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Leading Austrailian DIY retailer adopts source tagging program to battle shoplifting

Sensormatic Electronics has announced that leading Australian DIY retailer, BBC Hardware, will begin a chainwide source tagging program using Sensormatic's Ultra Max technology to combat shoplifting in its hardwarehouse stores.

BBC Hardware, headquartered in Sydney, Australia, plans to implement the program in all 48 hardwarehouse stores throughout Australia. The company will also install the Ultra Max technology for source tagging programs in all future hardwarehouse locations, of which 12 are planned for next year. The company is initially targeting its large format hardware-house stores because they would benefit most from source tagging due to the high-volume of merchandise and heavy customer flow.

The source tagging process begins with manufacturers inserting Sensormatic's small anti-theft labels inside products or the product's packaging at the point of manufacture. One of the benefits to the retailer is that it receives the bulk of its merchandise pre-tagged with electronic security devices, therefore avoiding the time and labour involved with applying the devices. Suppliers also benefit from additional volumes moving through the chain.

Geoff Schuberg, Group Security Manager for BBC Hardware, said the development of the program and the choice of technology and supplier have been well-considered ones. "We looked at all of the technologies and felt that Sensormatic's was the ideal solution for our stores," said Schuberg. "The system works with our store's wide entries and it performs well in close proximity with metals. We feel that the technology easily fits right into the hardware concept."

BBC Hardware tested the technology in its busiest store in Sydney over a five-month period, including the 1999 holiday shopping season. When the test period came to an end, BBC Hardware compared the shrinkage rates with those at its other stores. "The results were excellent," adds Schuberg. "We knew right away that this would be beneficial in all of our stores."

BBC Hardware's CEO Paul Handby agrees that source tagging is beneficial to retailers and realises that the benefits extend to manufacturers as well. "With the introduction of EAS and our continued commitment to loss prevention, I expect the payback to be substantial," said Handby. "The task now is to have our manufacturers participate in Sensormatic's source tagging program. These manufacturers will benefit from increased sales of those products through better displays and merchandising."

This announcement is the latest in a string of worldwide successes for source tagging, which has also been the focus of increased interest among Australian retailers over the past two years. Three other leading Australian retailers recently adopted source tagging programs, including speciality retail chains Spotlight and Kathmandu and department store Harris Scarfe.

Jerry Kendall, Executive Vice President of Sensormatic's Americas and Global Source Tagging Division, said the BBC Hardware decision reaffirms that the Ultra Max technology is especially well suited for the DIY market.

"Sensormatic's worldwide DIY market presence continues to expand," Kendall said. "Many leading retailers have already initiated programs, including The Home Depot, Sears, Trend-Lines and Home Base in the United States, Revelstoke Home Centres in Canada, Byggmakker in Norway and Silvan in Denmark. Adding BBC Hardware to this powerful list of retailers is significant because it reinforces the fact that Ultra Max is the EAS technology of choice."

For details contact DNA Sensormatic

tel: (021) 559 4425

fax: (021) 559 4431

e-mail: [email protected]

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