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SUPERMARKETS LOSE MILLIONS TO SHOPLIFTERS EVERY YEAR

 SUPERMARKETS LOSE MILLIONS TO SHOPLIFTERS EVERY YEAR
 THOROFARE, N.J., July 24 /PRNewswire/ -- Supermarkets apprehended


more than 295,000 shoplifters in 1991 and recovered merchandise at an estimated value that exceeded $5.93 million, according to a study conducted by the Food Marketing Institute (FMI).
 Sponsored by Checkpoint Systems, Inc., the survey said that shoplifting is one of the most costly types of loss in supermarkets. Sales of Electronic Article Merchandising(SM) (EAM(SM)) systems, which help supermarkets control these shoplifting losses, have tripled in the last year, said Kevin Dowd, executive vice president of marketing, sales and service for Checkpoint.
 Dowd said he sees this trend continuing as more supermarkets discover the benefits to be gained from installing EAM systems. According to the FMI study, on average, shrinkage rates as a percentage of sales were lower for companies that budgeted more for loss control efforts. Of the 46 companies operating more than 6,000 supermarkets that participated in the survey, six percent currently have EAM systems.
 Checkpoint's EAM systems are installed in major supermarkets, including Alpha Beta, Big Bear, Food Lion, Froger, Larry's Markets, Lucky's, National, Ralph's, Safeway, Super Fresh, Vons, and Winn Dixie and XTRA/Pueblo. The systems consist of paper-thin disposable targets placed on or in products, deactivation equipment at checkout, and sensors that detect the unauthorized removal of protected merchandise. "EAM systems can be a tool to help supermarkets control shoplifting," said Jerry Grissen, security manager for Safeway Stores' eastern region.
 Safeway, one of the largest supermarket chains in the United States, has been using Chekpoint's EAM systems since 1984 when supermarkets installed sensors in every checklane. Today, Safeway uses the detection sensors only at entrances and exits because of advancements in Checkpoint's EAM Technology.
 "Safeway now uses scan/deactivation which allows our checkout personnel to deactivate the target as they scan for price and product information," said Grissen. Checkpoint incorporates its deactivation electronics into many of the most popular bar code scanners being used at supermarket checkouts. "Scan/deactivation in supermarkets has done two things. Number one, it has brought the cost of the equipment down because you don't need to put sensors in every checkstand. Second, by deactivating, we reduce the possibility of someone bringing an item, on which the security target has not been deactivated, back into the store and setting off the alarm."
 In addition to major supermarket chains, many independent grocers are installing EAM systems to protect merchandise. "We have responded to the surge in demand for EAM systems in supermarkets by developing EAM products that improve productivity and bottom line profitability," said Dowd. Among the new developments for supermarkets are labels that incorporate security, pricing and weight information in one application for meat and deli items, which are among the most shoplifted items, according to the FMI study. The labels are applied using Hobart's printer/applicator, a standard in many supermarkets. In addition, Checkpoint is continuing its work with major scanning manufacturers, such as Spectra Physics, NCR, IBM, and ICL Datachecker, to build deactivation electronics into even more bar code scanners.
 The newest development for all retailers, from supermarkets to drugstores, to mass merchandisers, to speciality stores, is the advent of Impulse(SM) source tagging, a program that embeds Checkpoint security targets into products or packaging before they reach the retail level. Many retailers, manufacturers and packaging companies have formed partnerships and are already source
tagging. Supermarkets are evaluating source tagging because of the on-going associated with putting security targets on at the store level. "The biggest factor with any system like this is the cost of putting the tag on the product. Grocery stores need to evaluate these costs," said Grissen.
 As one West Coast supermarket executive said, "The motivator for using an EAM system, scan/deactivation, or source tagging is bottom-line profitability. As for a return on investment from EAM systems, what retailer wouldn't like to cut shrinkage in half?"
 Checkpoint Systems, Inc. (NASDAQ: CHEK) offers a variety of security and loss prevention solutions for the protection of assets in diverse market applications. As the leading developer of advanced microprocessor and radio frequency-based security systems, the company has more than 20 years experience in the loss prevention industry. Checkpoint's EAM and electronic access control systems are based on its Electronic Signatures(R) technology which makes unique radio signals assignable to items or people. Using detectable, paper-thin disposable targets that can be activated and deactivated without contact, the company's EAM systems are installed in more than 60,000 retail locations worldwide.
 /delval/
 -0- 7/24/92
 /CONTACT: Kevin Dowd, 609-384-2407, or Glenda Laudisio, 609-384-2411, both of Checkpoint Systems/ CO: Food Marketing Institute; Checkpoint Systems, Inc. ST: New Jersey IN: REA SU:


JS-MJ -- PHFNS1 -- 2869 07/24/92 07:32 EDT
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Date:Jul 24, 1992
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