Moving premium spirits from locked cabinets to open shelves unlocks profits

September 99 Asset Management

Checkpoint recently announced that sales of premium spirit brands can increase dramatically when retailers move these products from locked cases to open display with source tagging. The integration of Checkpoint's ultra-thin, electronic article surveillance (EAS) security circuit directly into brand labels allows retailers to offer premium products on open display without security concerns. Some of the most popular and highest profit-margin products are leaving the lock-box for the open shelf, and retailers are seeing sales soar with Checkpoint's RF source tagging technology.

Moving premium spirit brands from locked cabinets to open shelves has moved products into shoppers' carts. Self-service of premium brands has long been a desire of customers who prefer ease and convenience when shopping and they will often pass up a purchase under lock and key. Ready availability of premium brands also enables impulse buying which increases sales dramatically.

Lyle Grafelman, National Products Manager of American Stores, said, "We conducted tests over a 13 week period and saw extraordinary sales increases by moving Crown Royal from our locked cases to open display. We were confident the product was thoroughly protected because of the embedded RF circuit and we were pleased to see such great results."

Checkpoint's EAS ultra-thin tags offer a wide range of retailers' opportunities to merchandise products more aggressively. In applications where internal shrinkage is a concern, pre-tagged merchandise is protected from the point of shipment. With premium products especially, shrinkage and theft control are critical issues to retailers. Retailers also save labour costs by no longer tagging merchandise upon arrival.

According to Fernando Kfourie, President of Seagram Americas, "Checkpoint's products offer the opportunity to combine EAS protection with the ability to openly merchandise premium products. Checkpoint's source tags are so thin it gives us the advantage of integrating loss-protection within our brand labels - directly on the product. Our product can be directly accessible to our customer, increasing sales dramatically while drastically reducing shrinkage. Retail sales of certain Seagram Americas' brands such as Chivas Regal, Martell Cognac, Crown Royal and Glenlivet have increased significantly in a number of retailer stores where the retailer has implemented Checkpoint's EAS source tagging."

Seagram Americas is committed to raising retailers' awareness of the merchandising opportunity this technology provides. The company has developed specific collateral material to describe the benefits of source tagging.

For details contact Lynda Jordaan at (011) 450 2851.





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