Checkpoint Systems (NYSE: CKP), the leading supplier of shrink management and identification solutions worldwide, has announced a new agreement with French retail giant Leclerc. This announcement comes almost immediately after a similar agreement was signed with another leading French retailer Casino. The combined output of the deals means that Checkpoint will supply over 30 million identification and anti-theft tags per year, via its CheckNet service, delivering from Asia to serve the French market. Checkpoint experts have estimated this will deliver a saving of 50 million euros to the retailers’ supply chain cost based on results which have been proven by other leading retailers worldwide.
Casino and Leclerc who between them represent more than 40% of hypermarket apparel sales will control more than 150.000 garments every day with this new solution, applying integrated labels at source - mainly in Asia where most of the garments are produced. In addition, the practice of integrating a Radio Frequency circuit or a security element and a bar code at source has been hailed as a positive first step towards the introduction of Radio Frequency Identification (RFID), the so called ‘smart technology’– that will deliver even greater efficiencies to both the supply chain and the store.
A global outsourcing solution: CheckNet
CheckNet enables retailers who are sourced from low cost production regions such as Asia to provide their suppliers with all the identification elements - including Bar codes and security - from a single source, being ordered via internet and delivered within 24 hours to 60 different countries and more than 1500 different locations. The result is that this cost-effective solution provides each store with “floor-ready merchandise”; garments can be put straight out on sale, dispensing with costly and time consuming in-store tagging, and allowing staff to concentrate on what they do best – selling.
RFID
The adoption of RFID promises to change the face of modern retailing. The introduction of the technology is being driven by retail initiatives from early adopters such as Wal*Mart and Target Stores in the USA and The METRO Group in Europe. These companies are now employing the technology in their supply chains and have reported significant benefits from its use. Checkpoint, along with other partners, is closely involved in the METRO Initiative, having been chosen as preferred Systems Integrator, the company is also supplying the technology to retailers in the USA.
About the Casino Group
With 7,000 hypermarkets, supermarkets and mini-markets in France and abroad (the United States, Poland, Argentina, Uruguay, Brazil, Colombia, Venezuela, Thailand and Taiwan), the Casino Group is a leading distributor. It employs nearly 207,000 people and works with over 35,000 suppliers. In 2003, the Casino Group achieved a business volume (excl. tax) of 35.5 billion euros. For more information, go to: www.groupe-casino.fr.
About the E.Leclerc Group
With 536 outlets, 413 hypermarkets, 84 supermakets and 178 specialised stores, the Group achieved a consolidated turnover of 27.2 billion euros by the end of December 2003.
One of the leading supermarket distribution chain in France, the Leclerc Group numbers 495 members and has 80 000 employees. For further information, please visit: www.e-leclerc.com.