Business & Finance

Checkpoint Systems Snares Coles Myer Contract

Business Wire - May 21st, 2001

Checkpoint Systems, Inc., (NYSE: CKP), a leading provider of supply chain management and security solutions worldwide, has been chosen to continue supply of RF-EAS (Radio Frequency Electronic Article Surveillance) systems to all divisions throughout the Coles Myer group of companies. Major Coles Myer brands include Coles and Bilo Supermarkets, Kmart Australia, Liquorland, Target Australia, Officeworks and Myer Grace Bros stores. This success follows a detailed tender process, which called for responses in three specific areas, RF-EAS Equipment, RF-EAS Tags and Labels and Systems Maintenance.

It was announced this week that Checkpoint has been successful in winning a supply arrangement in all three categories. This success follows Checkpoint's proven track record in installing over 850 stores company-wide over the past three years, as well as the continued focus on developing new systems utilizing Checkpoint's unique digital RF-EAS technology. Checkpoint initially won the tender to supply Coles Myer with RF-EAS Systems in 1997; this original contract also included the supply of Equipment, Consumables and Maintenance.

"The decision by Coles Myer to expand its relationship with Checkpoint Systems underscores the effectiveness of our RF-EAS technology in combating shrink," said Michael Smith, President and CEO of Checkpoint Systems, Inc. "Our dominance in the Australia market is a clear indicator of the superiority of RF technology for loss prevention."

Checkpoint's RF EAS systems use proprietary digital radio frequency-based (RF) technology. When an active product tag passes through a sensor's detection field, it interrupts a radio frequency signal, triggering an alarm that alerts the retailer to a possible shoplifting attempt.

Other Australian retailers already using Checkpoint's RF EAS systems include Big W, selected Woolworths Supermarkets, Tandy, Dick Smith Power House, Lincraft, Adairs, Bing Lee, Valley Girl, My Size, Supre, Repco, Autobarn, My Chemist and Australia Post.