Protect Your Merchandise. Promote Your Messaging. Plan Your RFID Migration.

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1 MERCHANDISE VISIBILITY SOLUTIONS EVOLVE EXCLUSIVE e10 Protect Your Merchandise. Promote Your Messaging. Plan Your RFID Migration.

2 EVOLVE EXCLUSIVE E10 NEW solutions for Retailers Pressing Problems Retailing is a tough business, and it s even tougher these days. Merchandise must be refreshed more often and turned over faster. Shoppers expect more from retailers, but they have less time to shop, putting pressure on retailers to streamline their operations and ensure their merchandise is available for purchase. To help achieve their inventory management goals, more and more retailers and their brand-owner partners are adopting Radio Frequency Identification (RFID) in order to gain greater visibility into the location and status of merchandise throughout their supply chains, and in their stores. In apparel and other market segments, retailers have begun to see compelling benefits with RFID to help them reduce out-of-stocks, reduce working capital requirements, and increase sales. Additionally, shrink remains a major concern for retailers, especially in apparel stores, where theft is higher than in any other retail segment. At the same time, apparel retailers are very particular about aesthetics, implementing consumer-focused store design without compromising on anything that could hinder the shopping experience. As a result, apparel retailers require effective loss prevention solutions that fit their store design and ensure a customer-friendly entrance. Now that retailers have proven the ROI of RFID for inventory management, they are identifying additional benefits of RFID adoption to help them achieve their objectives in loss prevention, leveraging the same tag for both applications. But retailers have struggled to deploy solutions that combine inventory management and loss prevention, while finding creative ways to implement those solutions in graphically attractive ways that fit into their stores aesthetic design. There just hasn t been a single, integrated solution to let them do all of that. Until now.

3 Checkpoint s E10 solution: The ultimate in functionality, flexibility and cost efficiency Checkpoint s newest member of its EVOLVE family of Electronic Article Surveillance solutions takes functionality, flexibility and cost efficiency to a new level. The new EVOLVE Exclusive E10 antenna is offered in three different versions, to meet the unique needs of each retailer: rf-only, which can be upgraded to RFID when needs require rfid-only, for retailers committed to an RFID architecture Dual-mode RF/RFID, to create a seamless bridge from legacy to cutting-edge approaches Along with a field-installable RFID upgrade kit, this family of solutions allows retailers to select the perfect solution for their needs today and in the near future, by supporting a straightforward, proven transition to RFID. Retailers that want a smooth, affordable transition to RFID in order to simultaneously support both loss prevention and merchandise visibility have several options. First, they can stick with traditional EAS technology by adopting the RF-only model and then upgrade when they are ready with the RFID electronics upgrade package without costly construction or equipment replacement. They also can implement the new RFID-only pedestal, or continue to support traditional RF-EAS as well as RFID with the dual-mode antenna. Retailers that either already have adopted RFID or plan to do so in the near future will benefit from the technology s ability to support omni-channel retailing, because of RFID s ability to ensure inventory accuracy at the customer s order fulfillment spot, regardless of where an order may be placed. This allows retailers to accept online orders with full assurance that the purchased merchandise actually will be in stock in the store where the customer will pick it up. As omnichannel retailing becomes increasingly prevalent due to the flexibility and simplicity it provides to shoppers, RFID-based solutions like the E10 will play a critical role in making retailing more efficient and increasing customer satisfaction. The E10 comes equipped with high-quality graphics panels integrated into the antenna design, rather than as an add-on capability. This means retailers can support sophisticated graphics such as seasonal promotion or advertising messages on the antenna s sleek panels, allowing retailers and brand-owners to easily adapt messaging on a real-time basis. When the retailer needs to update the messaging, all they need to do is supply the artwork, which Checkpoint will provide as a service. This approach offers a clear upgrade over previous methods to support customized graphics and advertising, which usually used printed-paper inserts stuck into panels as a modification to an existing pedestal design. The E10 antenna is the first in the industry to support high-quality printed fabric graphics panels as an integral part of the design, and represents an extremely easy process for applying new graphics to the antenna s display area. The retailer s store associates can quickly and easily change the graphic panel in a matter of seconds, much as a customer tries on new clothes in the store s fitting room. This makes the pedestals desirable in retail apparel outlets where aesthetics are a must, but require the visual deterrent of an EAS pedestal.

4 EVOLVE EXCLUSIVE E10 Unmatched Feature set... The E10 antenna s flexible configuration options give retailers more than an important array of choices to meet their architectural needs. It also helps them leverage their RFID tag investments for loss prevention applications, as well as for merchandise visibility. This OneTag approach eliminates the need to have unique tags for both RFID and RF-EAS, thus helping them save money and time in attaching tags for shelfreadiness. Additionally, the E10 supports Checkpoint s patented Wirama Radar, which tracks the location and direction of RFID-enabled tags in the store. This technology reduces false alarms because merchandise located near the exit does not automatically trigger an alarm. This means that retailers can make better use of the premium real estate in the front of the store. Additionally, the system will not alarm on tagged items that are coming into the store, reducing false alarms that could be caused by inventory deliveries. The E10 s feature set also includes differentiated alarms, which allows retailers to quickly and reliably determine whether a theft of high-value merchandise has taken place, or if an unusually high volume of product may have exited the store. Different audio and visual alarm prompts send a clear signal to store associates, allowing them to immediately take the proper action based upon the priorities set by the retailer during the deployment process. Along with the E10 s graphics panels for high-impact product merchandising, retailers enjoy a wide range of benefits to help make their stores run more efficiently, promote their products more powerfully and ensure that products are securely displayed on fully stocked shelves when customers are ready to buy.

5 ... impressive benefits for retailers FEATURE: ADVANTAGE: BENEFIT: Three configurations: RF only, RFID only, Dual Retailers can protect the exit door with the technology that best meets their needs Supports the retailer s current and future RFID deployment plans Graphics panels can be quickly replaced by store associates without tools Panels can be updated as often as necessary, and easily changed by store associates Support store promotions and advertising in real time, cost-effectively System identifies which EPC numbers have triggered alarm On-shelf inventory can be updated easily in concert with EPC numberbased inventory system Reduced out-of-stocks enables consumers to find merchandise, increasing sales Tracks location and direction of RFID tags Stray tags near exits won t trigger alarm; static merchandise near exits won t cause false alarm. Lower false alarms, greater associate confidence, better merchandising Wirama Radar recognizes tags in fringe field System recognizes static tags that are not exiting and does not alarm unless they are removed from the store Improved merchandising flexibility near the exit, better use of valuable real estate Differentiated alarm for high-value items Store associates can focus their responses on alarms for the most valuable merchandise Higher employee productivity; greater likelihood of recovering goods Patented virtual deactivation technology Enables the pedestal to alarm on tags that were not read at the POS (stolen), while not alarming on items that were sold at POS Improves theft detection, improves the customer returns process, and eliminates the need to kill or remove RFID tags on transactions

6 EVOLVE EXCLUSIVE E10 Why Checkpoint? A history of innovation in RF and RFID, benefitting retailers for decades Checkpoint is unique in its ability to combine the technologies, services, industry knowledge and business practices necessary to help apparel retailers manage the transition to cutting-edge solutions combining higher functionality with increased cost efficiency. Checkpoint is committed to delivering customers a full-solution, end-to-end offering, with a single source of responsibility for the full solution. For more than 40 years, Checkpoint has been a leader in the use of RF-EAS technology for loss prevention, and its investments in RFID for both hardware and software over the past decade have given the company unique insight and practical experience into how to design, deploy and support RFID solutions for retailers. In addition, Checkpoint has a long history of serving the needs of the apparel industry through intelligent labeling solutions, high-theft solutions for apparel and accessories, and item-level merchandise visibility, allowing the company to immediately grasp the challenges faced by apparel retailers and come up with a customized solution for each retailer s challenge. The company offers customers a global service and support network that designs, installs and maintains all aspects of the solution. Checkpoint s global footprint for RF and RFID engineering services makes installation and field service smooth and efficient, allowing us to work with customers from the very earliest stage of the process to develop a quantifiable business case to full-scale deployment. The company s cloud-based remote support provides a centralized dashboard to monitor and diagnose the performance of the pedestal and enables the support team to remotely maintain the solution, reducing disruptions in-store. Checkpoint was a pioneer in the development of RFID-based EAS solutions, and also offers an innovative overhead solution that is embedded into apparel retailers ceilings for unobtrusive operation. The company s patented Wirama Radar deployed in both the overhead solution and the new E10 antenna eliminates stray reads that have long been a problem with legacy technologies, thus improving detection without compromising the retailer s ability to merchandise its goods near store exit areas. As a New York Stock Exchange-listed company, Checkpoint has the financial resources to provide retailers with a long-term solutions roadmap, using today s leading-edge technologies while helping to drive the development of new technologies and industry standards for advanced applications down the road. The company s extensive global service and support organization handles project deployments and ongoing service, even in far-flung parts of the world. Multinational retailers have consistently turned to Checkpoint to handle complex systems integration and service requirements across broad geographic areas. And, Checkpoint s commitment to environmentally responsible practices and support for ethical business practices at the global, national and local levels has made it a trusted partner and valuable advisor to hundreds of the world s most successful retailers.

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8 Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint partners with retailers and their suppliers to reduce shrink, increase shelf availability, ensure labeling consistency and achieve operational excellence. Checkpoint s solutions enable retailers to enhance the shopping experience for consumers and grow their businesses profitably. Shrink Management Solutions Merchandise Visibility Solutions Apparel Labeling Solutions USA Tel: or marketingleads@checkpt.com EUROPE Tel: + 34 (0) european.marketing@eur.checkpt.com ASIA PACIFIC Tel: (0) asiapac.marketing@checkpt.com 25% Cert no. SGS-COC