Checkpoint Systems, Impinj and Reva Systems Enable World's First End-to-End UHF Item-Level RFID Shopping Experience for METRO Group

Sep 20, 2007

Galeria Kaufhof Unveils End-to-End Apparel Inventory Solution With Unified UHF Gen 2 RFID Infrastructure

ESSEN, GERMANY--(Marketwire - September 20, 2007) - Leading radio frequency identification(RFID) solution providers Checkpoint Systems (NYSE: CKP), Impinj, Inc., andReva Systems today announced a breakthrough item-level tagging retailapparel implementation. The companies joined forces in METRO Group's FutureStore Initiative to enable the first complete supplier distribution toin-store point-of-sale RFID deployment using UHF Gen 2 standards-basedsystems. The implementation for METRO Group's high-end Galeria Kaufhofdepartment store in Essen, Germany is a milestone for the retail industry,delivering consumer-facing RFID applications that are integrated from thedistribution center to retail smart shelves and cashier checkout stations.

This deployment addresses METRO Group's vision of real-time inventorymanagement at Galeria Kaufhof stores and is the next step in years ofpioneering RFID effort and successful collaboration among RFID innovators.It is the first live RFID implementation to use the full suite of evolvedEPCglobal standards, including Gen 2 tags & readers, fixed and handheldreaders running low-level reader protocol (LLRP) for communications withthe local network, and application level events (ALE) to pass cleanformatted RFID data to the application layer, which uses an EPCISimplementation to facilitate RFID data sharing, mining and analytics.

Galeria Kaufhof has been using RFID in logistics and warehouse pilots since2003, and is determined to leverage its wealth of item-level tag data todeliver an improved retail shopping experience. This significantimplementation covers a wide breadth of applications including:

  • Inbound goods receipt
  • Back room real-time inventory management
  • Fixed and handheld readers tracking real-time sales floor inventory
  • A Smart Mirror showing complementary clothing choices or accessories
  • Smart Shelves with monitors indicating available garment size and style choices
  • In-aisle product information triggered by scanning items
  • RFID-enabled point-of-sale terminals delivering efficient checkout

The store's integrated solution elements and features include:

  • At METRO Group's Neuss warehouse, tagged goods are read and recorded by Checkpoint Systems' RFID/UHF hanging conveyor and packing table antennas, as well as Checkpoint UHF dock-door portals. Once at the Galeria Kaufhof store, garments are tracked using Checkpoint portals in the receiving area and stock room. Checkpoint has also deployed its dual EAS/RFID antennas for security monitoring at the entry/exit and fitting room areas, as well as point-of-service deactivation. In addition, Checkpoint will provide its system integration expertise for the trial.
  • The Galeria Kaufhof RFID solution uses Impinj Speedway® readers exclusively for all in-store fixed read points, and Impinj Monza tag chips to power all tags used in the store. Impinj near-field UHF RFID reader antennas in the smart shelves continuously gather data from tagged garments and accessories on the retail floor, and Impinj point-of-sale displays provide immediate product information to store personnel at all sale terminals.
  • Reva Systems provides centralized management capabilities for Galeria Kaufhof's RFID operations with the Tag Acquisition Processor (TAP) network infrastructure product. Reva's TAP is used to centrally control distributed RFID components including roughly 60 fixed and handheld readers from different vendors; it also integrates the RFID system with multiple applications and back-office systems, optimizing data capture across all of Galeria Kaufhof’s RFID operations.

"Galeria Kaufhof's deployment is the first large-scale application ofnear-field UHF RFID to track retail merchandise from distribution throughpoint-of-sale," said Michael Liard, Research Director, RFID & Contactless,ABI Research. "The newly available EPCglobal standards support a unifiedUHF Gen 2 RFID infrastructure and, combined with innovative technology,make such a real world solution possible."

"With this pilot we demonstrate how a department store fully equipped withRFID on the item level can work," said Dr. Christian Plenge, Head ofResearch and Innovation of MGI METRO Group Information Technology.Customers can see the benefits of item-level tagging in consumer-orientedstore applications such as intelligent shelves, intelligent dressing roomsand product-aware information kiosks. "The business benefit to us asretailers is that an end-to-end RFID infrastructure at the item level canfill the data void that exists between products being received and productsbeing sold," Plenge said. "We can now see products also in those steps ofour process chain which so far weren't illuminated by the inventorymanagement system."

About Checkpoint Systems

Checkpoint Systems, Inc. is the leading supplier of retail shrinkmanagement solutions. Checkpoint's global team helps retailers -- and theirsuppliers -- reduce theft, increase inventory visibility and provideconsumers with greater merchandise availability through the company'srapidly evolving RF technology, expanding shrink management offerings andCheck-Net labeling solutions. Checkpoint has more than one million RFdevices installed in stores today, and since the advent of the modernretail age has secured more than 100 billion products. Scalingcost-efficiently, Checkpoint's solutions provide increased revenues andprofits to a fast-growing community of successful retailers, and a superiorexperience for their consumers. Listed on the NYSE (NYSE: CKP), Checkpointoperates in every geographic market and employs 3,200 people worldwide. Formore information, visit www.checkpointsystems.com.

About Impinj, Inc.

Impinj, Inc. is a semiconductor and RFID company whose patentedSelf-Adaptive Silicon® technology enables two synergistic business lines:high-performance RFID solutions and semiconductor intellectual property(IP). Impinj is the leading technical innovator in developing UHF RFIDsolutions for both item-level and supply-chain tagging worldwide. Impinjdraws on its technical expertise and industry partnerships to deliver theGrandPrix™ RFID solution comprising high-performance tags, readers,software, antennas, and systems integration. Impinj also licensesinnovative IP products to leading semiconductor companies worldwide,allowing them to seamlessly integrate crucial nonvolatile memory (NVM)alongside analog and digital functionality on a single chip. Impinj's IPproducts include the popular AEON® family of embeddable cores, whichprovide rewriteable NVM technology in logic CMOS manufacturing. For moreinformation, visit www.impinj.com.

About Reva Systems

Reva Systems develops RFID network infrastructure products that enablecustomers to rapidly deploy scalable solutions using fixed and handheldreaders from multiple vendors in any environment. Reva's standards-basedTag Acquisition Processor (TAP) products facilitate improved systemperformance, manageability and accuracy while significantly lesseningimplementation time and complexity. RFID networks based on Reva TAPsdeliver accurate data and location information down to the plan-o-gramlevel in retail, dock-door level in distribution and workstation level inmanufacturing facility implementations. Reva products are delivered by aglobal network of partners and deployed worldwide by enterprises leveraginginnovative RFID applications to generate value in diverse industries.Reva's corporate office is headquartered in Chelmsford, Mass. with an EMEAheadquarters in Düsseldorf, Germany. For more information, visitwww.revasystems.com.

Impinj, Speedway, Self-Adaptive Silicon, GrandPrix, Monza, and AEON areeither registered trademarks or trademarks of Impinj, Inc. Reva, RevaSystems, and Tag Acquisition Processor are registered trademarks of RevaSystems Corporation. All other trademarks or registered trademarks are theproperty of their respective owners.