10.09.2007

• Karstadt spurs on repositioning with RFID

Essen/Düsseldorf, 10 September 2007. Karstadt introduces RFID technology in the day to day operation of one of its department stores, thus consistently continuing its repositioning. The new technology has been in use in the Karstadt department store in Düsseldorf since 10 September 2007. Customers as well as the company benefit from a complete overview of all goods in stock in many respects. The aim is to keep customers happy by ensuring they can find the product they are looking for, whatever the size and colour, at any time in the stock held by the branch, as well as to guarantee more transparent and quicker logistics, which is an essential requirement for keeping the presentation of rapidly changing goods up to date. "With this project, which was completed in only five months, we are actively pursuing the repositioning of our department stores in a measurable way. RFID will help us to improve customer service considerably," said Karstadt CEO Peter Wolf in Düsseldorf.

RFID stands for "Radio Frequency Identification" and allows contact-free data transmission using radio waves. Karstadt is one of the first retailers in Germany to incorporate this technology into its regular sales process. The technology has undergone comprehensive laboratory testing beforehand. The project is implemented in co-operation with ADT, a top supplier of electronic safety solutions, and RF-iT Solutions, a leading supplier of RFID software and technology consultancy services.

Initially, the introduction of the RFID technology is concentrated on the complete range of jeans and jeanswear as well as modern man in the Karstadt branch in Düsseldorf. A label containing a micro chip is attached to the item of clothing and shows where the item is currently located. The synergy effects for the customers and the company are large: The system offers employees a real-time overview of the clothes available on the shelf and the reserves being held in the branch and the warehouse. Information about the exact location of each and every product is sent via radio waves, comparable to cell phone waves. This constantly up-to-date inventory increases product availability and accelerates delivery processes. For the customers, this means that their request can be seen to more quickly. Price changes can also be implemented quickly and comprehensively. In future this process will only take three days, while in the past it took roughly three weeks. Even the time-consuming annual inventory is now a thing of the past so that the sales assistants will have more time to see to customers' needs and provide the necessary services.
 
Besides the optimisation of logistics and the sales process, highest priority was given to data privacy during the development phase. Product data - and nothing else - are saved on the labels. When a product is purchased, no link to personal data can be created.  The chip is fully removed at the cash register. Moreover, the customers are made aware of as well as provided with information about the use of the new technology.

With this project Karstadt is taking a pioneering step toward improving its service and increasing efficiency. "The result will be a modern goods management system for a modern company," said CEO Peter Wolf.

About Karstadt
Rudolph Karstadt opened his first store in Wismar on 14 May 1881. 125 years after its foundation, Karstadt Warenhaus GmbH, a fully-owned subsidiary of Arcandor AG, is one of Europe's leading department store companies. Between 2.5 and 3 million customers visit the 90 department stores and 32 Karstadt sports good stores daily. Peter Wolf, a member of the Board of Directors of Arcandor AG (Essen), is the Chairman of the Board of Directors of Karstadt Warenhaus GmbH.

About ADT
ADT, a company owned by Tyco International Ltd. - business division Fire & Security, designs, installs and monitors electronic security systems for the retail trade, the business world and public authorities as well as safety and burglar alarm systems for private homes. Sensormatic® is a leading ADT brand. In Europe, the product range of ADT includes alarm systems as well as integrated safety programmes which combine access control, RFID, CCTV, electronic article monitoring and source tagging systems with each other. They are used to scare off thieves and protect people, objects, and property.
More information at www.adt-deutschland.de.

About RF-iT Solutions
RF-iT Solutions GmbH, Graz, Austria, was founded in 2005 as a management buy-out of the "RFID Software and Solutions" business division of Infineon AG. RF-iT Solutions GmbH combines business processes in companies with RFID technologies and IT through holistic solutions. With 25 staff, the company focuses on marketing and further developing the scaleable Auto-ID software product You-R® OPEN as well as offering complementary services. Combined with expert know-how, You-R® OPEN guarantees system integrators and software manufacturers fast and qualified access to the market.

Press contact:
Corporate Communication
Martin Schleinhege
Phone: +49 - (0)201 / 727 - 9667
Email: martin.schleinhege@arcandor.com