Consumer Protection Issues: A Retail Perspective

Petra Rob General Manager METRO Group

STOA Workshop, June 6, 2006

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METRO Group – one of the most important international retailing companies

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Driving force for technological innovations in the retail sector

The METRO Group is a driving force behind the development and application of new technologies in the retail sector

Our objectives To make the entire supply chain more efficient – from production, through

distribution centers to incoming goods areas in the stores To offer customers a faster, more comfortable and more individual shopping

experience To develop uniform standards

Bundling of innovation-oriented activities in the Future Store and the RFID Innovation Center

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The Future Store in Rheinberg (Germany)

Opened in April 2003 First joint project of the METRO

Group Future Store Initiative Function of the Future Store

To test the application and interplay of innovative technologies under real conditions

To determine efficiency and cost-effectiveness

To test the acceptance of these technologies among customers

2 METRO Group Future Store Initiative

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Connection to the central merchandise management system

Employee PDAs

Wireless Bluetooth

peripherals Information Terminal

Self Check-out Personal Shopping Assistant

Smart Scales

Access Points

Customer PDAs

Wireless workspaces

AdvertisingDisplays

RFID

Smart Shelf

Future Store – an overview of the technologies

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Key technology for the future of retailing

The heart of RFID technology: thetransponder or “Smart Chip”

Transferring product data without physical contact through Radio Frequency Identification

(RFID)

Electronic Product Code (EPC)gives objects an unmistakable identity

TomorrowYesterday – Today

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RFID application today

The roll-out of RFID along the entire METRO Group supply chain began in November 2004

RFID application focused mainly on: incoming goods, outgoing goods, inventory replenishment

RFID transponders on:pallet-level and case-level

22 locations in Germany: Metro Cash & Carry, Real, Kaufhof and METRO Group distribution centers use the innovative technology

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RFID application in the future

Our vision: RFID at item level

This will pave the way for many innovative applications. A few examples: Smart Dressing Rooms that

provide additional information on individual items of clothing that the customer wishes to try on

Smart Shelves that automatically inform store employees when a particular article is running short

Future Check-out, which allows articles in a shopping trolley to be read without the need to place them on the conveyor belt

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RFID – future technology with key advantages for retailers and consumers

RFID technology allows retailers to … Accelerate processes in the supply

chain and make them more transparent

Reduce inventory levels Increase the availability of goods in

stores Continue improving quality

assurance Reduce counterfeiting

4 Benefits of RFID

RFID technology offers consumers … Additional product information Better availability of goods in

stores Better service and a more

interesting shopping experience Faster check-out Comfortable exchange of goods

without having to keep the receipt

RFID is a innovative technology from which both consumers and retailers can benefit in equal measure

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Shaping the future of retailing today

Thank you!