Consumer Protection Issues: A Retail Perspective Petra Rob General Manager METRO Group STOA Workshop, June 6, 2006

 METRO AG METRO Group – one of the most important international retailing companies 1 METRO Group

 METRO AG 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 1 METRO Group

 METRO AG 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

 METRO AG 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 Advertising Displays RFID Smart Shelf Future Store – an overview of the technologies 2 METRO Group Future Store Initiative

 METRO AG Key technology for the future of retailing The heart of RFID technology: the transponder or “Smart Chip” Transferring product data without physical contact through Radio Frequency Identification (RFID) Electronic Product Code (EPC) gives objects an unmistakable identity Tomorrow Yesterday – Today 3 RFID in the METRO Group

 METRO AG 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 3 RFID in the METRO Group

 METRO AG 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 3 RFID in the METRO Group

 METRO AG 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

 METRO AG

10 Shaping the future of retailing today Thank you!