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Store Intelligence. Retail Excellence: Charting a Path for Electronic Article Surveillance
1. Store Intelligence. Retail Excellence
charting a path for electronic
article surveillance:
AM, RF-EAS, and RFID
2. Executive Summary
Electronic Article Surveillance (EAS) is an important defense against the rise of casual
and organized retail theft. Traditional approaches use Acousto-Magnetic (AM) or
Radio-Frequency (RF) technologies developed for EAS (RF-EAS). Retailers are also
investigating the adaptation of Radio-Frequency Identification (RFID) technology for
use in EAS.
The strengths and weaknesses of each approach depend on its underlying technology—
in particular, on the frequency and frequency band used to detect tags and labels. This
paper outlines AM, RF-EAS, and RFID technologies, and compares their performance in
real-world retail environments against the challenges of stores’ physical and electrical
environments, product composition and packaging, and countermeasures by thieves.
As a leading global provider of integrated retail performance and security solutions,
Tyco Retail Solutions helps its retail customers understand and overcome the
complexities of implementing an EAS system optimized for their product range, store
layouts, and business goals. No single technology will meet the requirements of every
retailer. But whether a retailer wants to implement traditional EAS, work toward a
converged EAS/RFID solution, or apply RFID technology to EAS, Tyco is ready to serve
as a trusted partner and advisor with the knowledge and experience to make their
goals a reality.
New Challenges for Loss Prevention
As brick-and-mortar retailers overhaul their stores and business models to meet new
economic and competitive challenges, they face an old adversary. Retail shrink ac-
counts for more than $119 billion in direct losses worldwide—1.45% of total retail
sales.1 In the U.S. alone, retailers lose more than $35 billion to shrink. Shoplifting
accounts for 31% of investigated U.S. cases of shrink, and 25% of those are attributed
to Organized Retail Crime (ORC), 2 a fast-growing racket in which thieves steal
merchandise for resale in physical markets or online. 3
To maintain profitability without compromising the shopper’s in-store experience and
1 Joshua Bamfield. The Global Retail Threat Barometer
to deliver the most protection from tight staff and budget allocations, retail executives
2011. (Nottinghamshire, UK: Centre for Retail
Research. October, 2011)
are reviewing alternative technologies, especially advances in Electronic Article
2 Richard Hollinger, Ph.D. and Amanda Adams, M.A. Surveillance. And as more of them adopt Radio-Frequency Identification technologies
2010 National Retail Security Survey. (Gainesville, FL: to help speed up supply chains and manage store inventory, retailers are also looking
University of Florida. 2011). for ways to adapt RFID technologies to improve inventory visibility associated
3 Tyco Retail Solutions Organized Retail Crime White
with shrink. 4
paper, Titled “Building your defences against
organized retail crime ”
4 Tyco Retail Solutions Shrink Visibility White paper,
Titled “Shrink visibility the forensics of integrating
item-level RFID and loss prevention”
Store Intelligence. Retail Excellence
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3. This paper takes an in-depth look at alternative technologies for EAS, including ways
that RFID can augment inventory protection. Its goal is to give retail executives a
technical background in the strengths and weaknesses of each technology, so they
can make confident decisions about how deploy them for maximum protection and
cost-effectiveness.
EAS technologies
Retailers use Acousto-Magnetic and Radio-Frequency EAS technologies in their efforts
to protect merchandise against theft. Some also discuss adapting RFID technology—
widely used in supply-chain and inventory management—to play a role in Loss Preven-
tion. Despite the similarity of purpose, the three technologies are in fact very different—
with significant implications for their roles in Loss Prevention.
All EAS technologies rely on electronic communication between a controller that
sends an electromagnetic signal and a tag to which it responds. The communication
links range, noise immunity, ability to carry information, and resistance to countermea-
sures determine the effectiveness of a technology—and these factors all depend on the
frequency used to create the link:
• Acousto-Magnetic technologies send out pulses at a low frequency of 58,000
cycles per second (58 kHz) in a tight band of just ± 600 Hz, or ± 1%. AM systems
are “one-bit,” that is, they detect tags designed to resonate at this frequency but
send no additional information.
• Radio Frequency EAS technologies pulse at 8,200,000 Hz (8.2 MHz, more than
140 times the AM frequency). The frequency band is wider: ± 1MHz, or > 12%.
Like AM, RF-EAS detects only the presence of a resonating tag.
• Radio-Frequency Identification technology originally was developed for military
and space applications5 and the EPC Generation 2 RFID standard is used for store
level inventory visibility in apparel retailing. Operating at a frequency from 902 to
928 MHz in North America or 865.6 to 867.6 MHz in Europe, RFID operates in
the Ultrahigh Frequency (UHF) band—more than 100 times higher than RF-EAS,
and using a much narrower frequency band—about two-tenths of one percent.
Also unlike both AM and RF-EAS, RFID is a true communications technology—
the RFID tag responds to communication from the RFID reader with data that
may include SKU or other product related information, not just confirmation of
its presence.
5 Mark Roberti, “The History of RFID Technology”, RFID
Journal. (Hauppauge, NY: RFID Journal, LLC.)
http://www.rfidjournal.com/article/view/1338.
Store Intelligence. Retail Excellence
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4. Although technically RF-EAS and RFID both use radio frequencies, they are very differ-
ent technologies, and behave differently in every important respect: for this reason, this
paper uses the term “RF-EAS” rather than the shorter “RF” to avoid confusion about
their capabilities.
Figure 1 positions the three technologies along the electromagnetic spectrum with
other communications technologies included for reference, and summarizes their key
differences..
Naval Communication AM Radio Television Mobile Phones
Very Low Low Medium High Very High Ultra High
(VLF) (LF) (MF) (HF) (VHF) (UHF)
10 kHz 100 kHz 1MHz 10 MHz 100 MHz 1 GHz
AM RF-EAS RFID
Acousto Magnetic Radio-Frequency Radio-Frequency
(AM) EAS (RF-EAS) Identification (RFID)
58 kHz ± 1% 8.2 MHz ± 12% 904 MHz ± 0.2%(North
Frequency America)
866.5 MHz ± 0.2% (Europe)
Coupling Induction Induction Radiation
101010101
Information ! ! 0101010101010
101010101
Tag detected Tag detected SKU-level information
Figure 1 Frequency bands used for communications between AM, RF- EAS, and RFID systems
and tags, with other communications channels included for reference. RFID specifications are
for the EPC Generation 2 standard. (Please consult the text for details.)
Why frequency matters
Electromagnetic technologies like AM, RF-EAS, and RFID obey the same physical laws
as light, sound, and even vibration and ocean waves, so their frequency determines
their effective range, antenna requirements, information rate—in fact, everything useful
about them.
Store Intelligence. Retail Excellence
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5. Low electromagnetic frequencies, like the low-frequency acoustic signals from a
foghorn, offer better range, easily penetrate moisture and other barriers, travel in all
directions from small, simple sources, can be detected by simple receivers, and are
difficult to block. But like the foghorn’s message, they carry only a minimum of high-
priority information. These physical properties make low frequencies ideal for robust
detection of tags in difficult environments or in the presence of countermeasures, so
long as the information “payload” is modest. Higher frequencies used for RF-EAS offer
lower penetration over a shorter range, require larger antennas, are more susceptible
to moisture and other barriers, making them easier to block—while carrying no addi-
tional information. UHF frequencies used for RFID operate directionally over “line of
sight” pathways, and are susceptible to blocking or detuning. In addition, they reflect or
“bounce” when they strike objects that impede their transmission—metal
surfaces, for example. But UHF frequencies can carry much more information, so
when conditions are right they’re ideal for rapid multibit communications like RFID.
In addition to frequency, the way in which systems are coupled with tags affects their
performance in real-world retail environments. AM and RF-EAS systems are inductively
coupled, that is, the tags resonate when placed in an electromagnetic field of the right
frequency. But RFID signals are radiated, like radio or TV signals—allowing signals to
travel further, leaving systems open to reflected signals from tags far from the exit.
Frequency bands and errors
Frequency determines range, penetration, and similar capabilities, but error rates
also depend on the frequency range, or band, that a controller accepts. A wider band
not only offers greater sensitivity to legitimate signals from tags, but also accepts more
spurious interference from other sources. A narrower band rejects such interference,
but at increased risk of missing tags. For EAS purposes, there two types of error (and
two types of correct outcome), as shown in Figure 2.
Tag Present No Tag Present
Tag Detected “Hit” outcome “False Alarm” error
Tagged merchandise is Nuisance alarms annoy shop-
leaving the store—Security pers; waste staff time
alerted
Tag Not Detected “Miss” error “Correct Rejection” outcome
Undetected thefts cut profit Normal shopper departure—no
and encourage thieves action required
Figure 2: Four possible results from an EAS scan, two correct outcomes and two types of error.
Store Intelligence. Retail Excellence
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6. AM technologies’ narrow (± 1%) frequency band offers better immunity from the
spurious signals common to store environments, because electrical noise outside the
band can’t be misinterpreted as the presence of an AM tag, and few in-store sources
produce noise that resembles AM resonance.
RF-EAS accepts a wider frequency band—partly to compensate for its limited range—
which opens the door to electrical interference from common store sources, including
electric door motors, elevators and escalators, fluorescent lighting ballasts, and others.
Additional false alarms come from products like coiled extension cords and some elec-
tronics, which resonate to the same frequencies as RF-EAS antennas. Another source
of false alarms unique to RF-EAS is the “Lazarus Effect.” RF-EAS tags are disabled by
short-circuiting them so they no longer resonate to signals from readers. But short-
circuiting is an imprecise process, and many “destroyed” tags rise again, like Lazarus,
to resonate at frequencies within the wide RF-EAS band of
acceptance. This results in an alarm from a tag on a pur-
chased item—the worst outcome for customer-satisfaction.
AM EAS labels are disabled in a way that doesn’t allow false
alarms, and they can be reactivated to facilitate restocking of
returned merchandise. RFID tags aren’t disabled at all—cor-
relation with POS data identifies an item as purchased.
RFID uses even higher frequencies than RF-EAS, but because
RFID communicates SKU-level product information and not
just presence of a tag, “misreads” are unlikely: detection of an
RFID tag requires a valid read of an entire RFID data packet,
which is virtually impossible unless an actual RFID tag is
present.
Much time, attention, and concern is focused on reducing false alarms, because they
annoy shoppers and waste staff time. But silent “miss” errors actually pose much
greater risks to stores. Misses represent direct losses from merchandise theft, and
also send unmistakable signals to thieves that a store is an easy target. In inventory
management RFID applications, misses have low impact: conditions are cooperative
and tightly controlled, and reattempts almost always are possible. But range limits for
all RF technologies, and the complete-read requirement for RFID, raise miss probabilities
to costly levels. And in retail EAS applications, misses undermine the function and
purpose of Loss Prevention.
EAS performance in retail environments
We can now apply our understanding of the physics of EAS technologies to the
challenges presented by retail environments, products, and dishonest adversaries,
and show how actual EAS systems perform in the difficult real world.
Store Intelligence. Retail Excellence
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7. Environmental challenges
Retail construction standards and practices present unique challenges for EAS technolo-
gies at the front of the store. AM solutions use robust low-frequency technology that
offers significantly longer range and is compatible with physical store infrastructures.
Therefore AM systems can cover wide entrances and are resistant to shielding from
metal doors and building materials, which means that antennas may be embedded in
store surfaces and grout lines, offering a welcoming, unobstructed pathway for shop-
pers entering the store.
In contrast, RF-EAS antennas must be placed in much closer proximity to shoppers,
and far enough away from doors and metal beams. This change can mean sacrificing
valuable front-of-store floor space to establish a “clear zone” in which RF-EAS systems
can work, or an uninvitingly narrow “tunnel” through which shoppers must enter and
leave. Not surprisingly, stores work hard and spend much to avoid such layouts, for
example by spacing multiple pedestals across an entrance to overcome RF-EAS range
limitations.
RFID also faces challenges at the front end, but for different reasons. Reflected UHF
signals can travel a long way, so exit-based RFID systems can read tags on merchandise
located a significant and unpredictable distance inside the store. Protection against
false RFID reads usually involves establishing a merchandise-free clear zone at the front
of the store: precisely where retailers prefer to position their most valuable merchandise.
But stray RFID reads from reflected signals as shoppers walk by make the correct clear
zone area difficult to determine.
“Nuisance” reads of tags on merchandise displayed near store exits may occur with
all three technologies. But at high frequencies used by RF-EAS and RFID, reflections
by shoppers and carts are much more significant, and may require establishing a
merchandise-free, unprofitable “dead zone” around RF pedestals to prevent false reads.
Metal shopping carts also deserve mention as a disabling environmental challenge for
high-frequency RF-EAS and RFID systems. Shielding by and interference from metal
cages is well known as a way to block radio transmission and reception—a fact not lost
on thieves. Worse, contact with metal directly alters RF antenna characteristics, so
clever packing of a metal cart by a thief may render applied RF-EAS tags unreadable.
Product challenges
Because of the different frequencies at which they operate, AM, RF-EAS and RFID tags
and labels perform very differently when applied to merchandise. Acousto-magnetic
frequencies are indifferent to blocking and interference from these sources, but RF and
RFID technologies struggle to read tags placed in or near metal foil packaging, metal
products, and products with significant water content, including liquor, meat, cosmetics,
and other valuable items.
Store Intelligence. Retail Excellence
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8. RF-EAS systems are also compromised in detection of small products such as over-the-
counter medications (which may also involve liquid or gel content and metal foil
packaging). On smaller items, the large RF-EAS tag—another attempt to overcome
range limitations—must be folded around a product edge. AM tags have a smaller
footprint and easily avoid this problem.
RFID has made significant progress in markets where these product challenges are
absent, particularly apparel. Garments contain little metal and no moisture, and most
are large enough to avoid placement constraints. With experience and testing, labels
“ Vulnerability to and placements can even be optimized for specific merchandise—and programs such as
source tagging certification ensure that EAS tags perform properly when merchandise
countermeasures is arrives in retail stores.
a critical differentiator Countermeasures by thieves
Environmental and product challenges to EAS technologies are significant, but they
among EAS change slowly, as technologies improve. The third type of challenge—countermea-
sures by increasingly organized and sophisticated criminals—adapts rapidly to LP
technologies in technologies and strategies, to maximize rewards to thieves and minimize their risks.
real-world retail Vulnerability to countermeasures is a critical differentiator among EAS technologies
in real-world retail environments. Studies of the feasibility of adapting RFID technology
environments.” for EAS, for example, have found that laboratory detection rates drop dramatically
in the presence of even the most elementary countermeasures. 6 Actual retail
environments are, of course, even more challenging.
Shielding
Shielding of an EAS tag so its response can’t reach the sensor is the simplest
countermeasure thieves adopt. The moisture in a thief’s body is often enough to
block signals from RF-EAS and RFID tags, although the low-frequency band used by
AM technologies makes it immune to this approach.
More sophisticated shields can be crafted by creating metal-shielded “booster bags”
from shopping bags, purses, backpacks, and laptop bags lined with the many layers
of aluminum foil necessary to defeat AM, RF-EAS, and RFID signals. Such
countermeasures can now be detected by “booster bag detector” accessories for
EAS pedestals that identify likely thieves as they enter the store equipped to steal.
Destruction and Deactivation
Removing or destroying EAS tags and labels would seem a straightforward counter-
measure. But the vulnerability of different technologies depends on their size, durability,
and potential for concealment—and these depend on their underlying technology.
6 Bill C. Hardgrave. RFID as EAS: Feasibility Assessment.
(Fayetteville, AR: University of Arkansas. December 19, AM hard tags are manufactured from tough plastic, with detachment mechanisms
2007). designed for maximum tamper resistance. Embedding labels in product packaging
Store Intelligence. Retail Excellence
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9. material by manufacturers or third-party Value-Added Resellers (VARs) offers another
way to complicate thieves’ attempts to defeat them. Because it works with virtually
any packaging material or process, AM technology is well suited to source tagging
applications. And AM labels, whether applied or sewn in, are smaller, tougher, easier
to embed, and harder to defeat than alternatives.
EAS performance of RF-EAS tags and labels, and of RFID tags, depends on their
antenna or inlay size, forcing a trade-off between performance and defeat resistance.
But RFID is very early in its evolution as an EAS technology, and companies like Tyco
Retail Solutions are applying decades of experience with AM defeat resistance to
develop creative RFID solutions for packaged goods and apparel.
Out of the lab; into the store
The use cases presented above may seem at odds with laboratory studies, which may
show AM, RF-EAS and RFID technologies performing comparably in EAS roles. But
this is precisely because of the differences between the laboratory, where variability is
strictly controlled to assure that results are consistent and reproducible, and the retail
environment, where variability is the norm. Consider what happens to RFID in EAS ap-
plications when confronted with even the most modest challenges.
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10. One Tagged Item One Tagged Shirt, Worn
Performance by Lane Performance by System
100.00% 100.00% 100.00% 99.44%
100.00% 94.44% 100.00%
90.00% 90.00%
100.00%
81.67%
80.00% 80.00%
70.00% 70.00%
60.00% 60.00%
63.33%
50.00% 50.00% 56.67%
40.00% 40.00%
30.00% 30.00%
20.00% 20.00%
10.00% 10.00%
0.00% 0.00%
Center Side Center Side Center Side
RF-EAS RFID AM
RF-EAS RFID AM
Figure 3: Left: comparison of RF-EAS, RFID, and AM loss-prevention technologies to detect
a single tagged item carried through center or side lanes of a portal (exit) in laboratory tests.
Right: performance of RFID and one EAS technology degrades significantly when the wearer of
a tagged shirt crosses the portal. 7
The EAS decision space
We’ve seen that AM, RF-EAS, and RFID technologies have radically different capabilities
when deployed for in real-world retail environments. But while the technology underlying
them may be complex, retailers’ goals for deploying EAS technologies are simple—
improve profitability, by:
• Protecting merchandise from shoplifting, employee theft, and other
forms of shrink
• Managing inventories through the supply chain and into the store to maximize
visibility and raise efficiency
Based on the discussion above, Tyco offers the following recommendations to retailers
as they deploy technologies to achieve these goals:
1. Consider your business goals for Loss Prevention, and for your organization
as a whole
2. Consider your merchandise mix and items to be tagged
7 Bill C. Hardgrave. RFID as EAS: Feasibility Assessment. 3. Maximize the value of current technology investments
(Fayetteville, AR: University of Arkansas. December 19,
2007).
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11. Higher-frequency technologies are appropriate for less challenging environments and
cooperative applications where tags are presented for reading. For example, inventory
visibility in apparel is an excellent fit for UHF RFID technology, and is already delivering
huge benefits for retailers who have adopted. But harsh environments and non-coop-
erative EAS applications present significant challenges for these technologies. Metal
sliding doors, packaged goods like health and beauty care, and professional shoplifting
countermeasures like foil lined bags create very adverse conditions for RF-EAS and
RFID. When these challenges are present, retailers should consider AM or AM/RFID
dual solutions.
A technology partner with experience across the frequency spectrum is an invaluable
asset who can help you:
• Select technologies that are right for your product mix, store environment, and
business goals
• Design a transition path that makes the best possible use of your current technology
investments
• Optimize the performance of your technology solution, even under the harshest
conditions
Tyco offers retailers the flexibility to choose the technology path that works best for
them, whether this is a combination of AM and RFID or RFID as EAS. Regardless of
your preferences, Tyco has the knowledge, commitment and resources to optimize
your technologies for security and store performance.
Store Intelligence. Retail Excellence
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