New Tag Recirculation Program Drives Down Cost of EAS, Improves Product Protection and Helps Protect the Environment


Prosegur and the Pact Group have teamed up to expand the EAS tag recirculation program to more retailers looking to reduce the cost of their EAS program, protect more products against shoplifting, and achieve their environmental responsibility goals more rapidly.

What is Tag Recirculation

Tag recirculation is a program that enables retailers to reuse their EAS tags more easily and efficiently by having them quickly move from the point of sale (a retail store) back to the point of manufacture or distribution center. Rather than having the retail associates sort, inspect and reapply tags to new merchandise in the store, associates simply place removed tags, pins and lanyards in a box without the need to sort them, and ship the box back to Prosegur and Pact’s sorting facilities. At this facility the tags, pins and lanyards are sorted, inspected, cleaned and repackaged, then shipped quickly to the manufacturer (or the retailer’s distribution facility) anywhere in the world to be reapplied on new merchandise. When the new merchandise arrives at the retail location, the tags are already on and can be placed on the sales floor more quickly.

How Cost Reduction Is Achieved

  1. Lower cost of labor – tags are sorted using specialized equipment in our sorting facilities, and reapplied to merchandise in garment factories that usually have lower labor costs. Retail associates waste less time on tag sorting and application, leaving more time for more productive tasks like serving shoppers.
  2. Proper tagging at factories or distribution centers also reduces the chances of damage to garments, which in turn reduces the associated costs.
  3. Tag recirculation has been shown to extend the life of an average EAS tag, reducing the need to buy new tags.

How the Products Become Better Protected

  1. Applying the EAS tags in garment factories or distribution center ensures a more uniform placement on the right part of the garment maximizing the effectiveness of the tag.
  2. It is estimated that around 20% of EAS tags are lost, stolen or damaged every year in the U.S., leaving 20% of merchandise that should be protected, unprotected. The tag recirculation program includes tag counting and regular reporting, so LP teams can always have an accurate inventory of their EAS tags chainwide, and can take action to add new tags when the number drops below an optimal limit.
  3. Because new merchandise arrives to stores already tagged, this can ensure that all stores have properly protected merchandise, reducing the problems that can stem from non-compliance by individual stores with the LP rules and guidelines.

Environmental Benefits

  1. By extending the lifespan of an average EAS tag, Prosegur and Pact help retailers reduce the amount of plastics ending up in landfills. This also helps retailers achieve their ESG (Environmental, Social and corporate Governance) goals.
  2. Prosegur already prevents around 60 tons of plastics ending up in landfills through its EAS depot program. The tag recirculation program, in the partnership with Pact, aims to further increase the reuse of tags, prevent their loss, and further decrease the amount of plastic waste.

Starting With the Tag Recirculation Program

In addition to the strong presence in the U.S., Prosegur and Pact have physical presence in many countries around the world including the ones where the garment industry tends to be concentrated. We can help retailers with global logistical networks implement the tag recirculation program quickly and easily. To learn more, simply fill out the form below, or call us at 1-800-939-4995.