Visit the LPRC web site

Visit the NRF LP 2012 show web site

Newly Added Leaders and Innovators Key Drivers of Company’s Future Growth

IRVINE, Calif. (May 9, 2012) – The Retail Equation, the industry leader in retail transaction optimization solutions, has named three new members with extensive retail analytics and technology advisory backgrounds to its board of directors, including Dr. Mark N. Greene, George W. Off and Dr. Charles W. Stryker. The addition of these executives will help The Retail Equation continue its rapid expansion throughout and beyond North America and broaden its development of innovative solutions for the retail market. Each will offer insights to expand the company’s solutions to help retailers better control fraud and shrink, improve predictive analytics and adopt new technology.

“During the past 24 months, The Retail Equation has more than doubled its client base, while our market has seen an industry-wide increase in return fraud and retail shrink, presenting ever greater opportunities,” said Mark Hammond, chairman and CEO for The Retail Equation. “Each new board member brings a specific level of expertise and leadership, which will be instrumental in helping The Retail Equation continue its path of rapid growth.”

Dr. Mark N. Greene was appointed to the board on April 1 and is the former CEO and current chair of the advisory board of Fair Isaac Corporation (NYSE: FICO), a company providing predictive analytics, credit scores, fraud detection and business rules management for the financial services and retail industries. Greene is also a director of Neustar (NYSE: NSR) and Capella Education Company (NASDAQ: CPLA). Prior to these leadership roles, Greene was general manager of the banking industry vertical market segment for IBM Corporation.

George W. Off joined the board on January 1. He retired as chairman of the board of Checkpoint Systems Inc. (NYSE:CKP) in 2009. Off also served as CEO for Checkpoint Systems, a manufacturer and marketer of solutions for retailers in more than 32 countries. Prior to Checkpoint Systems, Off was founder, chairman and CEO of Catalina Marketing Corporation, a multinational company providing targeted marketing solutions for consumer goods companies, pharmaceutical manufacturers and retailers.

Dr. Charles W. Stryker is the founder and president of Venture Development Center, Inc. (VDC), a professional advisory firm assisting companies in creating, developing and commercializing new products in the information services industry. Prior to founding VDC, he was president of InfoUSA. Stryker has served on a number of public and private boards and joined The Retail Equation on April 1. His board appointments have included: 24/7 RealMedia, Greenfield Online, Intelliquest, Inc., MyLife.com, Geoscape, RDC, and Datamyx.

About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as two percent, with significant return on investment. The Software-as-a-Service applications operate in more than 20,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Lisa Mendenhall
Echo Media Group
(760) 683-4084
lisa@echomediapr.com

Visit the RILP LP show web site

Former LPRC Research Coordinator Expands Capabilities for Fighting Retail Fraud and Shrink Loss

IRVINE, Calif. (Feb. 27, 2012) — The Retail Equation, the industry leader in retail transaction optimization solutions, today announced the appointment of Daniel Downs, Ph.D., as the company’s first statistical criminologist. A noted professor, presenter, author and researcher, Downs has a vast background in retail loss prevention and criminology and most recently worked for the Loss Prevention Research Council (LPRC).

“Dr. Downs’ wealth of experience and knowledge in retail crime prevention increases our ability to serve the needs of our growing retailer base,” said David Speights, Ph.D., chief statistician for The Retail Equation. “His ability to analyze data, identify problems and develop solutions further allows us to better model retail fraud and shrink in order to separate those occurrences from legitimate retail transactions.”

Downs’ academic and research expertise focuses on quantitative research methods and predictive modeling, as well as delinquency and crime prevention. He shares this knowledge as a frequent lecturer at industry conferences and forums and will interface closely with TRE retail customers to help identify and combat retail fraud and its correlated shrink impact.

Prior to joining The Retail Equation, Downs was a research coordinator for LPRC where he was instrumental in gathering fact-based research to develop loss control solutions to positively affect its members and the retail industry. He also was a co-editor of Security Journal-Special Issue and conducted podcast interviews that focused on profiling cybercrime victims.

As an adjunct professor at the University of Florida, Downs taught a course entitled Crime Prevention: Field Research and assisted in other courses related to criminology, law, statistics, research and psychology. Downs received his Ph.D. in Criminology from the University of Illinois, his M.A. in Experimental Psychology and B.S. in Psychology from California State University, San Bernardino.

About the Retail Equation
The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as 2 percent, with significant return on investment. The Software-as-a-Service applications operate in more than 20,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Lisa Mendenhall
Echo Media Group
(760) 683-4084
lisa@echomediapr.com

Return Fraud Reached its Highest Level in 2011 Costing Retailers Millions of Dollars and Hundreds of Thousands of Jobs

IRVINE, Calif. (Jan. 16, 2012)—The Retail Equation, the industry leader in retail transaction optimization solutions, today released its 2011 Consumer Returns in the Retail Industry report, which analyzes results from the National Retail Federation’s annual survey on merchandise returns and provides insights for retailers to minimize the effect of return fraud and abuse on their business.

“In the competitive world of retail, it is critical to understand how returns and return fraud impact customer service, reduce net sales, and contribute to inventory shortage – clear causes of lost profits,” said Mark Hammond, chairman and CEO of The Retail Equation. “This report is intended to offer keen insights into merchandise return policies and procedures, as well as potential fraud and abuse. It is designed to help loss prevention professionals compare and contrast their own results against their peers with the intention of reducing losses.”

According to the NRF, retail fraud and abuse rose to an estimated $14.3 to $18.4 billion in 2011 – the highest ever reported. This rise is causing retailers to offset the negative business impact by raising prices and reducing costs. Last year alone, return fraud cost retailers and workers between 524,000 and 673,000 jobs. And the cost to each state is steep also. Retail revenue losses are costing states a total of $870 million to $1.1 billion in lost sales taxes.

Return abusers continue to look to receipts as an easy way to make fraudulent returns. Forged receipts rose nearly nine percent over 2010 and non-receipted returns also increased. E-receipts are creating yet another challenge and may render receipt-based return authorization systems even more vulnerable.

“The survey results indicate the presence of a receipt causes retailers to consider a return valid,” added Hammond. “Proceed cautiously, as there are many instances where systems and policies are being abused by shoppers with seemingly valid receipts.”

Preventing fraud and abuse is a major challenge, but retailers are also looking to improve the shopping experience and differentiate the consumer experience during the return process. The ability to offer more flexible and lenient returns, while still mitigating the risk of fraud and abuse is critical.

Such challenges can be addressed through a return optimization solution called Verify-2™. It is designed to distinguish and deter the one percent of consumers that are fraudulent and abusive, allowing the remaining good 99 percent to shop and return as usual.

The Retail Equation’s report draws several conclusions: Shrink will always be a key metric and has been a large focus for LP teams. Return fraud and shrink are correlated, but return fraud has many independent facets too. The growing identification of return fraud as a separate and important issue to be addressed indicates there is a demand for improvement, which is represented by increased focus on systems and programs.  For a complete copy of the report, please go to www.theretailequation.com/Retailers/IndustryReports.aspx.

About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper’s purchase or return into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as two percent, with significant return on investment. The Software-as-a-Service applications operate in more than 17,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more.

To see complete results from the NRF survey or to learn more, visit http://www.lpinformation.com/return-fraud. Details on The Retail Equation’s return optimization solutions for retailers can be found at www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Lisa Mendenhall
Echo Media Group
(760) 683-4084
lisa@echomediapr.com

Company’s Stringent Credit Card and Consumer Information Data Security Standards Earn it Top Designation  

IRVINE, Calif. (Aug. 23, 2011)—The Retai Equation, the industry leader in retail transaction optimization solutions, today announced it has again earned a compliant validation by the Payment Card Industry Data Security Standard (PCI DSS) acknowledging its strict credit card security standards. Digital Resources Group (DRG), a Qualified Security Assessor Company (QSAC) and Approved Scan Vendor (ASV) credentialed by the PCI Security Standards Council, conducted the PCI DSS compliance validation in which standards are increasingly more rigorous every year.            

“By meeting the card industry’s most rigorous set of data security requirements, The Retail Equation demonstrates its commitment to data security and underscores it as a top priority for the company and its clients,” explained Jim Cowing, CISSP, QSA and CEO for DRG. “Not only has the company adhered to cardholder security best practices, it is also diligent in the application of the same standards to the handling of sensitive consumer transaction information such as driver’s license data—positioning the company as an industry leader in security compliance.”            

PCI DSS v1.2.1 is the current payment card industry data security requirement for entities that store, process or transmit cardholder data, and has been endorsed by all the major card brands―Visa Inc., MasterCard Worldwide, Discover Network, American Express and JCB. Audits to assess PCI DSS compliance must be conducted on a regular basis by all service providers and major retailers. The Retail Equation, which works with retailers nationwide to offer return optimization solutions, engaged DRG to conduct a third-party security review to determine whether the company met PCI requirements related to the protection of data contained in retail transactions. The Retail Equation and all systems involved in cardholder data and personally identifiable information used for identification and analysis were evaluated by DRG during the compliance validation process.  

“As PCI DSS testing requirements become increasingly more stringent, The Retail Equation continues to apply new practices to ensure we are re-validated as PCI DSS compliant. While the PCI assessment focuses on our credit card security, we also apply those standards to the personally identifiable information even more critical to us and our retail clients,” said Raymond Kelly, director of IT for The Retail Equation. “Our infrastructure security is absolutely vital and this important designation reaffirms our role as a solid, secure business partner, proficient in safeguarding valuable data.”

About The Retail Equation 
The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as 2 percent, with significant return on investment. The Software-as-a-Service applications operate in more than 17,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.

About Digital Resources Group

Digital Resources Group (DRG), www.drgsf.com, is a global information security assessment and data protection organization with over 12 years of experience delivering quality security, audit, risk and controls services to market leading companies through offices in the US and Latin America.   DRG, a Qualified Security Assessor (QSA), Approved Scanning Vendor (ASV) and Payment Application Qualified Security Assessor (PA-QSA), is a leader in payment card industry (PCI) security validation and compliance services. Endorsed by industry card associations, as well as leaders from financial services, healthcare, telecommunications, and government agencies, many businesses rely on DRG for valuable security expertise. The company provides a range of consultation and technical security support solutions that provide high-quality, full-service security assessment, remediation, implementation, incident response and related support services to help organizations maneuver through the complex and changing security challenges and compliance requirements of various industry sectors.

FOR IMMEDIATE RELEASE
Contact: Lisa Mendenhall
Echo Media Group
(760) 683-4084
lisa@echomediapr.com

Verify-2 Designed to Improve Return Process for Retailers

IRVINE, Calif. (July 13, 2011)―The Retail Equation, the industry leader in retail transaction optimization solutions, today announced its Verify-2™ application successfully achieved Enterprise Mobility validation by completing Motorola Solutions’ Enterprise Mobility Validated Solution Program, which includes joint testing at the Motorola Solution Center in Holtsville, New York. The Retail Equation’s Verify-2 allows retail companies to provide a positive experience for consumers with fair and friendly customer service, while identifying and protecting against return fraud and abuse at the point of return. This designation assures customers and partners of system interoperability between select Motorola imaging devices and The Retail Equation solutions.

Return fraud and abuse is a $14-18 billion annual problem in the retail industry, representing considerable dollars that are needlessly lost. Verify-2 return authorization is designed to distinguish and deter the 1 percent of consumers that are fraudulent and abusive, allowing the remaining good 99 percent to shop and return as usual. Retailers using Verify-2 optimize net sales and reduce return rates and shrink, saving millions of dollars annually, while maintaining a fair and balanced return process for their good customers.

“Achieving Motorola Solutions’ Enterprise Mobility Validation reflects The Retail Equation’s dedication to offering the most effective solutions on industry leading hardware platforms,” said Mark Hammond, CEO of The Retail Equation. “Not only do Verify-2 and our other solutions create an improved overall customer experience, but we also have seen return rates decline and net sales increase amongst our retail clients.”

Motorola Solutions’ Enterprise Mobility Validated Solutions Program enables partners to test and validate their mobility solutions on Motorola products to help ensure interoperability and meet the customer application-specific needs, as well as reduce both the risk level and the time to deployment for the customer. Working closely with engineering teams, Verify-2 has been tested and co-validated on select products, including the Motorola Symbol DS6700 1D/2D Imager Scanner.

The terms of the validation, including disclaimers, are set forth in the Test Agreement between Motorola and The Retail Equation and the Enterprise Mobility Validated Test Report.

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as 2 percent, with significant return on investment. The Software-as-a-Service applications operate in more than 15,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Lisa Mendenhall
Echo Media Group
(760) 683-4084
lisa@echomediapr.com

Expansion Supports Retailers’ Growing Demand for Company’s Predictive Analytics Services 

IRVINE, Calif. (Feb. 15, 2011) —The Retail Equation, the industry leader in retail transaction optimization solutions, has expanded its analytics team with the addition of Christopher Hanks, Ph.D., who joins the company as a senior statistician.“As retailers continue to realize significant value from The Retail Equation’s transaction optimization services, Christopher Hanks will play an important role in expanding our analytics group to support our growing customer base,” said David Speights, Ph.D., chief statistician for The Retail Equation. “His expertise will also allow us to enhance our product portfolio and continued development of predictive consumer behavior models—elevating our ability to serve retailers that can benefit from our industry-leading capabilities.”

Hanks will work closely with Speights and the specialized team at The Retail Equation to improve the statistical models that maximize revenue and margins for retailers. In addition, his support will enhance the company’s ability to assist retailers’ need for increased speed of analysis, providing vital information for operations, loss prevention and marketing decision-makers.

Prior to joining The Retail Equation, Hanks was a statistical consultant for the University of California, Irvine, where he specialized in survey research and marketing data. He also served as director of Research and Information Systems at Amen Clinics in Newport Beach, Calif., where he managed and mined a vast psychiatric brain image database. He also worked as a senior statistician for the Center for Statistical Consulting at the University of California, Irvine. He earned his doctorate in political psychology and master’s degree in social science from the University of California, Irvine, and his bachelor’s degree in political science from California State University, Northridge.

About the Retail Equation

The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as 2 percent, with significant return on investment. The Software-as-a-Service applications operate in more than 15,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
714-573-0899, ext. 226
beth@echomediapr.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group
714-573-0899, ext. 226
beth@echomediapr.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group
714-573-0899, ext. 226
beth@echomediapr.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group
714-573-0899, ext. 226
beth@echomediapr.com

Streamlined Software Solution Further Aids Retailers in Protecting Against Fraud and Shrink at Point-of-Return—Without Requiring ID

IRVINE, Calif. (Jan. 11, 2010) —The Retail Equation, the industry leader in retail transaction optimization solutions, today announced the launch of Verify-2™ Return Authorization, a cutting-edge software solution that makes it easier than ever for stores to protect against fraud and shrink at the point-of-return, while still providing fair and friendly customer service. The new version supersedes the company’s Verify-1® product and includes all the same industry-leading features—with the added option to deploy the system without needing to collect customer ID on many return transactions via its new receipt triangulation™ system.

By employing The Retail Equation’s patent-pending receipt triangulation feature, Verify-2 is able to look inside a receipt to identify a customer with, or without, a form of ID. This innovative function helps retailers reduce their shrink and cut their costs, all while creating a more positive experience for shoppers.

“As the industry expert on merchandise returns, we developed the receipt triangulation methodology for identifying individuals based on a long-term statistical analysis of patterns and trends seen across all retail transactions,” said Mark Hammond, CEO of The Retail Equation.

Like Verify-1, the enhanced Verify-2 solution utilizes predictive analytics to distinguish and deter return fraud and abuse, a $15 billion per year problem in the United States. As part of the service, The Retail Equation is contracted by retailers to validate the integrity of every return, in real-time, at the individual shopper level through the use of statistical models.

In addition, Verify-2 takes return authorization beyond in-store retail transactions. The solution is now capable of validating returns across all retail channels—including online and catalog sales. The software solution is also effective in executing SKU-based decisions, in conjunction with or independent from the individual making the return. For example, policies may dictate that certain types of products, such as undergarments, may not be permitted for returns due to health and safety issues, while others, like baseball bats, may be declined due to manufacturer requirements. In other cases, the presence of one of a retailer’s most profitable customers might trigger an analytics-based decision to waive a restocking fee on a particular item. Retailers can now identify specific requirements to Verify-2 for optimized, SKU-level return authorizations.

The Retail Equation’s return optimization solutions can be found in retail stores throughout the United States. Retailer benefits from optimization of the return process include: improved shopper satisfaction, higher store comps and net sales, fewer lost sales, increased post-return purchases, better shopper conversions, streamlined associate procedures, and the ability to implement more customer-centric return policies, if desired.

About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 15,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. For more information, visit www.theretailequation.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
949-486-8960, ext. 226
beth@echomediapr.com

Forward-Looking Statements

Certain statements contained in this press release regard matters that are not historical facts and are forward-looking statements (as such term as defined in the rules promulgated pursuant to the Securities Act 1933, as amended). Because such forward-looking statements contain risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. The company undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 15,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. For more information, visit www.theretailequation.com.

About Finish Line

The Finish Line, Inc. is a premium athletic footwear store and one of the nation’s largest mall-based specialty retailers, offering a deep selection of performance and sport-style footwear, apparel and accessories for men, women and kids. The Finish Line, Inc. is publicly traded on the NASDAQ Global Select Market under the symbol FINL. The company operates 679 Finish Line stores in 47 states and online at www.finishline.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
949-486-8960, ext. 226
beth@echomediapr.com

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. For more information, www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

About MICROS-Retail

MICROS-Retail (the new retail solutions division of MICROS Systems Inc. which includes its subsidiary companies Datavantage, CommercialWare, eOne Group, and Redsky IT), is the leading worldwide provider of comprehensive, best in class solutions for the worldwide retail and direct markets, enables retailers to deliver on the customer experience while optimizing operational efficiency across all channels. MICROS-Retail offers a full suite of solutions in a choice of deployment options. Java technology, rich functionality, support flexibility and successful experience in demanding environments explain why hundreds of retailers around the world rely on MICROS-Retail to strengthen their businesses and deliver results. For more information, www.micros-retail.com.

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. The Return Rewards® solution creates sizeable incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Beth P. Quezada
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

FOR IMMEDIATE RELEASE
Contact: Beth J. Passarella
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

About Trustwave

Trustwave is the leading provider of on-demand and subscription-based information security and payment card industry compliance management solutions to businesses and government entities throughout the world. For organizations faced with today's challenging data security and compliance environment, Trustwave provides a unique approach with comprehensive solutions that include its flagship TrustKeeper® compliance management software and other proprietary security solutions. Trustwave has helped more than 30,000 organizations — ranging from Fortune 500 businesses and large financial institutions to small and medium-sized retailers — manage compliance and secure their network infrastructure, data communications and critical information assets. Trustwave is headquartered in Chicago with offices throughout North America, South America, Europe, Africa, China and Australia. For more information, visit www.trustwave.com.

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. The Return Rewards® solution creates sizeable incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com

FOR IMMEDIATE RELEASE
Media Contacts: 
Beth J. Passarella
Echo Media Group 
714-573-0899, ext. 26 
beth@echomediapr.com

Michelle Genser 
Trustwave 
312-873-7288 
mgenser@trustwave.com

Survey Conducted by Loss Prevention Research Council and The Retail Equation Provides Insight Into “Customer Returns in the Retail Industry”

IRVINE, Calif. (April 30, 2008) —The Loss Prevention Research Council, in conjunction with The Retail Equation, today announced the results of this year’s “Customer Returns in the Retail Industry” survey. The survey, which The Retail Equation began conducting in 2003, is designed to provide information to retailers to improve their consumer returns business processes and provide an estimate of the amount of return fraud experienced within the retail market.

Using 2007 retail data and 2008 survey results, the study revealed that return fraud and abuse is a $15.5 billion problem. It also showed that retailers are increasingly trying to reduce the cost of fraudulent returns. The survey found that nearly 70 percent of the respondents specified that it is an important issue to their company, and the majority of retailers – 64 percent – report that focusing on reducing refund fraud is a high priority. However, there is clearly a performance gap because twothirds of retailers believe that their current return policies and systems are “ineffective” or only “somewhat” effective in deterring return fraud and abuse. That indicates that there is still much room for improvement on the issue.

“The results of this survey are consistent with the research we have conducted to help develop our return fraud and abuse applications,” said Mark Hammond, chairman and CEO of The Retail Equation. “Return fraud is a significant problem and retailers are increasingly looking for ways to combat this fraud through technological solutions.”

A majority of retailers’ current processes and systems for reducing return fraud appear to focus more on non-receipted return situations, but the survey highlights a warning with well over half finding forged receipts used to commit return fraud. This points out a growing trend and should result in closer attention being paid to retailers’ increasing vulnerability to fraud on receipted returns.

The survey also indicated that there is a growing movement – across all four surveys – toward use of automated return authorization systems. These technological solutions can be found in thousands of stores in hundreds of malls across the country, and save retailers an estimated $200 million or more annually.

According to Dr. Read Hayes, director of Loss Prevention Research Council, “A retailer’s approach to managing returns is largely keyed on tracking customers, and some high-risk products, while acting on consumers’ purchase and return histories. Implementing the right technology, combined with employee training that encourages diligent attention to the issue at the store level, will result in decreased return fraud and abuse, as well as increased net sales, higher profits and improved customer satisfaction.”

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. The Return Rewards® solution creates sizeable incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com.

About Loss Prevention Research Council

The Loss Prevention Research Council (LPRC) was founded in 2001 by leading retailers in an effort to support the fact-based needs of the Loss Prevention industry. LPRC is incorporated as an independent organization, designed to provide objective, science-based information, analyses, training, expert testimony and other solutions to its members and the industry. The organization’s research scientists develop crime and loss control solutions, conducting over 45 real-world loss prevention research projects to date. For more information, visit www.lpresearch.org.

EDITOR’S NOTE: For complete survey results, please contact Beth J. Passarella at beth@echomediapr.com or 714-573-0899, ext. 26.

FOR IMMEDIATE RELEASE
Contact: Beth J. Passarella
Echo Media Group
714-573-0899, ext. 26
beth@echomediapr.com

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. The Return Rewards™ solution creates significant incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com

FOR IMMEDIATE RELEASE
Contact: Beth J. Passarella
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

“We are fortunate to have such a loyal and diverse group of clients,” said Hammond. “Eliminating fraud and its associated costs is and always will be among our highest priorities. As The Retail Equation grows and evolves, our core will not change. Our clients and their financial well-being will always be foremost in our continued innovation.”

About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. The Return Rewards® solution creates sizeable incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Beth J. Passarella
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

IRVINE, Calif. (January 13, 2008)—The Retail Equation, the industry leader in retail transaction optimization solutions, today announced the launch of the Return Rewards™ Dashboard, a software reporting tool that delivers retailers instant notification of the key performance indicators of incremental sales activity. The company’s Return Rewards solution generates intelligent incentives to buyers who are returning merchandise to keep them shopping after a return, enabling retailers to recapture sales.

For executives, the Return Rewards Dashboard provides retailers using Return Rewards with an up-front review of results, supported by thorough analysis, not just raw data, on the efficacy of the program. Users requiring greater detail can dissect the information by geography, concept, and store hierarchy to help retailers easily identify both high-performing and under-performing offers and locations in order to enact change.

“The Return Rewards Dashboard is a powerful marketing tool that visually demonstrates the revenue impact of Return Rewards,” said Tom Rittman, vice president of marketing for The Retail Equation. “For years, retailers have struggled to keep consumers in the store after making a return, and then struggled to better understand which of their targeted efforts are the most effective. As part of the Return Rewards solution, the Return Rewards Dashboard eliminates the guesswork by providing retailers with the exact information they need – from cumulative revenue to trend analysis – to make informed decisions.”

Unlike generic report generator tools, the Return Rewards Dashboard provides the quick company overview, as well as deep dive analysis and trend identification necessary to deliver actionable reports.

In addition to helping retailers distinguish the offerings and stores that are performing well, the Return Rewards Dashboard also provides up-to-date information that will help identify appropriate coaching and incentive opportunities for the retailer’s employees. Early and simple identification of top performing locations helps establish “best practices” to be passed on to those locations which are not top performers, yielding immediate turnaround opportunities.

Recent concerns over consumer spending means retailers will be competing more than ever before for sales. And, given that roughly seven percent of all retail goods are returned, a $1 billion retailer who correctly leverages the information in the Return Rewards Dashboard could see an incremental increase in its sales by as much as $10 million.

“Retailers work hard to earn loyalty in the form of repeat business from customers and being able to immediately understand which campaigns and offers are building that loyalty is critical,” said Rittman. “This kind of analysis can help retailers both large and small better manage their locations, their customer service techniques – and their profitability.”

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. The Return Rewards® solution creates sizeable incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com

FOR IMMEDIATE RELEASE
Contact: Beth J. Passarella
Echo Media Group 
714-573-0899, ext. 26
beth@echomediapr.com

About The Retail Equation

The Retail Equation, headquartered in Irvine, Calif., is the industry leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its software-as-a-service delivery enables retailers to achieve significant and measurable return-on-investment. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more. The Return Rewards® solution creates sizeable incremental sales at the return counter, while also building customer loyalty. Both Verify-1® and Receipt Verification™ prevent fraudulent and abusive returns, reducing return rates and saving millions of dollars annually for retailers. For more information, visit www.theretailequation.com.

FOR IMMEDIATE RELEASE
Contact: Beth J. Passarella
Echo Media Group 
949-486-8960, ext. 226
beth@echomediapr.com

About The Return Exchange

The Return Exchange, headquartered in Irvine, Calif., was founded in 1999 and leads the industry as a provider of intelligent solutions to enhance the return process for both the retailer and the consumer. Its Return Rewards software boosts store sales significantly while also building customer loyalty. Its return fraud prevention products save millions of dollars annually for retailer’s nationwide. For more information, please visit www.thereturnexchange.com

About AeA

AeA is the largest high-tech trade association in the United States and represents all segments of the technology industry. Our mission is to help our member companies grow and improve their respective business. Internationally, AeA represents 2,500 companies with 1.8 million employees. In Orange County and the Inland Empire, AeA represents 140 member companies with worldwide revenues of more than $8 billion, and more than 160,000 employees in the United States and globally. Information on the Orange County & Inland Empire Council can be found at www.aeanet.org/orangecounty

FOR IMMEDIATE RELEASE
CONTACT: Beth J. Passarella, 
Echo Media Group
(714) 573-0899, ext. 26
beth@echomediapr.com