KWI goes Pro with Cooper and Kershaw at NRF! ... more

Beyond Summer Sales ... more

MySQL is Here! ... more

The Max-Wellness Breakthrough ... more

Short Cuts – Fast, Helpful Hints ... more

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Crowd Control: Big Turnout for KWI/Zellman Group

at NRF Loss Prevention ShowAdded attractions: The Lakers' Michael Cooper and the Dodgers' Clayton Kershaw!

At the recent NRF Loss Prevention Show in Los Angeles, CA, a deceptively quiet opening quickly gained momentum as NRF-LP attendees made a beeline for the KWI booth. Even with ten Zellman/KWI representatives on hand to speak with every visitor, it was a challenge to keep up with the crowd.

With retail crime on the upswing during these recessionary times, KWI's extensive LP services are answering a huge demand. Major companies entered the booth with clear intentions to conduct business, not just gather information. It was exciting to close conversations with visitors anxiously asking, "When can we get started?"

Our first day concluded with an amazing event: former LA Lakers' star Michael

Cooper in the booth signing photos. Michael was extraordinarily engaging with our guests; his quick wit and trivia questions created such fervor that the crowd didn't want it to end.

The excitement continued with our evening event featuring the Dodgers' starting pitcher and rookie sensation, Clayton Kershaw, in a private reception. KWI clients found the ambience perfect to meet this sports celebrity and engage with our group on a social basis. Relationships were strengthened, friendships made…and autographed baseballs handed 'round!

It seemed like the day could not be topped. But Tuesday proved equally fast-paced, with many visitors and serious interest in our programs. Connections were made or renewed with: Kroger's, T.J. Maxx, JC Penney's, Northface, Vons, Urban Outfitters, Aeropostale, to name a few. Our LP team is looking forward to new partnerships and friendships!

For more information, please contact Janice McCort, CFI, Director of Business Development, The Zellman Group, LLC, at jmccort@zellmangroup.com or (516) 474-4070.

July is Sales Month - So What?

July, already deep into summer, is when many retailers get deep into discounting their warm-weather inventory.

But in an economy where consumers are already sated by great deals and in a year when it seems that sales have been running non-stop, how do you get beyond the deep discount mentality and make your store the place for "destination shopping"? Consider a few suggestions from the KWI idea file:

Get Social! 33% of respondents say they are communicating with family and friends through social networking more this year than last, according to a survey from The University of Maryland School of Business. Why not think about prospecting customers along social lines as well? It's easier to convert friends of current customers than people with no social connection to your brand. Pass-along discounts, bring-a-friend events and similar social marketing can help to build your network of loyal shoppers. Contact our CRM team for programs you can implement.

Be Talkative! Fredrick's of Hollywood staged a comeback utilizing two strategies. First, they broke down the silos that existed between their channels, to create consistency in purchasing and marketing messages. Second, they devoted time, energy and funds to a comprehensive analysis of the company's core and most profitable customer. Targeting efforts toward this customer led to the launch of their new seductive line of special-occasion lingerie. "If you aren't looking at and talking to your consumer then your company is talking to itself," said Linda LoRe, president and CEO, at a conference earlier this year. Use KWI's advanced reporting options to follow her example and get to know your customers even better.

Think Small! Is this the start of a mini-trend? Big box stores are opening mini-versions in hopes of creating fresh consumer sizzle. It's an idea that borrows from the success of "pop-up stores" - temporary boutiques that spring up to offer a special design line on a very limited basis, creating a sense of urgency and exclusivity.

Office Max, Wal-Mart, Radio Shack and Best Buy are among the retailers exploring the small store format, which offers a sense of "new" without big investments in inventory, employees and retail space. For consumers, these types of stores are more convenient, less time-consuming and more personal. If you want to create a specialized boutique or pop-up within your operation, KWI can help you turn on a dime to set up the support system.

Let Service Set You Apart A recent New York Times story observed that "In some ways, retailers are going back to their roots, evoking the corner store. At many new stores, personalized service is being emphasized, like explaining the features of a product."

While affordability will continue to be the lens through which consumers view potential purchases, that is not the only decision driver. A return to emphasis on customer service and creative new ways to capture interest are signs of the times -- and positive ones at that.

For more information on the full scope of KWI services to build your business, please contact Dan Markowitz, CFO, at danny@kwi.com or (516) 621-2400, ext. 305.

History is Made!

KWI's MySQL Database UpgradeAbout a year ago, we announced the biggest project in KWI history: upgrading the database technology that drives our Back Office system to MySQL. Well, it took a bit longer than planned to work out the final kinks, but we are very happy to report that as of May '09, the project is officially "live". Two KWI Back Office customers have been successfully converted to MySQL and we have embarked on an aggressive program to convert the rest by year's end.

Our investment of time spent preparing the environment has paid off in very few surprises thus far – a tribute to our dedicated migration team and the dozens of supporting players throughout KWI.

Many short- and long-term gains will result from this project, including:

�● Better performance (depending on program, up to 10x faster)�● Better reliability (improved program interface, data integrity, transaction

logging)�● Integration with upcoming reporting tools (users will be able to customize

their own reports)�● Real-time data replication, active-active operation between data centers�● Load-balanced, high-availability infrastructure

First released in 1995, MySQL is an open-source database management system (DBMS) that has proven to be a hot market commodity. It was acquired last year by Sun Microsystems, which was then acquired by Oracle. KWI couldn't be happier with this turn of events – Sun Microsystems is our primary infrastructure vendor and a huge contributor to open-source software, while Oracle is the current industry leader in enterprise database technology.

Our project timeline calls for all clients to be converted in time for KWI's annual year-end moratorium on high-risk system changes. We look forward to executing a seamless migration for every customer and creating a stable, top-performing environment for this year's holiday season and beyond. This project is only the beginning – starting in 2010, we'll be executing a virtually endless list of

improvements to take advantage of our new database technology and literally transform the KWI Back Office system into the best of all possible worlds.

For more information regarding MySQL and KWI's database migration project, please contact Mike Ruvolo, Chief Technology Officer, at mruvolo@kwi.com or (516) 621-2400, ext. 322.

Max-Wellness: Taking Health & Beauty to the Max

Whoever said there's nothing new under the sun didn't consider Max-Wellness. This brainchild of Michael Feuer, a founder of Office Max, and Jared Florian, a successful catalog entrepreneur, takes the health and beauty business in an exciting new direction.

The concept: Max-Wellness is a mini superstore featuring all of the lotions and potions typically found in drug stores, combined with a myriad of products, both basic and

unique, to help people live well and stay well. Max-Wellness will "add drama, theater, organization and educational information" to the category, "bringing products to life by translating what they are into how they can provide a solution."

To fulfill that vision, Max-Wellness will be staffed by trained personnel who provide answers to consumers' healthcare questions, using state-of-the-art technology to access information. Associates will electronically provide solutions in seconds, creating an environment where Max-Wellness will quickly be recognized as the go-to store for better living.

With such advanced technological ambitions, Max-Wellness needed an exceptional support team. After competing against some of the top companies in the industry, KWI is proud to have been selected as the service provider for Max-Wellness, furnishing an end-to-end solution that includes POS and Back Office systems as well as Merchant Services credit card processing.

With their start-up plans well underway, Max-Wellness will be opening prototype stores in the Midwest and Southeast in Fall 2009. In 2010, they anticipate a rollout of 10-15 new stores, eventually ramping up openings to 30-50 stores per year. They will also be marketing products through their Internet and Catalog channels. The company is headquartered near Cleveland, Ohio.

The Max-Wellness product line will feature a wide array of products, including specialty and little-known brands. In addition to providing traditional supplements, their matrix will include sports nutrition, vitamins, health and beauty care products, personal healthcare items, homeopathic and self-care items. A full pharmacy section will be included in select stores. Some vendors will

send merchandise directly to the stores.

"The KWI team is excited to be involved in this leading-edge retail venture," says president Sam Kliger. "We look forward to a long and healthy relationship with Max-Wellness."

For more information, please contact Gary J. Brill, VP of Business Development, at gary@kwi.com or (516) 621-2400, ext. 325.

This Month’s Short Cuts

Time-saving tips and ideas that are right on the money – from the staff of KWI.

1. KWI Merchant Services Tip of the Month … from David Drucker and Phyllis Gricco

Is Your Account Maintenance "Degrading"?

Have credit card associations increased your rates without notification or proper justification? Have they introduced new regulations without advance notice? These practices, which negatively affect your service or increase your cost,

are known as merchant account degradation.

The key to self preservation is not letting your merchant account degrade in the first place. Here are some ways you can maintain an optimum merchant account.

1. Carefully examine your monthly merchant account statement and have all ambiguities clarified by your account executives.

2. Merchant service providers are required by the law to inform clients of any changes before introducing them in their accounts. These notifications should be prominently mentioned in the front page. Always make sure to read this information.

3. As you must know, there are as many as three different discount rates that you may be charged to process your transactions. Keep a careful tab on these discount rates to make sure that your transactions are running through the lowest qualified rates.

Keep a careful eye on your merchant account to protect your profitability.

To learn more about account maintenance, please contact David Drucker, President, KWI Merchant Services, at ddrucker@kwi.com or (516) 621-2400, ext. 720.

2. CRM Tip of the Month … from Jubin Thomas, CRM Services Manager

Thank you. Sort of.

Many retailers wonder why their customers don't return for subsequent purchases. Actually, many retailers think they have a great return customer rate when in fact they truly do not (but that's a tip for another month). What makes for a great "repeat" incentive?

Our research into customer retention reveals that far too many retailers impose restrictions on their gratitude. "We thank you for your purchase. Please come back, and here's $10 off your next purchase, as long as you spend over $100 again!" Okay, your marketing copy would probably be better, but that's how it sounds to the customer. Imposing such restrictions only deters subsequent purchases and takes away from the perception that your gratuity is sincere.

For one of our clients, who tested a no threshold offer, the results were remarkable:

�● About half of the respondents took advantage of the offer.�● Margin for the customers who responded was greater by three million

dollars, as compared to their 'best customer list'.

Here's to cultivating a greater customer database! Have a great summer.

To learn more about retention programs that work, please contact Jubin Thomas, CRM Services Manager, at jthomas@kwi.com or (516) 621-2400, ext. 367. 3. LP Tip of the Month: from Kim Woo, CFI, Director of Loss Prevention - West Coast, The Zellman Group, LLC

Shoplifting Prevention 101: Part One

Shoplifting, defined as taking merchandise offered for sale without paying, is criminal! It's also widespread. According to the National Association for Shoplifting Prevention, more than $25 million worth of merchandise is stolen from retailers each and every day. That's a huge part of retail shrinkage.

No matter how big or small, all types of retailers are susceptible to the growing problem of shoplifting. Our three-part series will help you identify shoplifters and shoplifting methods, create a less attractive environment for shoplifters, and learn how to implement shoplifting policies and procedures that protect your store against theft.

Shoplifter Types Shoplifters can be placed in one of two categories, professional and amateur. While both groups can be quite skilled at thievery, professional shoplifters steal to make a living and may use force or intimidation. The non-professional shoplifter

may be easier to spot.

Shoplifter Methods Many of these thieves work in groups of two or more to distract the sales staff while they pilfer. Shoplifters learn to take advantage of busy stores during peak hours, or they may hit at times when employees are less alert, such as opening, closing and shift changes.

Hiding merchandise is the most common method of shoplifting. Items are concealed in the shoplifter's clothing, in handbags, strollers, umbrellas or inside purchased merchandise. Bold shoplifters may simply grab an item and run out of the store. Other methods include price label switching, shortchanging the cashier, phony returns and other deceptive actions.

Next month, we will discuss how you can spot the shoplifter.

For more information on shoplifting prevention, please contact Kim Woo, CFI, Director of Loss Prevention, West Coast, at kwoo@zellmangroup.com or (516) 403-2442.