RFID technology solutions are still in the early adoption stage within the retail sector, but successful pilots in the apparel and grocery verticals are raising awareness and interest in the impact the technology can have at an item level. Illustrating that interest, 79 percent of retailers surveyed place a high priority on in-store efficiency gains as a motivator for RFID implementation, according to Aberdeen’s
latest report “Item-Level RFID Tagging in Retail.”
With benefits such as faster floor replenishment, enhanced inventory accuracy, better location visibility, reduced theft, and spotlighted in recent pilot rollouts, many retailers are taking a second look at the benefits of using RFID technology at the item-level.
The RFID movement in retail seemed to lose steam after Wal-Mart backed off its aggressive mandate requiring all of their suppliers to ship their products with RFID tags at the case and palette level. However, it has recently gained momentum again, particularly in the apparel sector, when American Apparel paved the way two years ago with a monumental item-level RFID pilot program that now sets the bar for the future of retail.