Using RFID more frequently in retailing could boost sales, inventory tracking and accuracy, but many companies have been slow to adopt the technology, according to a panel of retailers at a recent convention.
Radio frequency identification tags communicate with a centralized system to track items faster and more accurately than bar codes.
The senior vice president of operations at one major clothier said that implementing RFID technology led to a 1 to 2 percent increase in sales across the company. It allows them to open each day “ready for customers” because they know that the sales floor is properly stocked, according to an article on Luxury Daily’s website.
However, RFID can be more costly than other technologies and requires additional personnel to manage it. There are many logistical details to work out, too.
Where RFID is really gaining traction is for high-margin, high-cost items. RFID definitely has merit. To use it most effectively, retailers have to make sure that their infrastructure is clearly defined and well laid-out so that RFID can easily be tracked through the system.
Source: Luxury Daily, May 2012