How Retail RFID Technology Can Transform Your Business
3 Min Read
Digital transformation and changing consumer behaviors have driven the retail industry to adopt critical technology like Radio Frequency Identification (RFID). SML believes the Gartner® Hype Cycle™ for Retail Technologies, 2023 highlights the significant role of RFID, particularly noting that item-level RFID in stores is approaching the Slope of Enlightenment. With market penetration currently between 5-20%, Gartner observes that “Item-level RFID solutions can enable better business outcomes in the retail store through inventory accuracy, cycle counts, efficient store fulfillment of online orders, faster replenishment, improved fraud and loss prevention, and increased customer engagement.”
What does RFID stand for in retail?
In the retail sector, RFID stands for Radio Frequency Identification. This technology is used to identify and track tags attached to objects automatically. In the context of retail, RFID tags are attached to merchandise, allowing for a variety of applications that significantly enhance store operations and customer experience.
The return of brick and mortar retail
With the easing of pandemic-related restrictions, retailers have adapted rapidly to Buy Online Pick Up In Store (BOPIS) and omnichannel retail channels. These selling strategies have proved to be incredibly beneficial as they leverage the existing inventory in physical stores to drive increased customer traffic and eliminate many of the last mile shipping costs associated with online purchases. As customers once again have the opportunity to browse in physical stores, retailers can capture incremental sales from impulse buys and complementary items that customers purchase when picking up their orders.
Retail RFID technology has seen substantial investment over recent months, as retailers increasingly turn to online and hybrid models to meet customer expectations. The implementation of RFID technology in physical stores is intrinsic to a fully functional retailer, providing improved customer experiences, and bolstering employee effectiveness.
The rise of RFID technology
Inventory accuracy and stock levels throughout an organization is pivotal to the foundations of sales growth and profitability for a retailer. RFID is simply the most effective tool available to keep inventory accurate in large scale retail enterprises. An accurate, RFID enabled item-level inventory management creates efficiency throughout the entire supply chain, transforming the role of store associates in retail stores as they are freed up from inventory related tasks. One of the most impactful advantages of RFID implementation is the reduced time employees spend taking stock count and managing the stock: an average increase in speed of 20 times a manual count process! RFID technology increases inventory accuracy at the item-level routinely up to 98%, a substantial improvement from manual stock counts and with just a fraction of the disruption and labor effort required.
Modern customers now demand a flawless and personalized experience. Enabling employees the time to focus on these customers rather than inventory management is pivotal to retailers. Retail RFID technology can ease this challenge and create a smooth transition through the supply chain, ultimately increasing customer satisfaction and experience. The deployment of RFID technology in fashion based on flow of stock, finished goods, stock level, and time-efficiency significantly impacts both efficiency and operational effectiveness. When customers can depend on their orders being fulfilled consistently and count on available in-store employees to provide service, they develop brand loyalty and provide a base for consistently reliable sales.
The future of RFID technology in retail
As we move into a new era of retailing, a significant challenge for retailers continues to be managing their inventory and stock. However, the implementation of item-level RFID technology provides the necessary support for retailers to win in this aspect of their business. As a result, we’ve seen more retailers turning to RFID technology to boost their retail inventory efficiency and modernize their approach to inventory management.
Item-level RFID inventory management solutions give retailers an advantage over competitors by providing better insight into their product availability. What’s more, retailers can leverage the technology to capture immediate sales and create long-term relationships with customers by implementing the technology before restrictions are lifted.
As the world continues to work towards the ‘new normal’, it is more important than ever for retailers to consider what the post-crisis landscape will look like and prepare for ongoing changing customer habits. Implementing RFID technology allows retailers to compete confidently in the near and long term as they respond to permanent changes in customer shopping patterns and expectations. This provides increased profitability immediately as restrictions are lessened. In the distant future, retail grows and emerges from the pandemic ready to capitalize on the development of these additional sales channels.
SML’s Role in Retail RFID Solutions:
At SML, Item-Level RFID technology is at the forefront of transforming retail operations. SML provides comprehensive RFID solutions that include high-quality RFID tags and labels, advanced RFID encoding solutions, and powerful Clarity® software that together drive unparalleled inventory accuracy and superior customer service. SML’s solutions are designed to be easily integrated into existing retail systems, supporting retailers in their journey towards digital transformation and helping them achieve a competitive edge in today’s dynamic retail environment.
As we move into a new era of retailing, a significant challenge for retailers continues to be managing their inventory and stock. However, the implementation of item-level RFID technology provides the necessary support for retailers to win in this aspect of their business. As a result, we’ve seen more retailers turning to RFID technology to boost their retail inventory efficiency and modernize their approach to inventory management.
Item-level RFID inventory management solutions give retailers an advantage over competitors by providing better insight into their product availability. What’s more, retailers can leverage the technology to capture immediate sales and create long-term relationships with customers by implementing the technology before restrictions are lifted.
As the world continues to work towards the ‘new normal’, it is more important than ever for retailers to consider what the post-crisis landscape will look like and prepare for ongoing changing customer habits. Implementing RFID technology allows retailers to compete confidently in the near and long term as they respond to permanent changes in customer shopping patterns and expectations. This provides increased profitability immediately as restrictions are lessened. In the distant future, retail grows and emerges from the pandemic ready to capitalize on the development of these additional sales channels.
SML’s Role in Retail RFID Solutions:
At SML, Item-Level RFID technology is at the forefront of transforming retail operations. SML provides comprehensive RFID solutions that include high-quality RFID tags and labels, advanced RFID encoding solutions, and powerful Clarity® software that together drive unparalleled inventory accuracy and superior customer service. SML’s solutions are designed to be easily integrated into existing retail systems, supporting retailers in their journey towards digital transformation and helping them achieve a competitive edge in today’s dynamic retail environment.
To find out how RFID technology could transform your retail operations, contact SML’s retail RFID experts today.
