RFID’s renaissance in retail
A new era brings a familiar technology to the forefront for nongrocery retailers.
A new era brings a familiar technology to the forefront for nongrocery retailers.
Retail is once again entering new territory as the COVID-19 pandemic changes the game. Retailers now have near-term, immediate decisions to make, including how to bring back and redeploy the workforce and how to protect the health and safety of shoppers and employees. Beyond these immediate concerns, retailers have an unprecedented opportunity to reimagine store operations. Consumers are more receptive than ever to changes that can make the in-store experience safer, more accessible, and more convenient.
Responding to shifts in consumer behavior, retail supply chains and stores have produced a flurry of curbside operations, “dark stores”—physical locations that are closed to customers and serve as fulfillment centers or distribution points—remote-selling options, and other innovations. Stores will inevitably serve new roles in the “next normal” shopping journey, and retailers will be (and already are) looking for ways to improve operations and reduce costs. In this new era, we believe radio-frequency identification (RFID) has the power to unlock up to 5 percent top-line growth from better stockout management and shrinkage reduction as well as to achieve a 10–15 percent reduction in inventory-related labor hours.
A new era revives a familiar technology
Stores no longer play an occasional supporting role in the omnichannel shopping journey. As retailers try to shift more omnichannel fulfillment to offline channels—often the most feasible and profitable last-mile fulfillment option (Exhibit 1)—stores and their supply-chain tethers are retaking center stage in the evolving customer journey.
