Retail Analysis
and enhance the overall customer journey. The report also found that 48% of UK and US retail decision-makers experience that out- of-stock items are the primary challenge for retailers in the current climate. RFID technology empowers retailers like never before, all while advancing shopping into an elevated and positive experience.
Deciding To Implement RFID Shoppers are starting to demand an advanced generation of services and the entire retail sector is adapting rapidly as 93% of US retailers and brands are currently implementing RFID technology, according to Accenture. Cooper mentioned that George Clothing found a difference
between physical stock counts and what the system stated there should be. Consequently, the company witnessed empty carts and customers leaving the store without making a purchase after enquiring about an item they couldn’t find in-store. However, systematically, that item was listed as available and on the floor, ready to be purchased. The H&M Group began implementing RFID solutions across
5,000 stores globally in 2018. Product Owner of In-Store Stock Optimisation, Mattias Sjöstedt, explained that this was mainly due to the inaccuracy of stock levels in stores. He further highlighted the importance of customers being able to find the items they are looking for to achieve sales. Johan Stenström, Supply Chain Developer at Stadium – a
sporting goods retailer with over 150 stores, supports Sjöstedt’s inaccurate inventory findings. However, Stenström found that Stadium was measuring financial accuracy rather than inventory accuracy, dropping its accuracy count from 99% down to 70%. Stenström mentioned that implementing RFID technology was a game-changer for Stadium. Recalling its very first sale, he said: “The very first day, the first hour of our pilot. I was monitoring
the situation with an RFID device in hand. A customer is looking for skates. Our staff cannot find them in the store, but it is in the system, so naturally, they tell the customer that it has to be in the back and off they went to go find these skates. “So, I thought, “great, now is the opportunity to test the RFID
reader”. The customer had the skates in her hand but wanted a different size. I scan the price label and I see the size was available on the sales floor, so I select the guider to locate it and it starts beeping. I found it on the other side of the aisle. “By the time the customer had paid and left, the staff came back
to say they couldn’t find the item.” For all the benefits RFID technology has in the supply chain, it also allows for an improved in-store experience for customers.
Influence Of The Pandemic Retail endured a significant setback in 2020, and consumer behavior transformed exponentially. Customers’ expectations increased after the pandemic and left no room for error for their chosen retailer. If a retailer couldn’t satisfy customers’ demands, they would simply opt for another supplier. Availability and the accuracy of stock are therefore critical to ensuring that a customer completes their purchase. Sjöstedt mentioned that “COVID was a catastrophe for
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everyone. Without RFID and having that level of accuracy, we would have really struggled to recover once our stores reopened. When they opened and people came back, thanks to RFID we immediately knew what we had and what we could sell so we were able to bounce back quicker”. Stenström adds that with the limitations of the number of people
allowed in-store at Stadium, as well as the implementation of social distancing, the company’s RFID solutions ensured that the people in the store could find exactly what they wanted in a fraction of the time without having to be in contact with a staff member. When Dean Frew asked the panel for advice to retailers looking
to implement RFID solutions, Cooper, Sjöstedt, and Stenström agreed on the following: • A pilot provides you with valuable insight into what the problem is you want to resolve and what the opportunities are to future- proof your organisation
• Measure, measure, and measure every KPI during the pilot • It is all about the finer detail. Look at your data quality and accuracy before you implement the solution However, a lot of retailers are hesitant due to the cost involved in
updating your entire system. Cooper further mentions that retailers should take a step back and establish what is more important to them: saving money or increasing sales and profits. “There is a cost to the solution, but we [George Clothing] will be saving millions of pounds on the cost of goods”. As a result of implementing RFID technology, George Clothing saw an increase in sales after two weeks.
Preparing for the Future The retail sector is becoming exponentially digital in response to the current climate, which has steered the demand for a more convenient customer journey. However, as the industry evolves into a new future, more technologies will be introduced to meet customer demands as they continue to change. The key to overcoming these challenges is having a solid foundation of infrastructure so item-level RFID can be implemented in order to have a significant impact on inventory and the serialisation of products.
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