New research measures impact of RFID in retail

Retailers could boost their sales by as much as 5.5% by using radio-frequency identification tags (RFID). That’s according to a research report, supported by GS1 UK and commissioned in partnership with ECR Community’s Shrinkage and OSA Group and produced by Professor Adrian Beck of the University of Leicester.

Adidas, C&A, Decathlon, LuluLemon, Jack Wills, John Lewis, Marc O’Polo, Marks & Spencer, River Island and Tesco participated in the research. They all achieved a positive ROI for their business as a result of using RFID. And they reported an increase in sales between 1.5% -5.5% through improved stock availability – contributing between €1.4 and €5.2 billion to their businesses. Inventory accuracy improved by over 50% with retailers reporting 93-99% accuracy with RFID. Six of the ten companies were able to reduce total stock holding between 2-13%.

Richard Jenkins, Head of RFID and Loss Prevention at Marks & Spencer, says: “'We were pleased to be asked to participate in such a comprehensive and thorough study into the state of RFID in retail today. This exciting technology innovation for retailers is often misunderstood and shrouded in mystery. Hopefully this new report will dispel some of the myths and provide valuable new insight to assist all of us that are on the RFID journey.”

John Fonteijn, Group Chairman from the ECR Community Shrinkage and On-Shelf Availability Group, comments: “As a technology, RFID has often struggled to live up to the hype surrounding its use in retailing, but as Professor Beck’s research shows, in the right environment, and by adopting a realistic and measured approach to its use, RFID now offers an attractive financial proposition to those retailers willing to invest.”