Executive Briefings

Three Tipping Points for RFID in the World of Fashion

In recent years, a growing number of retail RFID use cases have clearly demonstrated the benefits of being able to track inventory at the item level, leading to better shelf replenishment and fewer out of stocks. Many retailers quantify the benefits of reducing out of stocks not just at the item level (potential lost sales) but at the transaction level, since retailers closely track the number of items that comprise the average transaction (e.g. 3.6 items/sale). Using that example, an out-of-stock item (especially in a core category such as denim) could result in lost sales of an additional 2.6 items that were to be purchased with it.

Many fashion retailers, however, aren't too concerned with out of stocks; in fact, their goal is to "sell out" certain items, creating scarcity and cachet for their brand. They have ignored the replenishment benefits of RFID simply because replenishment items comprise a small percentage of their overall business. But recent retail trends are creating three new tipping points for RFID in apparel and fashion: omnichannel fulfillment, the addition of "up market" merchandise, and national and global retail store expansions.

Read Full Article

Many fashion retailers, however, aren't too concerned with out of stocks; in fact, their goal is to "sell out" certain items, creating scarcity and cachet for their brand. They have ignored the replenishment benefits of RFID simply because replenishment items comprise a small percentage of their overall business. But recent retail trends are creating three new tipping points for RFID in apparel and fashion: omnichannel fulfillment, the addition of "up market" merchandise, and national and global retail store expansions.

Read Full Article