Retailers, RFID can boost your sales up by 5.5%
It's official! A recently published study has confirmed that RFID can boost sales and increase inventory accuracy.
A recently published study titled “measuring the impact of RFID in retailing: Key lessons from 10 case-study companies” showed that RFID can boost sales by up to 5.5% and increase inventory accuracy by 20 to 30%.
The study, which was sponsored by ECR Shrinkage and OSA Group and GS1 UK, was carried out in the UK by Adrian Beck a professor of Leicester University. Thought to be the first of its kind, it is based on the experience of 10 well known retailers including Adidas, Decathlon, John Lewis, Tesco, River Island and M&S.
Results that cannot be ignored
- An average improvement of stock accuracy from between 65% and 75% to between 93% and 99%.
- A stock availability which rose to 90%
- A reduction in stock levels of between 2% and 13%
- One company reported a 15% reduction in shrinkage
- One company also reported a reduction in labour costs of 4%
So why aren’t all retailers on this Earth using the technology?
RFID is still in the adoption stage of its lifecycle today, although it is accelerating rapidly, particularly in the retail sector.
Richard Jenkins, Head of RFID and loss prevention at M&S comments: “(…) 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.”
Why More Retailers Haven't Invested in RFID, RFID Journal
RFID tags can deliver boost to sales: study, Internet Retailing