How RFID is crucial for embracing the future of retail.

Checkpoint Systems is a client of Business Reporter.

When envisioning the future of retail, what comes to mind? Perhaps sleek online shopping platforms, revolutionary in-store interactions, or groundbreaking mobile applications? However, the true catalyst for digital transformation may be as uncomplicated as a tag.

RFID, or radio-frequency identification, is a form of wireless communication that utilizes radio waves to retrieve data without requiring a clear line of sight. While not a recent development, RFID plays a crucial role in paving the way towards the future of retail and can be effortlessly incorporated into your labeling system.

A single scan of an item’s distinct RFID inlay can offer a vast amount of data about the product, such as its origin, initial destination, current location, and purchase record. This unparalleled clarity enables retailers to meet and surpass evolving customer shopping behaviors.

Advancements in technology have increased customer demands. When customers are searching for a specific garment in a specific size, they anticipate that the retailer will have knowledge of its availability and location.

Using RFID technology provides great benefits for retailers as it allows them to have precise knowledge of their inventory and its location. If a particular item is unavailable in one store, it may be available in another. With a solid infrastructure in place, retailers can even offer convenient services like quick pick-up at a nearby store. All of these services rely on accurate data, which is typically gathered through the use of RFID.

Retailers using RFID tags on their products can achieve up to 99% accuracy in their inventory without having to manually count stock. Having excellent inventory management is not only important for generating revenue and providing good service, but it is also crucial for modern retail strategies like omnichannel.

McKinsey’s data reveals that a majority of consumers, ranging from 60 to 70 percent, desire a smooth “omnichannel” experience while transitioning between various devices and in-store purchases. By utilizing RFID technology, retailers can achieve the necessary inventory precision to satisfy contemporary consumer demands for services like online purchases with in-store pickup. Furthermore, omnichannel is only the beginning of enhancing the convenience of shopping experiences.

The future of retail is “frictionless” shopping. A study by PwC found that half of shoppers would choose to use frictionless retail options if available. By incorporating RFID technology into clothing, items can be quickly scanned and customers can have a seamless and hassle-free shopping experience without having to scan each individual item.

Retail brands are now placing a strong emphasis on enhancing the in-store shopping experience in order to stay ahead in the ever-evolving world of retail. This involves creating a luxurious and seamless shopping experience, which is made possible by utilizing RFID technology.

When paired with compatible hardware, RFID offers an additional level of security and expands the functionality of your labels, ultimately increasing their worth and potential for profit. With this technology, you have the freedom to push the limits of retail displays, create more welcoming spaces, and enable product engagement without the risk of theft, all with a single label.

Incorporating RFID technology into your theft prevention plan allows you to collect valuable information on areas where theft frequently occurs and specific items that are being targeted. This information can be used to strategically place RFID hard tags as a visible deterrent to enhance security measures, if desired.

The use of RFID as electronic article surveillance (EAS) has greatly evolved. By utilizing advanced technology like Checkpoint’s SFERO modular system, retailers can now have open and unrestricted store entrances while still maintaining full EAS protection. With options like our dual-technology RFID and RF labels, retailers can continue to use their traditional RF gates for loss prevention, providing both inventory advantages and business insights without the need for new loss-prevention equipment.

RFID plays a crucial role in hassle-free returns. By utilizing this advanced technology, retailers can swiftly verify a product’s complete purchase history with just one scan, effectively preventing fraudulent returns and wardrobe items. Additionally, customers have the flexibility to return items at any store rather than being restricted to the original purchase location.

The authentication aspect of RFID could also allow retailers to own the resale of preloved goods as part of retail’s rapidly rising circular economy. Goods can be authenticated using UHF RFID, which is accessible to retailers only, or NFC RFID, which is accessible to customers via smartphone. The latter is a luxury brand favorite due to its encrypted, encoded chip data and authentication options.

Although implementing RFID may appear complicated, my team at Checkpoint and I are experts in tailoring each rollout to fit the specific requirements and resources of every retailer. The implementation of RFID can be executed seamlessly and often results in a return on investment within 12 to 20 months, depending on the size and intricacy of the venture. In fact, it can be as straightforward as programming a batch of stickers and placing them on product labels in the store. Since every business is unique, we approach each rollout as a distinct project.

Regardless of the method chosen, it is evident that RFID is a highly accessible and adaptable technology for retailers to incorporate into their digital transformation. It is not a matter of if you will embark on this journey, but rather when.

Discover the potential of retail and begin your RFID experience with Checkpoint now!

Source: independent.co.uk