RFID item-level growth increasing in retail sector

According to a recent report from ABI Research, RFID item-level tagging is being deployed very rapidly in apparel and footwear markets.
image
By Modern Materials Handling Staff
February 07, 2011 - MMH Editorial

According to a recent report from ABI Research, RFID item-level tagging is being deployed very rapidly in apparel and footwear markets. Item-level passive UHF tags now make up an increasing share of the total world market for RFID tags. The firm forecasts that more than three quarters of a billion RFID tags will be used in global apparel markets in 2011.

“RFID systems allow apparel retailers to get a better handle on inventory, reducing costs and preventing out of stock situations that result in loss of sales,” says ABI Research principal analyst Bill Arnold. “The growth in retail item-level tagging is hAuge, both in shipments and in total spending. The average growth rate is close to 60% for the next three years. In fact, the number of tags that will be used for retail ILT in apparel alone is likely to exceed the total number consumed over the past five years for all RFID markets combined.”

Major retailers such as Macy’s, JCPenney, and Wal-Mart are leading the charge to make RFID systems commonplace in the retail environment.

Typical ROI times for such RFID deployments are only three to six months, but, says Arnold, “The state of the global economy is still creating serious delays in getting money allocated to retail RFID. Executives are still very uneasy about business conditions and availability of credit, and while ILT systems are technically scalable right down to small businesses, credit will be the big limiting factor for smaller independent stores.”

A related use of RFID in retail is in EAS (Electronic Article Surveillance) systems: loss prevention tags containing only one bit of data. This segment is led by Checkpoint and Tyco Retail Solutions.

Research director Michael Liard adds, “Retail adoption of RFID at the item level parallels the course barcodes took about 30 years ago. The main difference this time is that retail department stores, not grocers, are leading the charge.”

ABI Research’s new study “The Retail Apparel RFID Item-Level Tagging Market” provides current analysis and a five-year forecast of UHF adoption at the item-level in the retail apparel market. It discusses market drivers and inhibitors, along with a summary of the key RFID solution providers and product suppliers.

RFID update
Seven years after the Wal-Mart RFID mandate, RFID is alive and growing in the supply chain.



Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Diesel prices continued their recent stretch of gains with a 3.6 cent increase this week to $2.936 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

TSA has reaffirmed its March 9 general rate increase (GRI) of $600 per 40-foot container (FEU) for all shipments, and lines have also filed a previously announced April 9 GRI in the same amount.

Article Topics

News · RFID · Technology · Automatic Data Capture · Retail · ADC · All topics

Comments

Post a comment
Commenting is not available in this channel entry.