A survey by GS1 UK has found that over 25 per cent of the UK’s top retailers, including Marks and Spencer, Tesco, and Asda, are already using RFID (radio frequency identification) tags in their stores, while another 20 per cent are trialling them.
According to the survey respondents, inventory accuracy was one of their main drivers in adopting RFID, while other reasons listed included stock visibility and availability, loss prevention, supply chain automation and innovation.
Using RFID typically allows retailers to cut their out-of-stocks by up to 50 per cent, and see an 80-90 per cent time saving for stock management.
RFID tags mean that retailers can identify every piece of merchandise they have in every retail stock location, right across the supply chain. GS1 says that its discussions with UK retailers reveal that on average, this increases inventory accuracy from 63 per cent to 95 per cent.
IDTechEx’s most recent research on global usage of RFID shows that 10.4 billion tags are expected to be sold in 2016. In the fashion world along, RFID rags are expected to reach 4.6 billion this year.
Andy Robson, Supply Chain Solutions Manager at GS1 UK commented, "The growth of ecommerce and globalisation of the retail supply chain has emphasised the value that RFID technology brings to the retail industry.
"With the visible, accurate and real-time stock information it provides retailers, it’s an essential step for them to take to provide the seamless experience their customers expect today, both online and in-store."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.