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Taracci, a men’s clothing store in Forum Nacka shopping mall on the outskirts of Stockholm, is the first retail store in Sweden to adopt RFID/EPC.
Customers only need to place a package of goods they have purchased on the counter, and the payment is completed instantly. But the huge advantage that the store really gains is that all time-consuming administrative work has been reduced. The company estimates that the cost they paid for RFID/EPC will be recovered within a year.
When a customer in Taracci prepares to pay and puts the product on the counter, the RFID reader placed under the counter will automatically scan it. The reader can read RFID tags within two meters. The staff only needs to help the customer to put the goods into the shopping bag, press a button on the cash register screen, all the goods are settled, and wait for the customer to pay.
Many customers were very surprised, scratching their heads and asking: “How did you do it?”
“Our RFID system allows customers to pay much faster than regular checkout counters, but this is not the main reason we introduced RFID. We hope that everything is under control and administrative work is simpler and more efficient.” said Mats Tornard, partner of Taracci .
After the introduction of RFID, one of the benefits is that inventory is faster and more convenient than before, which avoids the loss of sales due to insufficient inventory. The number of goods in this shop at any time is between 1500-2000. It is necessary to count all of these goods during the inventory. It used to take a whole day to count, and there may be errors. Now it only takes 5 minutes at most, and the error rate is also high. Down to a very low level. We only need to walk around the store with a portable computer with an RFID reader, without even seeing the goods, and the inventory work is complete. This also makes weekly inventory possible.
RFID has also greatly improved distribution management. Because of the decline in store inventory levels, the corresponding packaging costs are estimated to be reduced by at least 20%. Since the style, size and color of the goods in the box can be detected without opening the box, the speed of shipping and receiving is greatly accelerated.
RFID can also be used as an anti-theft alarm. Because the alarm is installed to automatically detect whether the clothes have been paid, there is no need to install a monitoring system, which saves a lot of cost.
Yes, RFID systems are indeed much more expensive than traditional checkout systems, but the difference between them is obvious. The advantages of RFID prove that advanced technology is sufficient to compensate for the price difference between the two. Each label only costs a few cents, and once more is used, the cost will drop.
The extended application of RFID/EPC also has the following several solutions. One is to install an RFID reader behind the full-length mirror to automatically tell customers the detailed information of the clothes. The same application can also be used to analyze consumer behavior and choices, so as to provide more consumer-friendly clothing.
Another factor for the company’s adoption of RFID is its strategy of continuing to expand. They hope that all newly opened stores will use RFID systems in the future. The reason for their adoption of the GS1 standard is that they do not want to be hindered by regional solutions.
“RFID/EPC has so many potential advantages. It will help the company in many ways that we can’t even think of. It won’t be long before we will leave our competitors far behind in using this technology.
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