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LCWaikiki, one of Turkey’s largest clothing retailers, uses RFID technology to track the company’s individual garments in Istanbul’s banner store, and plans to complete the installation of RFID systems in another 50-60 branches within the next six months. LCWaikiki uses Gen2 passive UHF RFID tags combined with EAS functions for inventory management, checkout, automatic replenishment and anti-theft.
LCWaikiki uses RFID-EAS tags in stores where the EAS system has been installed, but may only use RFID tags for inventory management and anti-theft in new stores (without EAS facilities). LCWaikiki currently opens a new store approximately every 10 days, and the company has more than 200 stores in Turkey. Alien and its integration partner STS Technology provided and implemented the RFID system for LCWaikiki.
When a piece of clothing is sent from the stock room to the store, a fixed RFID reader passing by on the way reads the clothing tag. When the clothing is sold, the cash register reads the RFID tag to record the transaction. The RFID reading event triggers the POS system to delete the sold garments from the inventory system and automatically generate a replenishment order.
Now, LCWaikiki clothing from the inventory room to the store is 70% faster, and inventory time is 60% less, according to Alien.
“Inventory replenishment is a big problem, and the RFID system automates the entire process,” Crocker said. “The application of this system is not complicated and can be adopted by any retailer in the world.”
A report released by the RFID Research Center of Arkansas University last week stated that the stable high read rate makes single-product tracking in the apparel and footwear industries a reality.
RFID readers can also monitor clothing to prevent theft, according to Crocker, but LCWaikiki did not install the reader for this purpose. The company wanted to use the existing EAS system. LCWaikik has designed RFID-EAS tags, and every new piece of clothing will be labeled.
This system has been in operation at LCWaikiki’s Istanbul headquarters for three months. According to Crocker, LCWaikiki plans to install this system for another 50-60 branches and eventually spread it to all branches. LCWaikiki’s 2007 turnover was US$ 484 billion, and the company’s fiscal revenue growth rates over the past three years were 45%, 43% and 35%, respectively.
LCWaikiki’s RFID application has further promoted the RFID item-level application in the clothing industry. Earlier this year, American Apparel announced the use of RFID systems in at least 17 stores, and Spanish children’s clothing manufacturer Bóboli applied RFID single-product tracking systems in its distribution centers.
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