Subscribe to our free, weekly email newsletter!


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.
By Modern Materials Handling Staff
February 07, 2011

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 Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

The company's third robotics production facility will serve North America, where the United States is ABB's largest market with $7.5 billion in sales.

This white paper outlines significant challenges facing businesses today and discusses how they can be addressed through more effective materials handling processes and equipment.

PMMI study examines packaging challenges prompted by growing U.S. e-commerce market.

Supply chain solutions provider extends omni-channel suite with leading North American eCommerce platform serving manufacturers, distributors and retailers.

During this webcast Chuck Lew, Director of Logistics shares how Newegg.com was able to turn the distribution facility with the lowest productivity into one of the highest. He'll discuss how leveraging voice-directed picking with their existing investments in light-directed picking, scanning and RF technology was the key to their success.

Article Topics

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA