Retailers all over the world are now turning to RFID technology to boost item-level tracking in their retail stores as well as the retail supply chain. As a wireless, fast, and efficient technology, RFID leverages RFID labels, readers, and a dedicated RFID-based inventory management software system to unify physical and digital retail inventory. It replaces manual stock management and disconnected data systems with a robust solution, enabling automatic item-level tracking, data synchronization, and real-time analytics across the retail value chain.
Omnichannel retail is the new retail model where brands like Zara, Walmart, Decathlon, Reliance Retail, etc. are not only transforming their retail stores to attract more customers but also offering a seamless online shopping experience through their websites.
The retail industry is undergoing a paradigm shift from traditional in-store experiences to omnichannel retail, where customers expect seamless interaction across online and offline platforms. A McKinsey report indicates that the majority of customers use at least three channels for each purchase journey.
Omnichannel retail also brings a new set of challenges in terms of unifying physical and digital retail, having a clear view of inventory, returns, refunds, customer satisfaction, etc. A technology like RFID has proven to be a great success in this regard.
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RFID Tools for Unified Retail: Physical and Digital
RFID technology has proven to be a great tool when it comes to unifying physical and digital retail, integrating inventory management with online and offline orders, returns and return-to-shelf.
Tagging is the foundation of RFID-based retail transformation. Retailers attach UHF RFID labels to products, each encoded with a unique identifier. These labels can be printed and encoded using printers such as Zebra ZT411 or TSC TH and DH series desktop printers. RFID readers, mobile computers and a customized back-end software solution take care of the rest.
a.RFID Labels: Tagging Apparel with RFID
Tagging apparel with RFID labels in retail enables item-level visibility from the factory to the fitting room. An Avery Dennison survey (2024) of 300 retail leaders in the UK and the USA, representing brands with over 200+ stores, revealed that 76% are using RFID or plan to begin doing so within the next 24 months. 93% of apparel retailers using RFID reported improved stock accuracy (up to 98.5%) and reduced out-of-stocks by 30%. Brands like Zara and Decathlon have implemented full RFID tagging, achieving near-perfect real-time inventory accuracy and enabling “click-and-collect” services.
b.Tagging Fresh Items with RFID
In grocery and fresh produce, RFID-enabled temperature sensors (RFID + IoT hybrid tags) help track perishability and ensure food safety. Solutions such as Impinj M700 series chips are increasingly used for cold chain monitoring, helping retailers like Walmart and Tesco manage freshness and compliance efficiently. Recently, Walmart teamed up with Avery Dennison to boost item-level visibility in fresh items, improving customer satisfaction and reducing wastage.
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c. Transforming Retail Inventory with RFID Readers
Another RFID tool is an RFID reader, which plays a central role in the digitization of inventory by providing instant item counts, movement history, and location-based data.
1.Zebra FX9600: Ideal for backroom inventory scanning, supporting over 1,200 tag reads per second.
2. ATR7000 Overhead Reader: Creates a “smart ceiling” for retail floors, offering real-time location tracking of items and shopping carts.
3. RFD40 Handheld Readers: Empower store associates to perform rapid cycle counts, scanning over 1,300 items per second, reducing manual counting errors drastically.
4. Impinj R700: Integrates with cloud platforms for analytics and API-based data sharing, crucial for unified digital dashboards.
Retailers using RFID readers can reduce inventory audit time by 85% and improve stock visibility from 65% to 98% as per several estimates.
d. Retail Store Management with RFID Solutions
RFID transforms retail store operations through:
1.Automated Replenishment: Smart shelves alert staff when stock is low.
2. Loss Prevention: RFID-based EAS (Electronic Article Surveillance) reduces theft.
3. Fitting Room Analytics: Readers track try-ons vs. purchases for demand insights in smart fitting rooms.
4. Customer Experience: Associates can instantly locate any item in-store using mobile RFID systems.
RFID enables end-to-end traceability, from manufacturing to distribution centers to stores. By replacing manual scanning with automated RFID gates, supply chain speed increases significantly:
1. Inbound/outbound tracking accuracy up to 99.9%.
2. Reduction in shrinkage by up to 60%.
3. Optimized logistics with real-time data integration to WMS (Warehouse Management System) and ERP platforms.
f. Managing Online and Physical Returns in Omnichannel Retail
In omnichannel models, returns management is a major challenge. RFID tags allow instant identification of return items, verifying authenticity and condition. Retailers can immediately restock returned items- a process known as “Return-to-Shelf” automation; thus reducing dead inventory.
EnCstore and Ruddersoft- RFID Solution Providers in India, Spearheading RFID Retail Solutions
Which firm can seamlessly solve the retail supply chain and unify physical and digital inventory for omnichannel retail in India is a common question many retailers are asking. RFID solution providers like EnCstore and Ruddersoft are leading RFID solution providers that are spearheading retail RFID solutions, offering end-to-end RFID deployment at various retail outlets such as Zudio, Decathlon, etc.
While EnCstore.com offers all kinds of RFID tags, readers, mobile computers, and label printing solutions from popular brands such as Zebra, Impinj, Chainway, and TSC/Printronix Auto ID, Ruddersoft is an authorized Zebra Partner in India, offering premium Zebra RFID Readers, Mobile Computers, and Printers in India. They also offer customized RFID Retail Solutions, from need assessment to solution design and deployment, crucial in unifying physical and digital retail inventory for many of their retail clients that offer omnichannel retail experience to customers in India.
To summarize, RFID is not only seen as a tracking tool but also as a strategic enabler of digital transformation in retail. RFID bridges the physical and digital worlds of omnichannel commerce by providing real-time visibility, automation, and data-driven intelligence.
For retailers in India that wish to unlock unified inventory management and integrate physical and digital inventory, RFID solution providers like Ruddersoft and EnCstore offer a comprehensive RFID solution development and deployment in the retail sector.
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