Case study: Decathlon: getting smart with RFID tags – Magazine Articles
Decathlon is a French sporting goods retailer with 1,500 stores and an omnichannel development in sight. It has a strong story to tell in operations and logistics, and RFID tagging features high on its agenda.
It has been nearly three years since the retailer expanded its already established RFID program, incorporating tags into all of its products to manage inventory and secure merchandise.
This is part of a procurement program that he has been implementing for more than five years now, in partnership with SML Group. It aims to ensure that Decathlon’s supplier network adopts all RFID stickers and tags, which are sewn into garments during manufacture.
Each RFID item is assigned an individual Electronic Product Code (EPC) number to match the unique part number of the product. The resulting item-level tracking improved inventory management and ensured better merchandise availability, while reducing stockouts and improving customer service.
Embisphere manages Decathlon’s RFID program. In addition to inventory management, RFID tags are linked to electronic item surveillance security tags on high value items.
This year, Decathlon announced plans for a âscan and goâ service in its stores in the Netherlands, in response to changing customer behavior. The service will allow customers to scan and pay for items on their smartphones, disabling the RFID tag so they can go out without queuing or waiting at the checkout.
Decathlon collaborated with MishiPay on the rollout, which started in its stores in Rotterdam and Eindhoven. The idea is to take advantage of the fact that almost all shoppers use their phones in stores, which means the technology is already available.
Decathlon CTO Sybe De Graaf said: âWe are always looking for new ways to improve our customers’ experience and remove friction from their in-store journey. MishiPay’s mobile self-checkout was implemented very quickly and is easily scalable.
Retailers who use RFID tags – radio frequency identification – can expect their sales to increase, suggests a recent study, which analyzed tag usage by 10 retailers and found sales increases of up to ‘to 5.5%. The study was led by Adrian Beck at the University of Leicester and involved leading retailers and brands including Adidas, C&A, Decathlon and Tesco.
Professor Beck combined face-to-face interviews with quantitative data on the company’s performance. The report found that all of the companies surveyed saw a positive ROI on the use of RFID, and in particular that all benefited from increased sales due to the increased availability of inventory resulting from the use of RFID. RFID.