Aberdeen: Item-Level RFID Tagging Brings Benefits to Retailers
May 21, 2008 // Published as a news service by IHS
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According to a study from Aberdeen Group, item-level radio frequency identification (RFID) tagging is translating into measurable business benefits that may compel many retailers to invest in RFID in 2008 and beyond.
"Retailers are achieving real business benefits directly attributable to item-level RFID deployments," said Michael Dortch, Aberdeen senior analyst.
According to Dortch, among the top retailers identified by Aberdeen Group research:
- Customer satisfaction has improved by an average of 12% during the past two years.
- 78% have increased inventory turns by an average of 5.4%.
- 76% have increased same-store year-over-year sales.
"These benefits have driven 44% of retailers surveyed by Aberdeen to adopt RFID, while an additional 40% are planning to deploy," he said.
However, Aberdeen also found that despite RFID business benefits, 53% of the nonadopters still believe that RFID has not matured sufficiently to prove its return on investment (ROI).
These and other findings indicate that inaccurate perceptions of the realities of RFID in retail may be the biggest impediments to broader adoption, Aberdeen said.
For a complimentary copy of the report, visit http://www.aberdeen.com/link/sponsor.asp?cid=4650.
Source: Aberdeen Group.