Apparel and Retail
RFID Theft Prevention in Apparel and Retail
Item-level RFID tagging makes daily inventory counts a realistic task, and companies like American Apparel have readily embraced RFID throughout their supply chain all the way to the retail store. The real-time and accurate data has improved their logistics strategies, but American Apparel noticed another added benefit. Shrinkage in their stores dropped by an average of 55%, and some stores saw shrinkage drop by 75%. It turns out that employees were largely responsible for a significant portion of shrinkage.
Employee theft accounts for 43% of all retail shrinkage. When inventory is tracked in real-time, employees are no longer able to easily steal products as the source of the theft would be quickly linked to the employees working during that shift. From there, it would be a quick process of elimination to identify the culprit.
When RFID, point-of-sale, and electronic article surveillance (EAS) technologies are all incorporated, loss intelligence greatly improves due to the availability of shared data throughout the integrated system. RFID provides inventory visibility and keeps stock levels accurate, but when integrated with the POS and EAS system, companies can identify which items exited the store without being purchased. Besides providing valuable data to loss prevention teams, the store can adjust their inventory accordingly. Also, if someone attempts to return the stolen item, the POS and RFID system will be able to identify that item as being stolen.