RFID in the Apparel Retail Industry: A Case Study from Galeria Kaufhof

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Abstract

This contribution deals with the business value of radio frequency identification (RFID) technology in the apparel retail industry. We present a case study of an RFID project at Galeria Kaufhof, a subsidiary of Metro Group and one of the largest department store chains in Europe. The trial shows that operational efficiency gains through the automation of logistical in-store processes, such as inventory counting or goods receipt, are possible. Moreover, RFID enables new customer applications on the sales floor, which allow for a redesign of the customer interface, and thus an improvement of the service processes and the service quality. In addition, the analyses of the gathered data on the sales floor help to close the “data void” between the goods receipt and the point of sales of the department store, thus offering the opportunity to directly observe and analyze physical in-store processes. The RFID data analyses allow for deriving valuable information for the department store management in the areas of inventory management, category management, store layout management , and department store processes .