RFID tags can boost sales, says new report

The use of radio-frequency identification tags (RFID) to track stock and availability on the shelf can boost sales by as much as 5.5%, according to a new study.

Research supported by supply chain body GS1 UK found 100% of retailers using the technology had seen a positive ROI.

According to the report, produced by researchers at the University of Leicester, retailers such as M&S, which have pioneered the technology, have seen increases in sales of between 1.5%-5.5% through improved stock availability.

It found inventory accuracy improved by over 50%, while the technology also allowed companies to reduce their total stock holding by between 2%-13%.

Richard Jenkins, head of RFID and loss prevention at Marks & Spencer, said: “We were pleased to be asked to participate in such a comprehensive and thorough study into the state of RFID in retail today. This exciting technology innovation for retailers is often misunderstood and shrouded in mystery. Hopefully this new report will dispel some of the myths and provide valuable new insight to assist all of us that are on the RFID journey.”