Walmart used RFID tags to improve store inventory accuracy

As RFID Journal recently reported, Walmart US has notified its suppliers that it is expanding the labeling requirements with RFID to products in many new merchandise categories. By September, these items will need to enter Walmart stores with RFID smart tags. For Walmart's sheer size, expanding the use of RFID technology to improve the capacity of its stores anytime is a big deal. This is a very smart move.

Expand beyond the apparel and footwear industry

As early as 2019, Walmart in the United States instructed all suppliers of clothing, footwear, sunglasses and watches to start applying RFID tags on goods. Most jewelry categories are also included. Walmart also now uses RFID to manage its tire inventory.

According to Advertising Age, Walmart's memo to suppliers included the following statement:

1. "Over the past year, we have successfully implemented RFID technology in our apparel division with remarkable results."

2. "We have improved On Hand's accuracy to expand online order fulfillment. These significant improvements have had a significant impact on the sales pipeline and customer satisfaction."

3. "With the success of this initiative, Walmart plans to continue to expand the program to other departments and categories. RFID will help improve inventory accuracy, bring customers a better in-store shopping experience, more online and In-store pickup capabilities, and greater sales opportunities.”

But around 2011, Walmart in the US required all clothing and footwear to be labelled. Unfortunately, some patent litigation caused delays. It's unclear when Walmart outside the US will also start using RFID technology. Apparel and footwear are the first categories in which RFID has proliferated in retail. But other major consumer goods categories have also grown steadily in recent years. Walmart's wise decision to improve its store-level inventory accuracy in household goods, wireless and consumer electronics is now focusing the spotlight on the value RFID is already delivering in these other market segments.