RFID in Retail

Radio frequency identification has been widely used in industry for many years; it has improved automation at different stages of manufacture but is it suitable to introduce this technology into the retail environment?

IT reseller (2006) explains “RFID — radio frequency identification — already is demonstrating measurable results that have the potential to transform how business is conducted for both retailers and their suppliers. Benefits include reduced labour costs, simplified business processes, improved inventory control, increased sales and reduced shrinkage.”

This technology has many benefits in business but the introduction of this has been hit with resistance. Many believe this system of identification can be too intrusive and restrict privacy. Introduction of RFID tags on individual products allow companies to monitor product trends and consumer habits, which may be information the customer my wish to keep private.

Brian (2007) states “companies like Wal-Mart and Target plan on using RFID tags on individual products which they can trace consumer's buying habits and other information consumer's wish to keep private. It was privacy issues that force Benetton to cease their pilot RFID system. They wanted to embed a tag in articles of clothing to stop theft, determine consumer buying habits and keep their inventory at an acceptable level. Privacy advocate groups such as the Consumers against Supermarket Privacy Invasion (CASPIAN) fight companies using RFID to track consumer behaviour. A study showed that up to 78% of America was against RFID based solely on privacy issues. It will be difficult for companies in the future to tag individual items without a public outcry without some form of protection for the public's privacy rights.”

Brian, F., 2007, Pros and Cons of RFID Technology [Online] Available at: <http://ezinearticles.com/?Pros-and-Cons-of-RFID-Technology&id=522015> [accessed 18/10/2010]

IT Reseller, 2006, RFID Technology In Retail [online] Available at: <http://www.itrportal.com/absolutenm/templates/article-barcode.aspx?articleid=35&zoneid=11> [accessed 18/10/2010]