In light of the recent report and discussion here on Procter & Gamble's decision to pull out of a radio frequency identification (RFID) program that placed tags on displays at Walmart locations because of a lack of execution at store-level, it seemed fair that attention be brought to a tagged display program at Walgreens that the chain has publicly credited with helping it to become a more effective merchant.
Walgreens has used an RFID-based system to enable it to determine the location of displays and the level of execution in stores. An upgrade to the current system created by GOLIATH Solutions and used at the drugstore chain's stores nationally will include EPC tags placed on displays.
David Van Howe, vice president of purchasing for Walgreens, called the information captured from the displays a "game changer" for the chain.
"Not only does it help us identify and purchase more effective programs, our store operations teams are embracing the GOLIATH data to improve execution throughout our chain," he said in press release. "Store level information about what is up and where it is in the store allows unprecedented accountability for achieving program potential. The results have been impressive: Over the past year, our in‐store execution has grown to nearly double the industry average."
Revlon is one of the vendors that has worked with Walgreens on the RFID display program. The company's sales director, Bill Ferry, said, it had gained "unprecedented insight into what works and what doesn't with consumers."
"This has helped us maximize our return from our displays and refine our programs to eliminate displays that aren't producing as effectively as we would like," Mr. Ferry added. "For the first time, we now have an independent measure of store compliance, and additional insight into optimal location for our programs."
Discussion Questions: What is your takeaway from the experience of Walgreens and Revlon using RFID-tagged displays? Do you think this is the best approach to improving compliance at store-level and gaining insights into what displays work and why? What are your thoughts on the next generation of EPC-compliant system?