The year 2008 will go down in history as the year that radio frequency identification (RFID) technology got a foothold and began its climb toward widespread use in retailing. That is the conclusion of an editorial by John Johnson on the RFID 24-7 blog.
RFID industry professionals and analysts have been heartened by the continued forward push of the technology during a time of economic weakness. Some believe that the technology's ability to help reduce costs and improve profitability is key to its success in a period where continued growth cannot be assumed.
"The fight for the consumer dollar is more relevant than ever given the economic times," said Mike Liard, research director for RFID & contactless at ABI Research. "RFID can help reduce that out-of-stock challenge. The technology can make sense in a tough economy from a technology and business benefit and operational efficiency point of view."
American Apparel is one of the most visible supporters of RFID with plans to introduce item-level tagging at its more than 200 stores in the U.S. The company claimed to achieve a 15 percent lift in sales after deploying item-level tags at a store in New York.
Discussion Question: Is 2008 the year that RFID turned the corner to widespread adoption in the retailing business?