RFID Store Helps Retailers and Manufacturers See Technology in Action
Point-of-sale systems provider Wincor Nixdorf Inc. has opened an RFID (radio frequency identification) future store and lab at its Austin, Texas–based headquarters to showcase how the technology can work at the retail level.
The company—which provides POS terminals, interactive kiosks and wireless networks— designed the lab to show prospective clients how RFID can create efficiencies, from shipping and receiving to checkout, in a retail environment. The lab is designed as an apparel retail store.
RFID has gained attention in the logistics arena; Wal-Mart Stores Inc. and the Target Corp. announced plans to use the technology for warehouse management. Wincor and German retailer Metro AG have been promoting RFID’s retail value.
In the future store in Texas, incoming inventory is tagged with Texas Instrument’s smart RFID labels and recorded through a stationary RFID reader. The information is compared with the data maintained in the store’s inventory management system to track discrepancies. The data include information on size, color and style number. Multiple tags can be read simultaneously.
RFID-enabled smart shelves on the sales floor track inventory and styles so that store personnel can manage overall inventory efficiently.
Wincor has also placed readers in the dressing rooms to identify the types of products customers bring inside for marketing purposes. A display in the dressing room suggests alternative or complementary combinations of clothing and accessories.
And when it comes time to checkout, cashiers do not have to scan items manually because the tags are read through radio waves transmitted to a stationary reader. There is also no need to remove EAS (electronic article surveillance) tags because security functions are built into the RFID tags. Customers can also pay using an RFID-enabled payment token to communicate credit information to the point-of-sale system, completing the transaction wirelessly and securely.
Though stores in the United States are probably several years away from implementing RFID on this scale, companies such as Wincor are preparing for the future. The company is the world’s third-largest supplier of POS systems and ATM machines.
Axel Bretthauer, RFID project manager for Wincor, said one of the keys to implementing RFID at retail will be working with hardware that features international standards. Several public and private organizations are working to establish such standards. In addition, legislators are looking to establish privacy standards for RFID so retailers cannot obtain too much private information from consumers.
