“RFID Doesn’t Lie” Claims Lululemon

Posted by Advanced Mobile Group on Feb 22, 2017, 2:31:53 PM

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RFID is starting to take over the technological world, and it is easy to understand why. It is accurate, and provides plenty of information for anyone using it. For those who still have their doubts about using RFID systems, you can put your worries aside. RFID is being widely praised by retailers for its accuracy, and ease of use. If you’re still wondering why RFID has not been a favorite for some people, it may be time to see what makes it work. Nearly any business can improve its bottom line by using an RFID system, and here are some things that make RFID running a retailer easier.

The Benefits of RFID Tagging

Some retail stores are going to start using RFID for tagging their products, making them easier to track. These retailers include Macy’s, who is looking to add RFID to their stores by the end of this year. Another retailer, Kohl’s, is going to test the strategy to see if it would be a good fit in their stores. Soft goods have seen the wonders of RFID tagging, and considering the system makes the tracking process easier, it is understandable. Lululemon, a specialty retailer, provided some insight into how RFID has changed their company, for the better. 

Lululemon’s Experience with RFID

The IT Director of Retail, Jonathan Aitken, wrote a story on how well the RFID system works on LinkedIn. He stated that he went to purchase a shirt that he wanted from the company, and went over to the nearest location. While he was there, he could find the shirt, but realized his size wasn’t available on the floor. When he took out his phone, and used the Lululemon app, he was able to find the right size for him. How this system works is by reading the barcode, checking all the nearest locations, and giving him the results. Thanks to Lululemon’s RFID system, he was able to find his well-fitting shirt.

The Accuracy of RFID

One of the biggest reasons why RFID works so well, is because of its accuracy. Aitken proclaims that the RFID system is accurate up to 98 percent, making it one of the best ways to find inventory. Before the RFID system was implemented, Lululemon was unable to fill their test orders, due to inaccurate counts and general errors. Thanks to the implemented system, Lululemon claims they only have inventory problems with one-four percent of online orders, making it an effective and efficient system. They can cut out the errors, and keep track of everything, increasing customer satisfaction, and lowering error percentages.

How Lululemon Uses RFID

Lululemon uses RFID by tagging their goods from their vendors. Everything gets tagged, and once it’s in the system, it can be pulled up by anyone using the app. Lululemon has their associates will count the store, including the front and back of the store for their goods. This process takes only a couple of hours’ maximum, allowing their employees to help customers, and make recommendations. Once this process could take a whole day, and numbers would be off if someone bought something that was accounted for. Using the RFID system, the numbers are correct, and shrink and movement are all accounted for when they’re already put into the system. 

RFID's Impact on Sales

When an item is sold, it will ring up as a point of sale at the register. This means that the whole system is working together to account for everything in the store. You tag something that is on the floor in the morning, and if someone buys it in the afternoon, it will ring up as a sale. This data is then sent to the Cloud, where they can track all the hottest selling items, along with items that don’t sell as well. Even when one item is sold, there will be a notification that alerts associates to pull up something from the back to replace it. The accuracy reporting of their RFID system ensures that everything is available, especially if it is not in one location. 

RFID systems are the perfect way for retailers to make sure they can keep track of everything in their store. It is an easy system to use, and retailers like Lululemon have praised the system to help them become more efficient. While many retailers are just starting to use an RFID system, Lululemon has stated that they are a better company with it. Since they’re keeping track of everything that enters and leaves the stores, inventory is accounted for every time a transaction takes place. Considering they have cut down on errors and costs, improving their bottom line, it’s amazing that more retailers are still using the older systems in place.

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