By the end of this year, more than 1,000 Zara stores will have deployed RFID technology, with a full rollout anticipated by 2016.
According to a recent report in the Wall Street Journal, the Spanish retailer’s parent, Inditex, bought 500 million RFID chips ahead of the rollout, or about 16 percent of the tags that apparel makers are expected to use globally this year, according to U.K.-based research firm IDtechEx. This video provides a detailed look into how Inditex is using RFID at its Zara stores and provides an excellent understanding of daily replenishment from back room to the store.
Zara generates two-thirds of Inditex’s $21.6 billion in annual sales. Retailers generally see at least a 2 percent uptick in sales by deploying RFID, meaning that Inditex could see at least an additional quarter-billion in additional sales at full deployment.