RFID technology is enabling Macy’s to better compete with online retailers like Amazon. Last week Macy’s announced that it is expanding its same-day delivery service to nine more cities this month, making the service available in 17 regions in the U.S.
Macy’s has long been an aggressive leader in the adoption of RFID technology, which gives retailers a more accurate view of their inventory. Quite simply, it would be impossible to fulfill online orders through its stores and deliver them the same day without the high confidence in inventory accuracy that RFID provides.
“Our ability to expand same-day delivery is rooted in local merchandise inventories at Macy’s stores, as well as a newly expanded delivery footprint of our partners at Deliv,” said R. B. Harrison, the chief omni-channel officer at Macy’s, in a statement.
“When we piloted same-day delivery in eight markets initially last fall, we learned that our customers appreciate the additional option of having their purchase brought to their home or office in a matter of hours. It is an important part of our value proposition as an omni-channel retailer serving customers who shop our stores and websites whenever, wherever and however they prefer.”
All Macy’s stores are now enabled to handle EPC-tagged RFID, and the retailer anticipates all categories and products will carry RFID tags by 2018. Earlier this year Macy’s received funding from its board for three more years of RFID deployment, which will support the next level of its RFID journey through 2017.
Macy’s has seen sales gains ranging from the high single digits to double-digit growth, depending on the category.
“RFID has been so successful that we just received our next round of capital,” Pam Sweeney, senior vice president of logistics systems at Macy’s, told RFID 24-7 in April. “For those vendors selling to Macy’s who are not on source tagging yet, we are anxiously awaiting your commitments.”
Boston, Atlanta, Dallas, Honolulu, Miami, New York City, Orange County, Calif, Philadelphia and Las Vegas are among the new same-day delivery markets that will open this month. Chicago, Los Angeles and San Francisco were among the initial markets that piloted the new service.
The charge for same day delivery from Macy’s or Bloomingdales.com is a flat $5 above standard ground shipping fees.