Working Paper #9


This Working Paper analyzes historical data provided by Macy’s related to its RFID program. RFID technology provides unprecedented visibility into the location of retail merchandise and, therefore, provides benefits that may include reduced inventory requirements, enhanced omni-channel fulfillment, influence sales, improved customer satisfaction, reduced markdowns and labor costs, as well as improved supply chain coordination. Macy’s has been a pioneer in deploying RFID at the item level within retail. The research is focused on four Use Cases:

  • Display Audit.
  • Inventory Accuracy.
  • Single Unit Fulfillment.
  • Back to Front.

This Working Paper has two objectives. The first is to present detailed findings of the benefits associated with RFID technology at a major department store. To our knowledge, this is the most extensive set of data made available on the quantifiable attributes associated with RFID at a retail store. The second objective is to demonstrate how RFID-generated data can be integrated with other information to provide retail business insights.

Table of Contents
    1. Executive Summary of Findings Related to Macy’s RFID Program
    2. Introduction
    3. Macy’s RFID Use Cases
      1. Use Case #1: Display Audit
      2. Use Case #2: Inventory Accuracy
      3. Use Case #3: Single Unit Fulfillment
      4. Use Case #4: Back to Front
    4. Integrated Analytical Applications
      1. Demand Forecasting and Merchandise Trends
      2. Dynamic Pricing
      3. Fitting Room Utilization and Conversion
      4. In-Store Marketing
      5. Merchandise Placement
    5. Conclusion

Diamond: Avery Dennison | RFID, Tyco Retail Solutions
Platinum: Zebra Technologies
Working Paper Supporting Sponsor: RFID Sherpas
Working Paper Supporting Organizations: Council of Supply Chain Management Professionals, RAIN RFID Alliance