I recently posted this comment on RetailWire in a discussion about RFID tags and their use in retailers like American Apparel:
American Apparel’s experience is a case study in the power of greater visibility inside the store and the benefits retailers can get out of it. Now only can visibility on what’s happening inside stores reduce shrinkage, but it also becomes a powerful tool in understanding how to optimize the in-store shopping experience to generate more sales at the register.
RFID can deepen that information. Imagine what you could do with a detailed view on how your products move around the store. Which items travel to the register or to the dressing room. Which items leave their hangers and then return later. This information, correlated with sales data, becomes a deeper insight into the sales drivers inside the store. And that is how retailers learn the lessons they need to improve the bottom line.