American Apparel RFID Case Study: The Benefits

While item-level RFID tagging clearly achieved the two primary objectives, the benefits did not stop there.

• RFID-enabled stores enjoyed a 14.3% sales upsurge versus comparable non-RFID stores
• Labor reductions of 20–30% in RFID-enabled stores
• 99% visibility of store inventory has facilitated inventory reductions of up to 15%
• 99% stock availability has reduced the need for sales staff to spend time searching for misplaced items
• Point of Sale transactions utilizing item level RFID are much faster than traditional barcode scanning
• If sales floor inventory counts are in question, an RFID-enabled store can reset the count in less than three hours
  

It should be noted that the time frame between American Apparel’s decision to test, and having a pilot store converted to 100% item-level RFID tagging was a mere four months (August to November 2007). Couple this with the fact that the payback period on the first year of RFID implementation was approximately four months and it’s clear that an item-level tagging pilot can be implemented quickly and inexpensively. American Apparel is now in the process of implementing RFID across 46 stores in the United States. “I was particularly blown away by the labor time we saved. Our goal is 100% implementation of RFID across our stores,” concluded Livingston.

 

Partnership Delivers Mutual Benefits

As American Apparel pioneers the use of item-level RFID at the retail level, Avery Dennison is uniquely suited to support its initiatives. Avery Dennison is a leading innovator of passive RFID inlay and labeling technology. The company’s capability begins with designing antennas that meet the requirements of the products on which they will be used. Depending on customer-specific needs, Avery Dennison can select from its wide range of inlay designs and create products that overcome the varied real-world challenges experienced in the retail supply chain.

Item Level RFID Tagging Identifies "Missing Inventroy"

Summary: American Apparel - An RFID Success Story

The Challenge: Reclaim the "Lost 10%" of Inventory

The Results: 99% Inventory Accuracy

Additional Benefits: Sales Up 14%. Inventory Down 15%

Want to Know More About What RFID Can Do For You?

Contact your local Avery Dennison RFID sales representitive to find out more about developing a customized RFID program for your brand.