©2009 Avery Dennison Corporation, All Rights Reserved.
American Apparel® is a registered trademark of American Apparel LLC and other fixtures and in store images are the property of American Apparel LLC and used with permission. Components provided by Motorola and Xterprise are their respective property and are used with permission. Other third party trademarks, trade names, images and the like may appear in this material and is the property of their respective owners.
American Apparel® RFID Case Study
Summary
The need to replenish items on the sales floor the instant they are sold required American Apparel, the Los Angeles-based apparel manufacturer and cult status retailer, to reinvent its inventory management process. In 2007, the company embarked on RFID pilots at a number of its New York City retail locations.
The result: American Apparel RFID inventory management pilot stores have achieved the Holy Grail of retail—99+% on-floor availability of all the items stocked. In addition, work-hours required for restocking have been reduced, efficiencies in back room stock replenishment have increased and customer service has improved.
The Client’s Business
American Apparel is the largest clothing manufacturer in the United States. It is best-known for making basic cotton knitwear, such as t-shirts and underwear, but in recent years has expanded its product line to include tank tops, vintage clothing, dresses, pants, denim and accessories for men, women, children and babies.
The company is known for cutting-edge advertising and product branding. Its “Made in Downtown LA” business model has contributed to significant brand awareness and achieved a cult status worldwide. It operates over 300 retail locations in 18 countries.
An average American Apparel retail store carries 30–40,000 individual SKUs. The company has a unique approach to store-level operations, displaying only one of each SKU rather than the traditional retail approach of displaying multiple pieces of each SKU. “We tightly pack our racks,” says Zander Livingston, RFID technology director for American Apparel. “One of every flavor. Variety creates a more rewarding customer experience and better utilizes retail floor space.”
American Apparel uses a vertically integrated business model that minimizes the use of sub contractors and offshore labor. Knitting, dyeing, sewing, photography, marketing, distribution and design all happen in its Los Angeles facilities.
American Apparel Case Study
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 a Avery Dennison RFID specialist today.
