General merchandise is rising as a commonly tagged category in stores. Previously, this area of retail has been limitedly tagged due to the variety of products and packaging types as well as technical challenges, including metal packages or liquid products. Retailers like Walmart, Macy’s, Dick’s Sporting Goods, Nordstroms, Dillards, and many others have successfully implemented RFID in their stores, at least on a portion of their products. However, tagging is key to getting the most out of your RFID solutions.

 In this post, we will explore how RFID implementation is overcoming historical challenges in managing general merchandise inventory. We will examine the benefits of best practices and strategies to maximize RFID technology, providing a practical guide for other retailers looking to optimize their operations and improve customer satisfaction through this innovative technology.

General Merchandise inventory management challenges

Inventory management in the retail sector is a complex task, and when it comes to general merchandise, the challenges are amplified. Unlike clothing and other soft goods that are already well-established in the use of RFID, general merchandise presents a series of unique requirements.

Firstly, these products often come with a variety of packaging and materials that challenge tagging and tracking. Therefore, it is important to adopt solutions that can be implemented in different formats and materials.

Currently, there are solutions specially designed for such environments to bring the benefits of RFID to several types of products and businesses.

Benefits of implementing RFID technology in General Merchandise

The adoption of RFID technology in the general merchandise sector offers significant benefits that can transform inventory management and improve operational efficiency. Many general merchandise retailers, such as Walmart, Dick's Sporting Goods, that have implemented RFID are seeing how this technology is making a noticeable difference in various aspects:

  1. Greater Inventory Accuracy: RFID provides near-real-time visibility of inventory, allowing retailers to accurately track stock levels. This accuracy helps minimize errors and ensures products are available when customers demand them.
  2. Improved Online Order Validation: With RFID, retailers can manage online orders more efficiently. The technology allows for faster and more accurate verification of items in orders, reducing shipping errors and improving customer satisfaction. This translates to a faster and more reliable service for consumers, who can trust they will receive exactly what they ordered.
  3. Increased Sales: The ability to manage inventory more efficiently through RFID ensures that high-demand products are always available on shelves. This not only enhances the customer experience but can also lead to increased sales, as consumers are more likely to make purchases when products are available and well managed.
  4. Greater Customer Satisfaction: Accuracy in inventory management and quick product replenishment have a direct impact on the customer experience. The ability to offer fast and reliable service, along with consistent product availability, results in higher customer satisfaction. Customers who find what they are looking for and receive efficient service are more likely to return and recommend the retailer to others.

Best practices and strategies to maximize the benefits of RFID

As stated before, one of the retailers that is betting on RFID as part of its plan to adopt and expand its business is Walmart, the global retail giant. Since its initial implementation in 2020, the company has extended the use of RFID across various product categories, including electronics, toys, home, sporting goods, apparel, demonstrating the transformative potential of this technology. The objective of the integration of RFID will be to improve inventory accuracy but also to enhance the customer experience and increase operational efficiency in its stores. 

Checkpoint Systems has launched a new General Merchandise portal that will lead inventory management through the implementation of RFID technology. This portal will guide users step-by-step through the process, leveraging the company's RFID expertise to help retailers reduce out-of-stock incidents and increase sales. With its data-driven approach and adaptability, RFID improves decision-making, optimizes inventory levels and facilitates real-time collaboration with suppliers and logistics partners.

RFID technology is proving to be a silent hero in optimizing general merchandise management in retail. Walmart in general merchandise is demonstrating the tangible benefits of this technology, by expanding its RFID implementation to a broader range of product categories. With greater inventory accuracy, improvements in online order management, increased sales, and higher customer satisfaction, RFID is transforming the retail landscape.