A new era for RFID in retail

RFID resonates among retailers

Radio-frequency identification (RFID) has fast-evolved from a technology used at the fringes of retail, to a global technology that is delivering business results to retailers everywhere. In the eight years that Accenture has studied RFID in retail, we have learned that not only is RFID here to stay—it’s growing.

After a year like no other, retailers are using technology to adapt to disruption. RFID is high on the list with just 5% of retailers we surveyed not considering RFID. In fact, the majority of retailers (80%) said the benefits of RFID cannot be replicated by another technology. RFID is clearly here to stay, and it’s exciting to imagine how retailers will use it next.

RFID in retail is booming

In overall adoption, North America continues to be the frontrunner with 93% of retailers surveyed using RFID. And when we look at full adoption (compared to just piloting or implementing), all three regions of North America, Europe and Asia-Pacific have seen huge increases since our previous RFID study two years ago.

Retailers are seeing the benefits. RFID facilitates greater accuracy of inventory and it is a key enabler of omnichannel capabilities. The increase in RFID adoption over the past two years has also overlapped with an increase in return on investment and expanded use cases for the technology.

As retail use cases increase, so does RFID value

Due to higher adoption, expanded use cases and increased omnichannel enablement, the return on investment for the technology continues to rise. And when retailers enable five or more omnichannel shopping experiences, they are seeing a 20% higher ROI compared to retailers that have only paired the technology with four or fewer omnichannel shopping experiences.

The pandemic has had a direct impact on RFID adoption as well as other technologies. And the good news for RFID is that a majority of respondents (82%) agree that RFID is essential for implementing emerging technologies. They also feel it works as a companion—with 83% of respondents agreeing.

Retailers unlock the potential of RFID

As with most new technologies, adoption requires significant changes and there is much for associates to learn—but most retailers believe the benefits far outweigh the challenges.

Retailers can successfully implement RFID by:

For RFID to be effective, it must be supported throughout a retailer’s organization—from sourcing to stores and all team members. Leadership can set the stage for adoption by sharing success stories with their people and explaining the path to value through RFID. Read our research report to learn more.