RFID Applications in Retail

Radio Frequency Identification (RFID) technology is one of the latest product tracking technologies being utilized by retailers. Operations management improvements were among the first recognized applications of this technology earlier in the century. RFID applications in managing retail operations, such as inventory management and control, lead to significant benefits. However, RFID applications are not limited to operations management and go beyond the operations side to offer improvements in other areas in retail such as marketing and managing customers’ shopping experiences. In this research, we review the applications of RFID technology in retail since its introduction and how those applications have evolved over the last two decades to help retailers provide omnichannel services to their customers in the current market. We will demonstrate what strategic and tactical factors have helped retailers implement this technology and what factors have slowed down the process of adoption. We will also report on the latest status of the utilization of RFID in the retail sector.