The benefits, challenges and impacts of radio frequency identification technology (RFID) for retailers in the UK

Abstract

PurposeTo offer an outline of the characteristics of radio frequency identification technology (RFID) and discuss its perceived benefits, impacts and challenges, as they apply to retailers in the UK. The paper draws together a range of information and intelligence about the application of RFID and reflects on the strategic planning challenges it poses to retailers.Design/methodology/approachThe paper draws its material largely from trade and practitioner sources and illustrates general themes with specific retail examples.FindingsThe paper suggests that RFID has the potential to deliver a wide range of benefits throughout the supply chain, including tighter management and control, reduction in shrinkage, reduced labour costs and improved customer service. However, retail users will have to address a number of operational and strategic challenges and consumer privacy concerns before these benefits can be fully realised. The adoption of RFID may further increase structural concentration within the retail sector of the economy, and have a major impact on retail operations at shop floor level and on the customers' shopping experience.Originality/valueAn accessible outline of RFID developments within UK retailing, of interest to marketing professionals and academics concerned with marketing practice. A companion piece to the paper by Wyld et al. in this issue.