Decathlon uses RFID tags to make products smarter

Decathlon is a French sporting goods retailer with 1,500 Stores and omnichannel evolution. It has a good story in the field of operations and logistics, where RFID tags are applied.

The retailer has been expanding its established RFID program for nearly three years to use tags on all of its products in order to manage inventory and keep goods secure.

This is part of a supply program that has been available in partnership with SML Group for over five years. It aims to ensure that Decathlon's network of suppliers all use RFID stickers and tags sewn into clothes during the manufacturing process.

Each RFID item is assigned an individual Electronic Product Code (EPC) number to match a unique product SKU. The resulting item-level tracking improves inventory management and ensures better goods availability, while also reducing stock-outs and improving customer service.

Embisphere manages Decathlon's RFID program. In addition to inventory management, RFID tags are also associated with electronic article surveillance security tags on high-value items.

This year, Decathlon announced plans to offer a "scan and forward" service in its Dutch stores in response to changing customer behavior. The service will allow customers to scan and pay for items on their smartphones, disabling RFID tags so they can exit without queuing or waiting to check out.

  Decathlon has partnered with MishiPay to launch the product, starting with stores in Rotterdam and Eindhoven. The idea is to take advantage of the fact that almost all shoppers use mobile phones in stores, which means the technology is already available.

Sybe De Graaf, Decathlon’s chief technology officer, noted: “We are always looking for new ways to improve our customers’ experience and remove friction from their in-store journey. MishiPay’s mobile self-checkout works very quickly and can be easily scaled.”

Retailers that use RFID tags - radio frequency identification - can expect to see an increase in their sales, according to a recent study that analyzed the use of tags by 10 retailers and found the highest increases were as high as 5.5%. The research, led by Adrian Beck of the University of Leicester, involved leading retailers and brands including Adidas, C&A, Decathlon and Tesco.

Professor Baker combines face-to-face interviews with quantitative data on business performance. The report found that all companies studied experienced positive returns on their investments in the use of RFID, with all companies in particular experiencing sales increases due to increased inventory generated by the use of RFID.