On the vast stage of retail, the continuous growth of SKUs has made store management increasingly challenging. With each additional SKU, inventory accuracy and operational efficiency face new pressures. From small community shops to large hypermarkets, managers are constantly seeking solutions to streamline processes and boost efficiency. Retail is now at the forefront of an intelligent transformation, and RFID technology, as a pioneer of this change, is gradually transforming inventory management, supply chain operations, and the customer shopping experience.
Market Trends
As consumer demands become increasingly diverse, the surge in SKUs has become the norm. While this trend provides customers with a rich variety of products, it presents significant inventory management challenges for retailers. According to a VDC report, by 2028, global RFID tag usage in apparel retail is expected to grow from 25 billion units in 2023 to over 60 billion units, representing a compound annual growth rate (CAGR) of 19.2%. This demonstrates that RFID technology, through automated inventory and real-time stock monitoring, enables retailers to accurately manage large, complex SKU assortments, thereby improving inventory turnover and operational efficiency.
The Choice of Industry Leaders
The decisions of global retail giants have already set the industry direction. Walmart, Macy’s, and Metro have taken the lead in mandating RFID-based supply chain management, while brands like ZARA, Uniqlo, and China’s Hailan Home have fully implemented RFID solutions. This move not only significantly enhances supply chain efficiency but also establishes a core competitive advantage for the future of retail.
Cross-Industry Technological Transformation
RFID is no longer exclusive to the apparel industry—it is driving technological transformation across multiple sectors worldwide. From fashion to food, fast food to electronics, RFID enables complex supermarkets and department stores to achieve more efficient and intelligent inventory management and supply chain optimization. Driven by regulations like the U.S. Food Safety Modernization Act, RFID adoption in the food and fast-food sectors is accelerating. VDC Research predicts that by 2028, RFID tag usage in these sectors will rise from 2.7 billion units in 2023 to 8.8 billion units, with a CAGR of 27%.
The Complexity of Retail Tags
The proliferation of SKUs has increased the complexity of retail tagging. Different stores carry anywhere from hundreds to tens of thousands of SKUs, and labels must adapt to various materials including cardboard, plastic, metal, and liquids.
Community Discount Stores: Biedermann stores ~600 SKUs, TarMa ~800 SKUs, small discount snack shops ~1,100 SKUs, Aldi ~1,800 SKUs.
Warehouse Membership Stores: Jiayue Warehouse ~3,000 SKUs, Costco ~4,000 SKUs per store on average.
Hypermarkets: Walmart hypermarkets can carry up to 20,000 SKUs or more per store.
Discount Grocery Stores: Grocery Outlet stores average ~1,300 sqm of sales space with over 10,000 SKUs.
Imagine a retail store needing to tag thousands of products, with each label capable of performing reliably across multiple materials and environments. This places high demands on RFID tags and highlights their critical value in retail digitalization.
Xindeco IoT’s Retail Tag Product Portfolio
To address the challenges of high SKU counts and complex usage scenarios, Xindeco IoT has developed a comprehensive RFID product portfolio tailored for the retail sector. With diversified antenna designs, these RFID tags deliver stable, high-performance operation across cardboard, plastic, metal, and liquid surfaces. They provide retailers with practical solutions to optimize store operations and management, helping achieve higher efficiency and operational precision.
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