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American Apparel Adds RFID to Two More Stores, Switches RFID Software
According to Livingston, the Xterprise software allows American Apparel to offer a user interface that makes it easier to add new stores to the system, as well as make changes on reporting within a particular shop. "We are at a point now where we have a stable, scalable solution performing up to our requirements," he says, and the retailer is now better prepared to begin expanding its use of the technology.
The next step for American Apparel is to deploy RFID gates at the doorways of six Florida stores, in order to read EPC Gen 2 RFID tags inserted in security tags on any items removed from one of those shops. The staff will attach an RFID-based EAS hard tag that locks onto an item just as a non-RFID hard tag does. When the tag passes through a gate's RFID reader, its ID number will be captured and the gates will sound an alarm, indicating an item is being stolen. If an item goes through the point of sale, however, its hard tag will be removed. Hardware vendors for the RFID interrogators and tags have not yet been identified.
American Apparel operates 250 retail stores in the United States, Europe and Asia, Livingston says, and eventually intends to install an RFID system in all of them. In the meantime, he adds, the company's focus is on improving the software to integrate more closely with the store's inventory-management system, thereby reducing the amount of tasks workers need to accomplish during such processes as receiving items, transferring goods and accepting returns.
Once RFID is deployed in a store, Livingston says, the increase in that location's sales ranges anywhere from 2 to 8 percent, though he calls that a conservative figure. Inventory accuracy is at 99 percent, Livingston says.
The next step for American Apparel is to deploy RFID gates at the doorways of six Florida stores, in order to read EPC Gen 2 RFID tags inserted in security tags on any items removed from one of those shops. The staff will attach an RFID-based EAS hard tag that locks onto an item just as a non-RFID hard tag does. When the tag passes through a gate's RFID reader, its ID number will be captured and the gates will sound an alarm, indicating an item is being stolen. If an item goes through the point of sale, however, its hard tag will be removed. Hardware vendors for the RFID interrogators and tags have not yet been identified.
Once RFID is deployed in a store, Livingston says, the increase in that location's sales ranges anywhere from 2 to 8 percent, though he calls that a conservative figure. Inventory accuracy is at 99 percent, Livingston says.
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READERS' COMMENTS
RFID with EAS
So if the item is sold at the POS but a EAS/RFID tag is left on, is the system smart enough to know its sold and not ring? Or maybe have a different sound of alert to tell the front end employee THIS IS SOLD BUT THE TAG WAS NO REMOVED. My point is why will RFID/EAS do that current EAS cannot.A RF frequency tag will always set off a system. I am curious if the action at the POS can alter the outcome at the door. And why use hard tags? go with something embedded no? Make it employee labor free.Isn't that the point of all this??
Posted By: J. Feretich 1/27/2010 at 7:08:31 AM
senior editor
: In the case of this deployment the EAS/RFID tag acts similarly to a standard EAS hard tag. It must be removed from the garment at the time of sale. If it isn't removed, the tag will be carried past the reader at the exit, the reader will capture the RFID number and trigger an alarm. The system is designed specifically for security only so there is no link between the RFID/EAS readers and the inventory or point of sale systems.
Posted By: C. Swedberg 1/28/2010 at 6:44:48 AM
Redundant EAS tag
If every item is already tagged, it seems silly to add a second tag of the same protocol for just EAS. Why not just flip a few bits on the existing hangtag at the POS to indicate sold/not sold ?
Posted By: M. Fein 1/29/2010 at 8:30:16 AM
senior editor
This EAS application is taking place in six separate stores that are not using the item level RFID hang tags. It is an unrelated pilot.
Posted By: C. Swedberg 1/29/2010 at 11:51:05 AM