B:MING Clothing Stores Try RFID

Jan 16, 2012Tokyo-based retailer BEAMS Co. Ltd. has incorporated radio frequency identification technology at five B:MING Life Stores that it recently opened in Japan. The stores are employing RFID technology for both tracking inventory and improving efficiency at the point of sale (POS). Two of the locations opened in September 2012, followed by three more at the beginning of this year, all equipped with EPC Gen 2 ultrahigh-frequency (UHF) RFID technology provided by Fujitsu.

The solution tracks tagged merchandise, as along with shopping carts and hangers, thereby affording the company better control over the locations of these assets, as well as products for sale, throughout the store. The technology has reduced the amount of time that staff members spend tracking goods through the shipping and receiving processes, the company reports, down to one-third of what it had been using the manual inventory-counting method. What's more, the RFID-enabled POS solution has increased sales, due to a shorter checkout time that makes purchases easier for customers.

Based on the system's success at the first two stores, during fall 2012, the company proceeded to open three additional locations equipped with the technology. The retailer plans to install the system at approximately five stores every six months, until all of its Japanese locations are equipped with RFID. The solution was installed in order to improve distribution and in-store operational efficiency, says Naomi Ogawa, a Fujitsu spokesperson.

The technology consists of Fujitsu's fixed readers, as well as Pastel Plus RFID software provided by Fujitsu subsidiary Glovia Services Inc. The Pastel Plus software is integrated with Fujitsu's TeamSTORE/S POS solution, so that sales information can be shared with the RFID data to access pricing at the point of sale, update inventory data regarding merchandise on hand and issue alerts related to replenishment requirements.

BEAMS sells a variety of BEAMS-brand apparel and accessories for men, women and children. It recently launched its new B:MING Life Stores, oriented toward families and intended to make shopping fun for kids and their parents. The stores include a variety of technologies to make the shopping experience more interesting, including motion sensors that can detect when a customer stands before a large display, and then present that person's image wearing the brand's clothing. For the new store chain, BEAMS also wanted to make the purchase process simpler than at traditional stores, where workers scan bar codes and total up the sales amount for each customer. Moreover, the company sought to ensure that merchandise did not run out, and that it could be inventoried easily by the staff.

Each store's RFID installation is basically the same, involving two Fujitsu Frontech fixed readers—one installed at each POS terminal. Staff members utilize an Atid handheld reader to inspect incoming shipments, as well as to count inventory within the backroom and on store shelves. The technology is also in use at BEAMS' distribution center.

First, goods are tagged with Tentac EPC Gen 2 RFID tags at BEAMS' DC in Funabashi, Japan. Each tag stores a unique ID number linked to the product's stock-keeping unit (SKU) data, as well as the time and date, in the Glovia software residing on BEAMS' back-end system. Prior to being shipped to a BEAMS store, the tagged items pass a fixed reader on a conveyor belt, at which time the tag is interrogated before that item is packed and loaded for delivery. This read event updates the software, indicating which products are being shipped to a specific store.

Once the merchandise arrives at a store, staff members unpack boxes and read each tag via an Atid RFID interrogator prior to placing the goods on shelves in the backroom or on the sales floor. The software then updates the system to indicate which items were received, and when this occurred. To track the inventory stock in the storefront and back room, staff members carry the handheld throughout the store, capturing each tag's ID number. The stores have also applied the UHF tags to other objects, such as hangers and shopping carts, so that workers can periodically track in which parts of the store these assets are located. By reading the merchandise's RFID tags during inventory checks, employees can reduce the number of garments that end up missing or mis-shelved. Inventory counts can be accomplished in about one-fifth the time it took to perform the count manually, Ogawa says, thereby reducing logistics costs by two-thirds.

Upon selecting merchandise for purchase, a customer brings those items to the sales counter, where a fixed reader is installed under the counter. The products' tags are interrogated, and the Glovia system determines which goods are being purchased and shares that data with the POS software, which then calculates the price. The Glovia system updates the inventory status to indicate which items have been sold, and can issue alerts in the event that additional merchandise needs to be ordered.

The result is that goods are checked out faster at the cash register, BEAMS reports. Additionally, staff members have more time to spend helping customers with their purchases, and items are more likely to be on the shelf.

The company also intends to install RFID readers at its shelves and within fitting rooms, in order to provide real-time data indicating where particular products are located. The readers would detect when an item was lifted from the shelf, as well as when it was returned. This information, according to a BEAMS spokesperson, "will enable us to track individual products inside the store, thus helping us grasp the volume of customer interest—whether items are being carried to the fitting room or not, and whether they are taken to check out or returned to the shelves."

The spokesperson adds, "If the system performs well after a year of actual use and a dozen more store openings, we may consider this system for our existing chain of stores." There are approximately 110 BEAMS shops nationwide.