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Rebecca Minkoff Adds RFID to More Stores, Boosts Sales

The technology enables shoppers to enjoy a personalized experience with recommendations based on the items they select.
By Mark Roberti

In addition, the customer receives recommendations for matching items. "RFID is important for this because she [the shopper] sees the designer's recommendations of what she should wear with the specific items she chose to try on," Minkoff states. "This is a very personal communication that has not existed before in retail. It's almost like Rebecca is there providing a recommendation for each specific customer. RFID is the basis for that."

The system also provides the retailer with data regarding each customer's in-store behavior—something that was previously not easy to acquire. "We know what items went into the fitting room," Minkoff explains. "We know what items converted [into sales] from the fitting room. We know what items, when paired with another item, had conversion. We had a new item that went into the fitting room 60 times in one store in the course of a week and was bought only once. There were 20 requests for different sizes, which means we had a fit issue."

The video wall at Rebecca Minkoff's L.A. store
According to Minkoff, 30 percent of customers entering the fitting room now order additional items that they had not picked up during their initial walk through the store. He credits the system with increasing the store's revenue.

"We've seen substantially higher apparel sales—as a percentage of total sales—than we planned, primarily as a result of our ability to track product entering the fitting rooms and remove friction in our customers' ability to ask for additional sizes and colors," Minkoff says. "Similarly, the ability to cross-sell and make additional sizes and colors available to consumers has led to a significantly higher conversion rate—versus the industry average—for customers who enter our fitting rooms."

Rebecca Minkoff is considering using the RFID tags for inventory management and replenishment. What's more, the retailer is looking to install the RFID-enabled fitting-room system at its two other stores, located in Hong Kong and South Korea.

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