By September 2, 2022, all Walmart suppliers providing toys, household items, electronics, and sports goods must equip each item with a UHF RFID tag. Walmart shared on its website that this is an extension of the RFID authorization they introduced earlier in 2020, which required products in a few other departments such as clothing, jewelry, and tires to be tagged with RFID chips.

RFID allows Walmart to track its inventory, which helps manage shrinkage. This includes not only theft or shoplifting but also items that never reach the shelves due to damage or being taken by employees.

Walmart uses RFID tags at the item level. The company shared on its website, "This means that every item in the product categories required to have RFID tags will have an RFID tag either attached to the item itself or its packaging."

For instance, all clothing items in Walmart stores have been equipped with RFID tags since 2020. The company added, "Anyone who has purchased a piece of clothing from Walmart, such as a women's shirt or a pack of socks, may have noticed an RFID tag embedded in the price tag or attached near the barcode."

RFID can help Walmart reduce theft.

Most retailers use RFID, but Walmart has achieved complete transparency in inventory by tagging every item. This has several advantages in terms of supply chain and inventory tracking.

Walmart has shared some methods of tracking inventory using RFID tags:

RFID tags can store product information such as descriptions and prices, and provide real-time locations within the supply chain.

RFID tags can be scanned up to 40 feet away from the reader without direct line of sight, enabling quick item location.

Multiple RFID tags can be scanned simultaneously, significantly reducing receiving, sorting, and fulfillment time.

RFID solutions allow managers to track inventory changes in real-time and issue alerts when inventory items are low or need replenishment.

RFID can also prevent theft at all levels, including both employees and customers. This could include tracking stolen items from one store location and returning them to another.

Bill Hardgrave, who founded the RFID Lab at the University of Memphis, spoke about using RFID to prevent theft at the NRF's "Big Show."

"Especially for chain stores—they steal from one store and return it to another," Hardgrave said. "With RFID, you can catch it when you get full visibility through the point of sale." Retail Drive reported.

Employee theft accounts for about one-third of all shrinkage. RFID enables retailers to know their true inventory, allowing them to pinpoint losses when they occur. Fraudulent returns accounted for 13.7% of the 743billioninreturnslastyear.IfRFIDallowsretailerstoshutdownchannelsformonetizingtheft,itcouldsaveapotentialcostof101 billion.

Source: RFID世界网