Radio Frequency Identification (RFID) has grown unprecedentedly over the last decade. The technology is a great success in retail, healthcare, manufacturing, and supply chain industries offering automation in item finding, retail check-out, medical tool tracking, hospital access control (with UHF RFID and NFC), inventory management, and logistics automation with real-time location services (RTLS).
A survey by Accenture highlighted the fact that most retailers (80%) believe that the benefits offered by RFID technology cannot be replaced by any other technology. It also highlighted that only 5% of retailers surveyed were not considering RFID.
But that’s just about retail. RFID technology has been able to generate more value for businesses via automation in data capturing and identification whether it is healthcare, hospitality, event management, or supply chain.
In 2024, we also saw how retailers like Decathlon, Uniqlo, Walmart, and Amazon leveraged RFID to create self-scanning POS, a self-checkout experience for customers, allowing for shorter queues and faster check-outs. So, the burning question for the year 2025 is, are we to see more RFID-powered autonomous stores?
RFID-powered Self-checkout in Retail
All things to point to the fact that retailers are positively considering RFID technology for retail automation but RFID is not the only technology they are depending on. The Amazon Go, the self-checkout store concept developed by Amazon (the first Amazon Go store opened in Seattle in 2018), also leverages machine vision, IoT sensors, QR Code and CCTV cameras to create a completely autonomous self-checkout store where customers can just walk in, pick up groceries and daily essentials and leave, without having to interact with any store employee. You won’t even see any staff there.
Come 2025, we will see more self-checkout, autonomous stores that use technologies like RFID, IoT, and smart POS (Point of Sale) to offer enhanced customer shopping experience in retail stores. RFID labels on apparel, and groceries and integrated RFID readers on shopping carts ensure that customers can shop freely, without having to empty their carts at check-out. Personal shopper POS devices like the Zebra PS30 and PS30 Plus allow customers to shop while browsing the store. They can pick items and pay for them using the Zebra PS30 itself.
Retail businesses that depend on physical stores are also taking strong measures to compete with e-commerce retail as well given the fact that e-commerce retail sales amount to nearly 20% of all retail sales worldwide. Going forward, retailers are looking to diversify their sales and offer omnichannel retail including BOPIS (buy online, pick up in-store), BORIS (buy online, return in-store), etc.
RFID in Retail in 2025
RFID technology presents transformative opportunities for retailers and retail supply chain businesses in 2025. As a firm specializing in RFID, barcoding, and AIDC (Automatic Identification and Data Capture) solutions, EnCstore.com is well-positioned to explore how these technologies can enhance efficiency, accuracy, and customer experience in retail operations. Apart from RFID-powered self-checkout, and autonomous stores, RFID is bound to see increased adoption in retail supply chain, warehouse management, and back-end retail operations as highlighted by the Accenture survey. With RFID-based automation, retailers are expected to lodge an increased ROI of 10% and more.
With advancements in RFID tag designs, readers, and associated software solutions, retailers can streamline processes, reduce costs, and improve inventory management.
Let’s see how large retailers, brick-and-mortar retail businesses, and retail supply chain businesses can benefit from RFID technology implementation and new RFID trends in retail in 2025.
Key Benefits of RFID for Retailers in 2025
1.Enhanced Accuracy in Inventory with RFID
RFID technology allows for real-time tracking of inventory levels, significantly reducing discrepancies between recorded and actual stock. The heightened accuracy enables retailers to maintain optimal inventory levels and minimize stockouts or overstock situations.
2. Improved Supply Chain Visibility with RFID tagging
With RFID, retailers gain better visibility into their supply chains. RFID readers can automatically capture data from tags on retail products at various stages of the supply chain, incoming and outgoing, inventorying, etc., providing insights into where items are located and their status. Such transparency leads to better decision-making and collaboration with other retailers.
3. Streamlined Operations with RFID Automation
RFID automation reduces the need for manual counting and data entry, which can be time-consuming and error-prone. Unlike barcode technology, RFID offers a great advantage in identifying tagged assets and accurate tracking of these assets. By automating these tasks, retailers can allocate resources more effectively, allowing staff to focus on customer services and sales rather than inventory management.
4. Enhanced Customer Experience
RFID technology can improve the shopping experience of customers by enabling features such as self-checkout systems and personalized promotions. For example, RFID-enabled shopping carts can provide customers with real-time product information and suggestions based on their purchase history or preferences. With self-checkout kiosks, customers can shop and pay themselves, without having to interact with retail staff.
5. Data-Driven Insights
The integration of RFID with software solutions allows retailers to analyze data collected from RFID systems. Data from RFID inventory management systems and POS systems can reveal trends in consumer behavior, inventory turnover rates, and supply chain inefficiencies, empowering retailers to make informed strategic decisions.
Emerging Trends in RFID Automation in 2025
In 2025, retailers can adopt emerging trends that rely on RFID-based automation, including:
1.Smart Shelving and Inventory Management
In 2025, we can expect to see advanced RFID-enabled smart shelving that automatically tracks product levels and alerts staff when restocking is needed. Such innovations will help retailers maintain optimal inventory levels and streamline replenishment processes.
2. Integration of RFID Systems with AI and IoT
The convergence of RFID with artificial intelligence (AI) and the Internet of Things (IoT) will drive more sophisticated analytics and automation. Retailers will be able to predict inventory needs, enhance customer engagement, and optimize the supply chain in real time.
3. Sustainability Initiatives in Retail in 2025
As retailers focus on sustainability, RFID technology can play a role in tracking the lifecycle of products, ensuring transparency in sourcing and reducing waste. It also aligns with growing consumer demand for responsible retail practices, boosting recycling, reuse, and retail profits.
4. Contactless Transactions
The trend towards contactless transactions, accelerated by the pandemic, will continue in 2025. RFID technology supports seamless checkout experiences, allowing customers to pay for items simply by walking through RFID-enabled gates, RFID-enabled smart POS systems, and self-checkout kiosks. Many retailers such as Decathlon, Walmart, etc. are already benefitting from such technology integrations.
To summarize, as RFID manufacturing and supplier firms such as Zebra Technologies, Impinj, Ruddersoft, and EnCStore.com continue to develop and implement RFID and AIDC solutions, the benefits for retailers and supply chain businesses are clear.
With advancements in RFID technology and the emergence of new automation trends such as self-checkout, advanced inventory management, smart shelving, etc. retailers in 2025 will be better equipped to enhance operational efficiency, improve customer experiences, and achieve greater supply chain visibility.
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