Wal-Mart, based in Bentonville, Ark., is not alone in its pursuit of RFID technology, which is expected to contribute directly to the bottom line by boosting sales through more efficient stocking of store shelves. Studies show that a significant number of products are sold out during retailers' busiest shopping days.
"It is imperative that we have the merchandise the customer wants to buy when they want to buy it," Linda Dillman, chief information officer for Wal-Mart, said in a statement.
Other large retailers that have jumped on the RFID bandwagon include Target, Germany's Metro AG and Tesco PLC of the United Kingdom.
Besides better stocking of shelves, RFID tags, which contain silicon chips with more detailed product information than a typical bar code, are expected to help reduce warehouse and store theft and the amount of counterfeit merchandise. In addition, the technology is expected to assist in product recalls and returns and warranty processing.
In the trial launched Friday, RFID tags on pallets and cases are read at the dock doors of the distribution center, letting warehouse workers and suppliers know the products have arrived. Cases are then removed and processed as usual through the warehouse.
