Store owners are constantly searching for the next strategy to boost their bottom line.
We often look to marketing campaigns, store layout changes, or seasonal discounts to drive revenue. However, there is a powerful tool often overlooked as merely an operational necessity rather than a sales driver: Radio Frequency Identification (RFID).
While many associate RFID purely with logistics, its impact on the customer experience and sales performance is profound. If a customer cannot find the size or style they want because your system says it is in stock when it isn’t, that is a lost sale.
Here is how implementing RFID technology can transform your operations and directly increase your sales figures.
Implementing RFID unlocks data accuracy that traditional barcode systems simply cannot match.
According to Milestone’s data, sales can increase by 2%-30% simply by implementing RFID.
Here are the six key areas where this technology makes a difference.
Traditional stock-taking is labour-intensive and often requires closing the store or paying staff for overtime. RFID handheld readers can read hundreds of tags per second without needing a direct line of sight.
This capability creates a massive efficiency gain, with stock-take times decreasing by 75% to 92%.
When your staff spend less time counting boxes in the back, they spend more time on the floor assisting customers and closing sales.
Shrinkage (theft and loss) is a major profit drainer in retail. Traditional security gates beep when an item passes through, but they rarely tell you what is leaving the store.
RFID systems provide intelligent insights.
The antenna monitors stock leaving the premises, determining if it has been legitimately purchased and telling you exactly which items triggered the alarm. This allows you to replenish that specific item immediately, ensuring the next customer can still find it on the shelf.
Inventory inaccuracy is one of the biggest barriers to sales. The Auburn University RFID Lab found that without RFID, the average retail inventory accuracy is only around 63%. With RFID, that figure shoots up to over 95%.
Because each RFID tag has a unique ID, items are never double-counted. When you trust your data, you can confidently promise stock availability to customers, whether they are in-store or checking your stock levels online.
Nothing kills a sale faster than an "out-of-stock" scenario. In fact, studies by GS1 US suggest that RFID can reduce out-of-stock instances by as much as 50%.
RFID enables "Live Monitoring," providing 24/7 visibility into your inventory. This ensures you keep stock at optimal levels—reducing slow-moving items and ensuring high-demand products are replenished instantly. If the product is available, the sale can happen.
Long queues are a deterrent for shoppers. If a customer sees a 15-minute wait to pay, they may abandon their purchase entirely.
RFID creates a frictionless point-of-sale environment. Because tags do not require a line of sight, a cashier can scan multiple items in seconds without searching for a barcode. This speed significantly reduces wait times, leaving customers with a positive final impression of your brand.
For larger retailers, the disconnect between the warehouse and the shop floor is often where sales are lost. RFID allows warehouses to monitor vast amounts of stock and track movement between different sections.
This ensures the correct products and quantities leave the warehouse and arrive at the store. When your supply chain is accurate, your shelves are full, and your sales potential is maximised.
Milestone has been empowering businesses to safeguard their stock and improve efficiency for over 28 years.
With a 98% satisfaction rating from over 300 satisfied customers, including major brands like Woolworths, Spar, and Makro, we understand the unique challenges of the retail environment.
If you are ready to see how accuracy can translate into revenue, it is time to upgrade your systems.