Report: Follow the Leader Brings Trouble in Retail RFID
An ABI Research analyst says retailers are underestimating the level of customization RFID will need. Their strategy of following Wal-Mart's approach, ABI says, is not a good idea.As the young RFID retail market moves through its experimental stages to eventual full deployment, many retailers "are finding problems and frustrations" because they are trying to emulate cutting-edge market leader Wal-Mart. "There is no cookie-cutter approach to RFID," said ABI research analyst and report author Sara Shah. "RFID manufacturersmany of them relatively new companiesdont understand retail. And many retailers dont understand how RFID can benefit them." Shah offered two retailers, Albertsons and Target, as examples. They followed Wal-Marts RFID strategy closely.
On the one hand, Albertsons and Targets "mandate was very similar to Wal-Marts," and "they do have similar supply chains and a lot of the same suppliers." But there are clearly differences and, Shah argues, those differences have not been given the appropriate weight.