Retailers looking to employ radio frequency identification technology as a means for improving store operations are driving growth of the RFID industry in general, according to a new report from RNCOS.

RFID tags can be placed on shipping crates and containers, allowing retailers to better track and manage their inventory. Some merchants are expanding on that use, leveraging item-level tagging to reduce stock-outs and improve stock replenishment speed and customer service. In turn, increased use of this technology has been a boon to the RFID industry, which is now producing more of these tags in response.

"It is expected that the overall growth in the RFID industry will outpace other automatic identification technologies, like barcode," the report notes. "The entry of new players, technological advancements, mergers and acquisitions, and increasing government support will keep on benefiting the global RFID market, which is estimated to grow at a CAGR of around 18 percent during 2011-2014."

Walmart, for example, uses RFID technology to track specific pairs of jeans and underwear, helping the company keep track of inventory levels.

This entry was posted by Retail Pro on Wednesday, April 11th, 2012 at 8:42 am .