RFID PILOT PROJECT SHINES A LIGHT INTO THE HAZY WORLD OF SHOP STOCK
New technology pioneered on the sales floor for the very first time in real time
The Karstadt Warenhaus GmbH chain of department stores is updating its stock management system with the latest RFID technology to give an accurate picture of current stock levels including the whole range of colours and sizes. The technology will be introduced to one of the company’s stores as a pilot project in August. The pilot aims to ensure that customers are always able to find what they’re looking for on the shop floor, as well as improving a variety of internal sales procedures and a complete overview of the stock. Karstadt’s clients and the company will therefore benefit from this new technology. The project is being carried out in collaboration with ADT, Europe’s leading provider of electronic fire and security solutions, and RF-IT-Solutions, the leading supplier of RFID software and technology consulting.
RFID stands for “Radio Frequency Identification” and enables trouble-free data transfer via radio waves. Karstadt is the first retailer in Germany to test this technology in a regular retail environment. Before its introduction within the store the technology will be tested under laboratory conditions by project partners ADT and RF-IT-Solutions.
The pilot project will focus on the full range of jeans and denim wear held at a Karstadt branch. A chip attached to a label on the article of clothing ensures its location is always known. This enables the shop assistants to tell at a glance how much stock is still on the shelves and in the stock room at the branch. This solution will replace the annual, time consuming stock take. The frequency of the checks will also prevent ‘out of stocks’, improve the availability of goods and enable price changes to be implemented much more quickly.
The project also meets the suppliers’ approval: together with Karstadt they joined forces in a working group to pool their experiences with RFID. The objective is a faster delivering process to be able to meet the demand more quickly and therefore increasing the clients’ satisfaction.
To guarantee data protection, the chip will be removed from the item at the till. However, customers will still be advised that this new technology is being used. Upon successful completion of the pilot project the technology will be introduced into all Karstadt department stores.
Rainer Jilke, Departmental Head of Process Organisation Purchasing and RFID Manager at Karstadt: “This is a ground-breaking project and generates added value for our customers and the company. Our decision to use ADT and RF-IT Solutions was based on the good relationship that we have enjoyed with both of these project partners over many years combined with their great skill.”
About ADT
ADT, part of Tyco Fire & Security, designs, installs and services electronic security systems for retail,
business and government and home intruder protection and detection systems. Sensormatic® is a
leading brand of ADT. In Europe, ADT's products include alarm systems and integrated security
applications that link access control, CCTV, electronic article surveillance and source tagging
systems. They are used to deter thieves and protect people, goods and property.
About Karstadt
Rudolph Karstadt opened his first store on May 14, 1881 in Wismar (Germany). 125 years after it was founded, Karstadt Warenhaus GmbH – a wholly owned subsidiary of KarstadtQuelle AG – is one of
Europe’s leading department store companies. Between 2.5 and 3 million customers visit its 90
department stores and 32 Karstadt Sport stores daily. The Management Chairman is Peter Wolf who
is also a member on the Management Board of KarstadtQuelle AG (Essen).
About RF-iT Solutions
RF-iT Solutions GmbH, Graz (Austri |