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Store uses RFID technology to shape the future of retail

18 June 2003 News

International retail company METRO Group is using radio frequency identification (RFID) technology within what is said to be the first broad, real life implementation of RFID technology in a European supermarket environment. METRO Group will store product-related data on the used RFID-enabled tags to improve customer service and increase supply chain efficiency in retailing. These tags become redundant upon leaving the store.

In April, METRO Group opened an extra future store in Rheinberg, Germany. The store, which is geared towards revolutionising the shopping experience, has been refitted to include state-of-the-art technologies, and is using RFID I.CODE solutions from Royal Philips Electronics for automatic product identification. By improving customer service and increasing supply chain efficiency in retailing, METRO Group says its aim is to demonstrate and also further the use of innovations and systems that can ease the life of retailers and customers.

In terms of item level identification, individual products, like CDs, DVDs and videos, are tagged using an I.CODE SLI-based system that incorporates theft protection. This system, which operates at 13,56 MHz and at a range of up to 1,5 m, is linked to RFID multimedia kiosks that enable customers to simply swipe a CD or DVD and select a preview of the album or film they are considering purchasing. Cosmetics and food products are also labelled and put onto smart shelves. This application provides realtime inventory and expiry date control, assisting with the generation of sales data as well as the location of misplaced items. Philips' I.CODE technology is also used in the store's customer loyalty card, offering customers access to information and multimedia services around the store and at the point of sale.

To improve inventory management, Philips' ultra high frequency (UHF) I.CODE HSL technology is used to track pallets and boxes. Capable of reading at a distance of up to seven metres, depending on local regulations, I.CODE HSL will assist with the identification of goods from distribution centres to the shop floor. This not only assures product availability in the shop but also offers full visibility across multiple stages of the supply chain.

"The aim of the METRO Group Future Store Initiative is to promote the modernisation of the retail industry at a national and international level by implementing solutions that will shape the future of retail," said Zygmunt Mierdorf, member of the management board of METRO Group. "The opening of the Rheinberg Future store enables us to analyse technologies like RFID that will have a decisive impact on the way we do business over the next five to 10 years, and to develop uniform standards for retailing that can be implemented worldwide. Philips' I.CODE technology, one of the world's leading semiconductor RFID solutions, was the natural choice, offering us a range of compatible product variants that can be used in a number of different applications in-store."

Said Reinhard Kalla, GM of identification at Philips Semiconductors: "Philips, a leading developer of RFID chip solutions, has sold more than 500 million RFID ICs worldwide and the retail industry is one of our fastest growing markets for smart tags and labels. We are proud to be involved in a project that will evolve the use of RFID in large scale shopping environments and pave the way for adoption on a global scale."

In line with Philips' strategy, all I.CODE ICs used are compliant to existing or evolving standards to drive high volume markets by ensuring multiple sourcing for all components. Philips uniquely combines HF and UHF solutions with proven high volume manufacturing capabilities.

For more information contact Avnet Kopp, 011 809 6100, [email protected], www.avnet.co.za





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