Greater RFID Benefits Than Expected At Danish Retailer ComputerCity

Inventory management with RFID has reduced status differences by 80% for this Nordic electronics retail chain, and the status count is faster and more accurate. ComputerCity's advantages gained in time and money are far greater than expected.

ComputerCity will be introducing Radio Frequency Identification (RFID) tagging to the chain's 9 other stores after a one-year pilot project and experience gained in one of the stores. The results are much better than expected, and ComputerCity will soon be reaping the full benefits for the entire chain of store operations.

"If goods are missing because of internal differences or shoplifting, we can track it and respond. We extended the RFID system with an integration to video surveillance. Thus we have video that shows when the RFID tag passes the scanners, and we can see who it is. If the product is put in the wrong place, the scan will also reveal it. We know exactly what the cause is, and we can respond so it does not happen again. For shoplifting we also have 100 percent proof of the product serial number and other details, as well as a picture of the thief as evidence for the police."

No control brings temptation
"The temptation may be too strong if employees feel there is no control," says 2Trace CEO, Michael Jensen, who delivered the ShopProtect solution for ComputerCity. "Here we have 100 percent control of all goods – every day – and employees are aware of it. Previously it could take up to three months - until the next status update - before shrinkage was found, and a dishonest employee could think that it was a free-for-all."

Development opportunities
ComputerCity can use tags to manage price signs and information on the electronic shelf labels. By placing a reader on the shelf it can retrieve information from RFIDs and show it to customers. And if the prices or other information changes, it can be controlled simply from the back room.