advertisement
advertisement

Wal-Mart: 400 More Stores To Be RFID-Enabled This Year

Written by Evan Schuman
May 2nd, 2007

The world’s largest retailer on Tuesday reaffirmed it’s support for RFID, citing one-third fewer out-of-stocks, slashing of excess supply chain inventory and reduced customer waits.

In a statement issued Tuesday, Wal-Mart CIO Rollin Ford said that RFID-supported pallet locators are now being used at Wal-Mart subsidiary Sam’s Club “increasing inventory accuracy and reducing member waiting time as well as future benefits in pharmacy accuracy, grocery freshness, software, CD and DVD authentication, and 30-second store checkouts.”

He pledged to add an additional 400 RFID-using Wal-Mart stores by the end of this fiscal year.

“In the near future, customers may be able to enjoy advantages such as automatic warranty activation on electronics, freshness assurance on foods thanks to cold chain monitoring and enhanced product safety as a result of faster, more accurate recalls and better freshness monitoring,” Ford said.

Ford even tried to make the argument that RFID?in a roundabout way?is helping the planet and the environment.

“Our focus on using RFID to improve in-stocks for our customers means eliminating extra trips they may make to our store or to others,” he said. “On a daily basis, more than 24 million people shop our stores. If 100,000 extra trips are avoided by having items in stock, we will save customers $22.8 million a year in gas savings and reduce greenhouse gases by 80,209 metric tons.”

Wal-Mart’s influence among major U.S. businesses?and especially among consumers goods manufacturers and other retailers?is not to be underestimated. It’s clear that a $345 billion retail chain can move markets, but Wal-Mart was one of the pioneers of RFID so signs of them pulling back from RFID?and there have been such signs, from time to time?could spell major troubles for RFID.

Just last week, EPCGlobal unveiled standardized product descriptors for RFID, a move that one EPCGlobal official said?for the first time?made business RFID returns-on-investment practical.

Wal-Mart issuing this statement from Ford?based on a speech he made this week in Florida?is intended to tell the industry to stick with RFID, at least a bit longer.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.