Walgreens to monitor retail displays with RFID
The US-based drugstore chain Walgreen Co. is to install RFID-based sales display tracking systems from Goliath Solutions in more than 5,000 stores to analyse in real-time the sales impact of in-store displays.
In a multi-year agreement with Goliath, Walgreens will be working with fifteen consumer packaged goods (CPG) manufacturers to evaluate sales efficiency of the specially equipped display units.
The tracking system uses RFID tags and readers to wirelessly record when, how long, and approximately where displays are placed within each Walgreens store. Combined with point-of-sale information, an analysis of the resultant data will allow the company to design and implement sales displays that are more likely to drive increased sales. Currently, the retail industry gathers sales display efficiency data by having auditors visit a sample of stores nationwide, so cost savings are also expected to be a major benefit of the system.
Keeping sponsors happy
ComplianceThe system can also notify store managers which displays to put up or take downThe system also can be used to notify store managers of which displays to put up or take down. The correct positioning and timing of sales displays is often a problem where individual stores fail to comply with corporate instructions. Such a monitoring system could also be used to monitor and ensure compliance, as sales displays are usually sponsored by goods manufacturers, who can often specify not only the timing but also the positioning of the displays in-store.
According to George Riedl, Walgreens' senior vice president of marketing, "This tracking system will help us customise our merchandising on a store-by-store basis, and ultimately increase sales and profit per square foot. It will also help both our own purchasing department and our vendors evaluate past promotions and plans for future programmes."