Chico's Gains Inventory Visibility with RFID

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Chico's Gains Inventory Visibility with RFID

10/20/2014
With a strong focus on in-store innovation and evolving its omnichannel retail strategy, Chico's FAS partnered with Tyco Retail Solutions, a provider of performance and security solutions, to address inventory accuracy and visibility challenges in 13 Soma Intimates pilot stores.
 
Store associates in Soma can now access accurate, real-time inventory information in one place to better manage their deep merchandise assortment, helping to drive sales and customer satisfaction. The ability to have this level of inventory accuracy fosters confidence in associates to provide a better customer experience.
 
"Our core value remains consistent: provide the most amazing customer service," says Ken Silay, director of technology, research and innovation for Chico's. "Innovation is an integral part of our mission to create a great customer experience. With RFID-based inventory intelligence, we can enhance the opportunity to have the right product available at the right place, at the right time to satisfy our in-store and omnichannel shoppers. Increasing our inventory accuracy helps minimize lost sales and out-of-stocks, keeping our customers happy and associates more productive on our journey we've discovered innovation is always in fashion."
 
Dedicated to enabling customers to shop anywhere, anytime and anyhow they choose, Chico's has mandated that all locations and channels must have visibility into accurate and timely inventory availability in order to support its omnichannel initiatives.
 
The use of RFID in Soma stores provides this visibility into items across all pilot stores and distribution centers, extending from store receipt to customer purchase, and through the exit door. Insight into all channels at all times helps to ensure customer satisfaction and limits lost sales due to inventory discrepancies or lack of item availability.
 
Soma store associates have responded positively to the new RFID capabilities because it empowers them to do their jobs more effectively and efficiently, delivering maximum customer service. Thus far the RFID initiative has delivered compelling results in this pilot store group. Weekly full-store inventory counts enable Soma to maintain a 90-95% accuracy everyday so that associates can easily fill-in the merchandise as needed. This level of accuracy ensures customers will have the items they desire when they want, preventing shopper disappointment.
 
While shrink had not been a significant problem for Soma, it has also gained insight into store loss prevention. With RFID read points at door exits, the stores gained insight into specific items lost, not exactly when (and if) they left the store.