M&S to roll out next-gen RFID tags from 2011

The group’s new chief executive Marc Bolland has signed off a move to the new version of the RFID tags, which have a smaller data chip than the first generation.

M&S’s general merchandise packaging team, which is led by Kim Phillips and covers all the retailer’s non-food products, is leading the project. Trials of the new RFID tags are expected to kick off in the first quarter of 2011.

M&S is among the largest users of RFID tags globally, using around 100m tags every year. It began using RFID in 2004 and now uses the technology on around 18% of all its general merchandise products.

A spokesperson for the retailer said: “We’ve found that RFID is most beneficial in our high-value departments where there are complex sizing requirements, such as suits and tailoring, as it allows us to manage our stock levels better and ensure we have the right product mix on display.”

Potential cost savings
The second generation of tags have a smaller data chip which would allow the size of labels and tickets to be reduced. The spokesperson said that this would offer more flexibility and potential cost savings.

While the retailer hopes to expand the use of RFID, especially in its international business and for men’s shoes, it said that the 10p cost of each tag meant that the technology was not yet cost-effective for basic products such as socks.

The spokesperson added that further RFID technologies, such as printed electronics, were being considered although the project was at an early stage.

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