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ECONOMICS OF EAS
By Robert DiLonardo
Specialty apparel and department store retailers are having difficulty expanding electronic article surveillance (EAS) programs to take advantage of source tagging. Only a few major apparel retailers, such as Hudson Bay Company, Ann Taylor Loft, J. Crew, and Kohl’s, actually source tag. There are several reasons for this situation. The recent recession and its impact on retailers’ financial results have constricted the amount of capital available to install EAS in more stores. There is yet to be a consensus on the most effective tag types – the paper hangtag, the sewnin fabric label, or the disposable plastic tag. Plus, the recent press about radio frequency identification (RFID) has slowed the procurement of EAS in all retail vertical markets, not just apparel.
read the full article (.pdf 1.623kb)
Understanding the Impact of RFID on Retail
By Walter E. Palmer,CFI, CPP, CFE
However, the biggest impediment to success, in my view, is the continued reliance on the “old economics” of store-by-store cost justification. Retail chains that are partially saturated with EAS are struggling with a conundrum: There can be no meaningful source tagging until EAS is cost-justified in all locations. But, cost justification will not occur without the economic benefits that accrue from source tagging.
read the full article (.pdf 752 kb) |
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