American Apparel Deploys RFID at the Item-Level

American Apparel rolls out radio frequency identification (RFID) at the item-level. The apparel retailer tracks individual items as they are tagged at the company's manufacturing facility in Los Angeles, received in its retail stores, stored in the stock rooms at the stores, and then placed onto the sales floor and ultimately sold at the point-of-sale (POS).

By using an item-level RFID system, American Apparel is able to fulfill its vision of consistently offering merchandise in every size and color on store floors at all times, creating a more rewarding customer experience and simplifying the inventory process for in-store staff. Store associates can now take inventory much more quickly and with greater accuracy. Replenishment activities have been dramatically improved resulting in on-floor availability at over 99%. Weekly inventory processes can now be accomplished with just two people in two hours instead of requiring four people for eight hours as previously needed. As a result, store associates have more time to service customers and improve store merchandising in order to make sought out items easier to find.

Known for its vertically integrated business model and "Made in Downtown LA" clothing, the company deploys the integrated solution delivered by Vue Technology is comprised of TrueVUE hardware and software products, fixed and mobile RFID readers and antennas from Motorola's Enterprise Mobility business, and tags and printers from Avery Dennison.

The initial deployment of American Apparel's roll-out took place at the company's Columbia University location in New York City. To date, over 40,000 individual pieces of merchandise have been tagged so that store personnel can use fixed and mobile RFID readers to track inventory on a real-time basis, contributing to a well-stocked store and improving customer service through timely responses to customer questions regarding in-store merchandise.

"American Apparel takes pride in being a vertically-integrated manufacturer, distributor and retailer of fashionable, high-quality basics, and we embrace any technology that allows us to further realize this vision to better serve our customers," said Zander Livingston, RFID technology director for American Apparel. "We look forward to deploying the technology on a larger scale so that our entire organization can leverage the value of RFID to improve overall inventory management processes and enhance our customers' shopping experience."

By deploying the technology in additional stores, American Apparel expects to increase sales and customer service by having real-time visibility into product at nearby stores, enhancing the intra-store transfer process to balance stock. Furthermore, the retailer will be able to respond more efficiently to market behavior by using RFID to record and report on purchases, not only within one location, but across a region of stores.

American Apparel plans to implement its RFID inventory system across each of its 17 stores in the New York metropolitan area over the next three months, with plans to eventually deploy the solution to an additional 120 North American locations.