Walmart uses RFID tags at the item level. This means every item within a product category mandated to have an RFID tag has an RFID label somewhere on the item or its packaging.

For instance, all apparel items in Walmart stores have been outfitted with RFID tags since 2020. Anyone purchasing a piece of clothing from Walmart, such as a ladies’ blouse or pack of socks, may have noticed an RFID label embedded on the price tag or affixed near the bar code.

While relatively meaningless to the customer, the Radio Frequency Identification (RFID) tag serves several logistic purposes for Walmart and its workers. These include:

• An RFID tag can store product information such as item description and price and provide real-time location in the supply chain.
• RFID tags can be scanned up to 40 feet from a reader without a direct line of sight, allowing items to be found quickly.
• Several RFID tags can be scanned simultaneously, substantially decreasing receiving, sorting and fulfillment times.
• RFID solutions allow managers to track inventory changes in real time and alert them when inventory items are low or need replenishing.

Benefits of RFID for Walmart and Retailers

For Walmart, and other retailers, the chief benefits of using RFID technology at the item level include the following:

• Create a better shopping experience. RFID tags for retail allow salespeople to easily locate inventory items for their customers and restock inventory more accurately.
• Improved shipping accuracy. RFID tags increase sorting and packing accuracy, decrease fulfillment times, and track items while en route to the customer.
• Increased replenishment efficiency. Retailers can better understand the best time to reorder regular stock items, preventing a backlog of outdated stock and refilling out-of-stock items faster.