RFID Journal Editor Mark Roberti's Blog
Why Isn't Wal-Mart Killing the Tags?
July 27, 2010
A member of my staff told me it didn't makes sense for Wal-Mart Stores to tag clothing and not take advantage of the kill command that would permanently disable the EPC RIFID tag, or to utilize some of the privacy features built into the new chips from Impinjand NXP Semiconductors. But actually, it makes good business sense. Here's why: Wal-Mart is currently tracking men's jeans and basics, plus some cases of consumer packaged goods (see Wal-Mart Relaunches EPC RFID Effort, Starting With Men's Jeans and Basics, Wal-Mart Takes a New Approach to RFIDand Privacy Nonsense Sweeps the Internet). I would guess that less than 1 percent of the items the retailer will sell this year will have an EPC RFID transponder on it. In order to kill those tags, Wal-Mart would need to install readers at every checkout counter. Many stores have 40 or more checkout counters. Let's examine the cost, using round numbers and some rough estimates. If you multiply 4,000 stores by 40 checkout stands, Wal-Mart would need roughly 160,000 readers to kill the tags. At $3,000 apiece, that would amount to $480,000,000. Clearly, it doesn't make sense to spend half a billion dollars to kill tags on such a small percentage of products. That doesn't mean Wal-Mart isn't concerned about privacy. Whatever you might think of the world's largest retailer, it clearly doesn't want to lose customers over privacy issues related to RFID. So it has asked its apparel suppliers to place an EPC RFID transponder in each hangtag, label or exterior packaging, which will then be discarded before the consumer dons the item. What's more, since it doesn't have readers at the point of sale, Wal-Mart cannot associate a specific item with a particular individual. Therefore, there is no danger that the retailer could, for instance, track me in the store just because I'm wearing jeans it sold me. Wal-Mart has not revealed to me its long-term plans, but I do believe it has thought a lot about the privacy implications of employing EPC RFID technology in its stores. Clearly, the retailer intends to tag more products over time, and there will come a point at which installing readers at the point of sale will make sense. After all, if every item were tagged, RFID could automate checkout and reduce long lines, which consumers would love. At that point, I believe Wal-Mart will likely take advantage of the new features in the Impinj and NXP chips. It won't kill the tag, but rather mask the Electronic Product Code (EPC) with zeros or a random number, and it will limit the read range. That will protect consumers, while enabling Wal-Mart to restore the EPC if the item is returned. By that time, consumers—and, one hopes, the media—will be more knowledgeable about RFID, and people will be comfortable with the fact that their privacy is being protected.
POST A COMMENT
What CEOs of RFID Companies Need to Know
Posted on: 12/18/2012
Tools for UHF Deployments
Posted on: 11/13/2012
RFID Journal Publishes Article No. 10,000
Posted on: 11/6/2012
Where to Find Good RFID Leads
Posted on: 9/27/2012
Talk to End Users About Their Business Problems
Posted on: 4/2/2012
RFID for a Good Cause
Posted on: 3/23/2012
About That Untapped Pool of Customers
Posted on: 3/15/2012
Hello! I'm Ready to Buy an RFID Solution
Posted on: 3/13/2012
Is There an Untapped Pool of RFID Customers Somewhere?
Posted on: 3/12/2012
How Small Companies Can Market RFID Successfully
Posted on: 3/9/2012
5 Common Mistakes Made by RFID Marketers
Posted on: 2/29/2012
Veterans Health Administration Seeks RTLS Experts
Posted on: 1/28/2011
How Do You Value Information?
Posted on: 11/17/2010
Maximizing Exhibitor ROI at RFID Journal LIVE! 2011
Posted on: 11/16/2010
RFID Could Reduce Return Fraud—a $14 Billion Problem
Posted on: 11/9/2010
Seeking Judges for the RFID Journal Awards
Posted on: 11/8/2010
Hong Kong RFID Awards 2010 Announced
Posted on: 10/20/2010
Some Positive Coverage of RFID
Posted on: 10/19/2010
More Musings on Moore
Posted on: 9/23/2010
More Free Advice for RFID Vendors
Posted on: 9/22/2010
Free Advice for RFID Vendors
Posted on: 9/21/2010
Inside an RFID Industry Roundtable
Posted on: 9/17/2010
Wal-Mart's President Says EPC RFID Strategy Is Working
Posted on: 9/16/2010
Are RFID-Enabled Credit Cards Safer Than Magstripe Cards?
Posted on: 9/15/2010
Technology Predictions Aren't Always Accurate
Posted on: 9/14/2010
Should We Be Tracking Kids With RFID?
Posted on: 9/13/2010
Internet of Things Event in Tokyo
Posted on: 9/8/2010
The Future is Not Inevitably Bleak
Posted on: 9/7/2010
The RFID Privacy Conundrum
Posted on: 8/27/2010
Using RFID to Improve Online Availability
Posted on: 8/26/2010
Coca-Cola Event Exploits RFID on Facebook
Posted on: 8/25/2010
Awarepoint's Big RTLS Music Video Contest
Posted on: 8/24/2010
PBS NewsHour Responds to RFID Journal
Posted on: 8/19/2010
PBS NewsHour Misinforms Viewers on RFID
Posted on: 8/16/2010
Academic Navel Gazing Continues
Posted on: 8/12/2010
A Privacy Expert’s Misguided View of RFID
Posted on: 8/11/2010
Please Contribute to the Sinclair Laing Memorial Scholarship Fund
Posted on: 8/9/2010
Using RFID to Solve Postal Address Problems
Posted on: 8/6/2010
BNET Blogger Spreads False Info About Wal-Mart and Privacy
Posted on: 8/5/2010
RFID Not at Fault in Passport Test
Posted on: 8/2/2010
Posted on: 7/27/2010
Privacy Nonsense Sweeps the Internet
Posted on: 7/26/2010
Thank You, Bill Hardgrave
Posted on: 7/9/2010
Staff Spread Too Thin? RFID Can Help
Posted on: 6/22/2010
ABC Eyewitness News Presents Selective Facts About RFID Credit Cards
Posted on: 5/28/2010
Presentations now available
Posted on: 5/6/2010
Do You Want to Be an RFID Gorilla?
Posted on: 4/2/2010
Why Contextual Marketing Works
Posted on: 3/30/2010
Would Geoffrey Moore Validate Your Business Model?
Posted on: 3/17/2010
The Biggest Mistakes Vendors Make at Trade Shows
Posted on: 3/9/2010
The Biggest Mistakes RFID Marketers Make
Posted on: 2/28/2010
When Will RFID Become a Mainstream Technology?
Posted on: 2/23/2010
Build the Whole RFID Solution
Posted on: 2/18/2010
RFID Deployments Rarely Start in the C-suite
Posted on: 2/12/2010
Be wary of hotel solicitations
Posted on: 2/7/2010
Start Blogging
Posted on: 2/5/2010
Welcome to the all new RFID Connect
Posted on: 1/26/2010
WRITER’S BIOGRAPHY
Mark Roberti
Founder and Editor
RFID Journal
Add them to my Contact List
Recommend this blog
BLOG DESCRIPTION
Mark Roberti is the founder and editor of RFID Journal. His blog focuses on all aspects of radio frequency identification and related technologies.
Latest Blog Posts
Dallas Women in Small Business Opportunities
UHF RFID passive tags make their distance to vehicle management applications
Veteran Affairs to Install RFID in Hospitals across America
CSL CS6720 Vehicle Access Control Label
Le champ des possibles du NFC illustré par les Orange NFC Awards
Advertisement for strategic business partners across the globe