The RFID opportunity: Walmart’s initiative and ARC-certified labels

Radio-frequency identification (RFID) technology is no longer a futuristic concept, it’s a driving innovation reshaping the retail landscape. With Walmart’s RFID initiative expanding beyond apparel into multiple product categories, label converters are at the forefront of a game-changing opportunity. With ARC-certified (Auburn RFID Lab Certification) RFID labels, converters can capitalize on this initiative, enabling retailers to streamline operations, ensure compliance, and improve inventory accuracy.

Here’s a closer look at why Walmart’s RFID program and ARC-certified labels present such an immense opportunity for converters and how they can prepare for this shift.

Walmart’s game-changing RFID initiative

Walmart, a retail giant that operates over 10,000 stores globally and generates more than 600 billion USD in annual revenue, is leading the charge in RFID adoption. Initially implemented in the apparel sector, Walmart is now expanding its RFID initiative to additional categories, such as electronics, sporting goods, toys and housewares. This phased rollout aims to revolutionize inventory management and drive operational efficiency at an unprecedented scale.

Why Walmart is betting big on RFID

RFID solves many inventory-related challenges that traditional barcodes face. Here’s what Walmart seeks to achieve with its RFID expansion:

• Better inventory accuracy: RFID’s ability to track products from source to shelf eliminates errors, reduces theft and ensures products are in the right place at the right time.
• Confidence in buy online, pick up in store: Customers can trust that products listed as ‘in stock’ online will truly be available when they arrive at a store.
• Optimized stock levels: Smarter inventory reduces overstocking and stockouts, improving sales and reducing waste.
• Efficient operations: Faster and more accurate inventory checks mean less manual labor and improved productivity.

Walmart’s initiative is not just a corporate mandate; it’s signaling a broader retail trend. Industry leaders such as Nordstrom, BJ’s Wholesale Club and Dick’s Sporting Goods are also requiring RFID compliance, proving that RFID is becoming a non-negotiable standard.

What’s ARC certification, and why should converters care?

ARC certification, provided by the independent certification body at Auburn University, ensures RFID tags meet the performance standards set by industry leaders, including Walmart. By setting consistent benchmarks for encoding, readability and durability, ARC enables suppliers to confidently use RFID tags that work seamlessly across retail supply chains.

For label converters, ARC compliance is the clear path to meeting retailer mandates and avoiding costly disruptions. With more than a dozen retailers now requiring ARC-certified RFID tags, suppliers can confidently use certified tags to ensure their products meet the necessary standards for seamless distribution.

Key benefits of ARC certification for converters

• Seamless compliance: Labels pass rigorous testing for encoding, placement, durability, and readability, streamlining the compliance process.
• Cross-retailer compatibility: ARC-certified labels work across multiple retailer programs, simplifying operations for suppliers who serve various partners.
• Enhanced performance: From challenging materials to complex supply chains, ARC certification ensures labels perform consistently.

Why label converters are essential to RFID success

The Walmart RFID initiative places label converters in a pivotal role. Almost every product requires a prime RFID label or a companion label integrated into packaging. Brands will turn to converters for expertise in managing this transition.

Label converters have the opportunity to not only produce compliant labels but also optimize label performance based on specific product needs. For instance, RFID tags for electronics or health and beauty products may require tailored solutions to ensure compatibility with materials like metal or liquids, which can affect signal strengths.

Converters who specialize in RFID solutions can set themselves apart from competitors by offering customizable, high-performance labels that solve complex challenges.  

How converters can get started

Converters looking to excel in Walmart’s RFID initiative can benefit significantly from partnering with Avery Dennison. As one of seven ARC-approved global RFID inlay suppliers, Avery Dennison provides unmatched expertise and support to enable a smooth transition into the world of RFID-enabled labels.

To learn more about leveraging RFID for your labeling business, contact Avery Dennison today. Together, we can unlock new possibilities in intelligent labeling.

Click here to find out more.