Motorola - American Apparel
Improve business processes and reduce lost sales attributable to out-of-stocks American Apparel is a manufacturer, distributor, and retailer of branded fashion apparel based in Los Angeles. The company started in 1989 as a wholesaler of t-shirts and opened its first retail outlets in 2003. American Apparel currently operates over 285 retail stores in 20 countries and is still growing.
The right location and the right partners to test the potential of item-level RFID American Apparel gave careful consideration to its choice of store for the pilot. They were looking for a store that had average sales and a dedicated staff that would embrace the technology and a new process for inventory management. In addition, they wanted a location with good traffic flow that was centrally located to other area stores, to facilitate a regional roll-out if the single store pilot proved successful. Ultimately, the store chosen was the Columbian University area store in New York City, which also serves as the returns center for all the American Apparel New York City stores.
Proven effectiveness American Apparel quickly saw that its new pilot RFID system contributed to a well-stocked store, increased sales, and allowed immediate and accurate responses to consumers’ requested design, size and color of in-store merchandise. The technology also allowed the retailer to better determine real-time buying behaviors and adjust inventory accordingly, making items easier for customers to find and for employees to replenish. In fact, the new system has reduced the number of "missing” items (that is, an item color or size that is not on the floor) from an average of 80 missing items on the floor at any time to fewer than eight – which were subsequentially found misplaced on the selling floor.