Zara’s New Tagging System Expedites Replenishment

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July 21, 2014

Zara introduced a new tagging system that will speed up the process of getting apparel into stores and out to shoppers.

Inditex, the parent group that owns brands such as Zara and Massimo Dutti and the world's largest clothing retailer, is now implementing a radio frequency identification (RFID) system that allows it to track products from the factory to the point of sale, reported the Telegraph. The goal is to improve inventory management by instantly indicating items that need to be reordered.

The platform can record and reorder apparel for stores that sell out of particular sizes more quickly than others, or track high-performance items. Therefore, shoppers will not have to store-hop to find coveted items.

The technology has already been rolled out in 700 of Inditex's 6,300 stores. Chairman and CEO Pablo Isla said the new tags will be rolled out in 500 more stores a year, according to Reuters.

Inditex is a pioneer in fast fashion, making designer looks available at affordable prices within weeks of being seen on the runway. Other apparel retailers have had to reposition brands in order to try and compete. For instance, Abercrombie & Fitch, which has been struggling with sales for years, recently repositioned its Hollister brand as "fast fashion."

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