Radio frequency identification in the UK: opportunities and challenges

Radio frequency identification (RFID) is the generic name for technologies that use radio waves to automatically identify individual items that carry such identification tags. Unlike barcodes, which need line of sight sensors, RFID tags do not. As the cost of this new technology falls, the take‐up rate by the retail industry will be significant, revolutionizing retailers’ control of the product supply chains and knowledge about the consumer. The paper argues that the opportunities and challenges for RFID tags for retailers are significant, and reports on a number of trials that have been conducted by retailers in the UK in the management and introduction of this technology. The paper also examines some of the issues facing retailers in terms of the widespread use of RFID tags and the privacy concerns that are linked to data capture and data usage by retailers and third parties.