RETAIL ITEM INTELLIGENCE

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1 RETAIL ITEM INTELLIGENCE DRIVE SALES & IMPROVE STORE OPERATIONS Automate processes and streamline operations with RAIN RFID STYLE: 212 COLOR: WHITE SIZE: S

2 ITEM INTELLIGENCE Brings Visibility and Insight into Store Operations Leading retailers are implementing Item Intelligence as a foundational technology that increases sales, provides context for engaging in-store customer experiences and captures data for analytics. Item Intelligence delivers on the promise of the Internet of Things by connecting billions of retail items to the Internet. By adding RFID tags to individual items and deploying a mix of always-on and mobile Item Intelligence gateways, retailers can deliver seamless shopping experiences and run reliableomni-channel operations. RFID item tagging significantly improves inventory visibility, in some instances, by more than 25 percentage points. Retailers use barcodes today because they must use data to make business decisions, and the data that barcodes provide, though inadequate, is all they ve got. Barcode-based store-floor inventory accuracy is generally less than 70% accurate. RAIN RFID significantly improves inventory visibility, in some instances, by more than 25 percentage points. With Item Intelligence, retailers can increase store sales by ensuring availability of products in demand, and increase online sales by making in-store inventory available for sale online. Overhead, hands-free gateways quickly read all items on a sales floor, giving both sales staff and customers insight into what s in-stock, and where on the sales floor it s located. According to Price Waterhouse Cooper, retailers will have to fully embrace the use of digital technology, including mining consumer data to better understand consumer behavior, fully employing social media, and leveraging two-way communication channels with the workforce, whether in-field, in-store, or during travel. Item Intelligence enables this. Business Intelligence Retailers Need Better Visibility, Insight and Decisions Asset Tracking Analytics Replenishment Personal Experience Inventory Confidence Traffic Flow

3 A TYPICAL RETAIL DEPLOYMENT Delighting customers while collecting useful data As retailers investigate innovative ways to compete with online retailers, many find they must leverage their assets physical storefronts and distributed inventory to improve their store and online sales, and reduce mark-downs. Many retailers begin by adding RAIN RFID tags to select categories, such as apparel and shoes, and use RFID readers to perform inventory counts of those items daily, weekly or monthly. This increased inventory visibility improves on-shelf availability of products and often leads to benefits including: $ Improved Omni-Channel Fulfillment Due To Inventory Confidence Increased Sales Reduced Backstock Once inventory is optimized, retailers can begin to leverage RFID technology when developing in-store shopping experiences, collecting Item Intelligence on customer interactions with products to better understand how customers shop and buy. Types of experiences can include: Smart Fitting Rooms Automated Point Of Sale Item Locationing

4 RFID-BASED ITEM INTELLIGENCE SOLUTIONS Create engaging shopping experiences and valuable data streams Omni-channel Fulfillment / Always-On Inventory Item Intelligence gateways can take inventory anytime, without disturbing shoppers, to quickly locate items, even those left in a fitting room or another department. With confidence in system-wide inventory, retailers can keep stores well stocked and maximize the online assortment while decreasing working capital and increasing turnover. Omni-channel retailers can leverage Item Intelligence to convert their stores and in-store inventory into strategic assets by transforming them into virtual fulfillment centers housing distributed inventory. Loss Identification and Prevention By providing accurate, real-time location of all items within a store, an Item Intelligence system can enable loss-prevention systems that deter theft by sounding alarms. Because systems using Item Intelligence can also provide the identity of a stolen item (which legacy systems cannot), the store s inventory management system can be updated to accurately reflect the quantity of items on hand. Loss identification is important because otherwise when theft occurs, retailers lose the value of the stolen item plus the value of lost sales due to subsequent out-ofstock conditions indirectly caused by the theft. Enhanced Shopping Experiences RFID provides opportunities to communicate relevant information as the shopper removes an item from a shelf or places it on a rack. A tagged item can activate a display that shows product features and benefits, size runs, and pricing plus other marketing content like videos, webpages, or even related items the shopper might like. Retailers can increase customer satisfaction by always suggesting in-stock items and then helping the shopper locate those items. By delivering an Item Intelligence powered experience, the retailer can gather new forms of data about shopping to further optimize the experience and drive more sales. Automated Checkout An Item Intelligence system can enable speedy and accurate identification of items at the point of sale, benefiting retailers by reducing time, personnel and space at checkout. Shoppers or sales staff simply place a stack of goods onto a checkout station. Tags are read instantly and the customer s order is totaled. As the sale completes, the tags are recorded as purchased and removed from the store s inventory, enabling the customer to leave the store without triggering the EAS system. AUTOMATED CHECKOUT ENHANCED SHOPPING EXPERIENCE LOSS IDENTIFICATION AND PREVENTION OMNI-CHANNEL FULFILLMENT / ALWAYS- ON INVENTORY

5 RFID BASICS Item Intelligence implementations begin with item-level tagging and the incorporation of handheld and/or fixed RFID readers. RAIN RFID tags contain a unique serial number that identifies the item, do not require line-of-sight reading, can be read simultaneously, and are updatable in the field. Handheld Reader Tag Chip RFID-Enabled Tagged Item Enterprise Management And Reader Control Tagging Items Options for tagging include embedding an RFID inlay into a traditional variable data printed hangtag, using dedicated RFID tags, and using reusable, rugged RFID tags. The type of tag depends on the item being tagged and where and how readers will read it. Choosing Readers Most retailers begin their move to RFID using handheld readers, which can improve inventory accuracy to greater than 90% when performing inventory counts every week or two. Retailers can further improve inventory accuracy and automation by using ceiling-mounted reader systems or gateways. Gateways incorporate a reader and an array of antennas, require no human operator, are always on, and provide very broad read coverage. Gateways can also deliver item location accuracy to within a few feet.

6 RETAIL SPOTLIGHT American Apparel American Apparel uses an RFID-based Item Intelligence system to assist customers and staff in locating merchandise, prevent loss of items, gather business analytics, and enhance security. Business Benefits Increased store sales by up to 14% Gained 100% store inventory visibility Enabled omni-channel Decreased store shrinkage over 55% Increased employee bandwidth memove Brazilian retailer Valdac Global Brands introduced RFIDbased Item Intelligence into their memove stores to create a unique shopping experience for customers and optimize store operations. The RFID system tracks tagged products from the point of manufacture to the distribution center, and in the retail stores from the shelf to point of sale (POS). Business Benefits 50% drop in operating costs 300% faster receiving process Near 100% inventory accuracy Reduced inventory counting time Increased inventory visibility 60% faster check-out times

7 Rebecca Minkhoff Fashion designer Rebecca Minkhoff opened digitally enhanced stores that leverage RFID technology to engage customers. Smart fitting rooms capture item information as a product enters the room. Business Benefits Shows the product image on the interactive mirror Suggests related clothing items and accessories Provides valuable data on what s being tried on or left behind Zara Leading apparel company Inditex SA deployed RFID to approximately 1,000 Zara s stores by the end of Zara is using Item Intelligence to change how they operate their stores. Business Benefits Reduction in inventory team size (from 40 to 10) Improved inventory count times (from 5 hours to 2.5 hours) Real-time inventory updates at time of sale Restocking alerts when items are sold Omni-channel by way of inventory accuracy

8 Ready to discuss how the Impinj Platform can help your business? CONTACT US / Impinj (NASDAQ: PI) wirelessly connects billions of everyday items such as apparel, medical supplies, automobile parts, luggage and food to consumer and business applications such as inventory management, patient safety, asset tracking and item authentication. The Impinj platform uses RAIN RFID to deliver timely information about these items to the digital world, thereby enabling the Internet of Things. Impinj, Inc Impinj, Monza, Item Ingelligence, Speedway, xarray, Indy, ItemSense, ItemEncode are either trademarks or registered trademarks of Impinj, Inc. Please see for full list.