During the Annual General Meeting, held on 15 July 2014, Inditex's Chairman and CEO unveiled the radio frequency identification technology (RFID) implementation project. This technology allows individual tracking of garments, from the logistics platforms until their ultimate sale.
This innovative technology allows the individual identification of each garment by means of radio frequency waves. The garment's ID is recorded on a chip inside the security alarm, which makes distribution more efficient and in-store garment management more accurate, improving overall customer service standards.
The RFID system codes each garment in the logistics centres, which means that when shipments reach the stores twice weekly, the system immediately pinpoints which sizes and models need replenishing. By the same token, the system drives enhanced customer service by enabling, with the help of cutting-edge technology, immediate identification of size availability either in-store, in nearby stores or online.
The project is already in operation in over 700 Zara stores and is in the process being rolled out on a more widespread basis. All of Zara's logistics centres already have the technology fully operational and the Group expects to have it installed in all Zara stores by 2016 with plans for gradual rollout across the rest of its chains thereafter. For Pablo Isla, implementation of this next-generation technology is "one of the most significant changes in how the Group's stores operate".