Abstract
The hype around Radio Frequency Identification (RFID) technology – a revolutionary information-gathering method whereby information in a tag can be read from up to 300 feet away – has caught the attention of many retailers in North America. Retailers such as Wal-Mart and Tesco (in the U.K) have begun piloting the technology: in 2006, Wal-Mart's RFID trial lead to a 16% reduction in product stock-outs (Sullivan, Online). The Canadian retail environment is constantly changing: factors such as the growth in the relative purchasing power of the Canadian dollar, increasing competition from discount rivals and shifting consumer trends provide Hudson's Bay Company (HBC) with new challenges as well as opportunities for growth. In order to deal effectively with constant change, HBC has developed five strategic initiatives through which it hopes to achieve an additional $1.5 billion in incremental sales from existing operations. HBC's overall strategic direction is to provide consumers with a more augmented shopping experience; the implementation of RFID technology can be instrumental in achieving this objective.
