Myer has expanded its use of RFID technology into six stores in Victoria and one in Sydney.
The tags are now used to locate and identify clothing, bed linen and technology products.
It is also in talks with Sheridan and a major apparel label about installing the tags to products sold in all 61 Myer stores.
The department store is one of 70 Australian retailers – others include Kmart, Country Road Group, Target and Cotton On Group – embracing RFID.
It began testing out the benefits of the technology in 2017 to increase inventory accuracy and reduce stock take labour costs.
The pilot launched at its Melbourne City store and began with Apple products.
During the financial year of 2016/17, Myer conducted six cycle stock takes and daily manual counts of Apple inventory in its Melbourne City store, with a significant labour cost associated with these activities.
In addition to this cost, further losses were incurred due to shrinkage caused by a combination of theft and inadequate inventory control.
The RFID implementation resulted in significant improvement to profitability for the Apple category with labour cost savings through reduced stock take times from 2.5 hours per day to 15 minutes and over 80% reduction in shrinkage.
There was also a reduction in cycle count time and associated labour costs by over 80% and 100% fulfilment pick accuracy.
Myer national retail operations manager Gary Stones said the technology has multiple business benefits.
“Standing up a basic RFID proof of concept is relatively easy and low cost.
“Once you can prove business benefits, you have the ability to reinvest savings into further POC's and your RFID journey will be well on its way.
“I encourage all retailers and brand owners to look at what improvements their business can benefit from with the use of RFID technology.”