MACY’S LEAVES NO ITEM BEHIND

Macy’s is supporting a new omnichannel order fulfillment program called “Pick to the Last Unit” (P2LU) with Tyco’s TrueVUE RFID inventory visibility platform.



Macy’s omnichannel strategy is to allow customers to shop anywhere, anytime and anyhow they choose. The retailer realized that brick-and-mortar stores could fulfill single-unit orders, essentially functioning as “warehouses” to utilize the full assortment of owned inventory. With item-level RFID, Macy’s has supported omnichannel operations and been able to reduce $1 billion of inventory from its stores.



Furthering that effort, Macy’s has launched its P2LU omnichannel fulfillment program. P2LU attempts to ensure that the last unit of an item in any store is made available for sale and easily located for order fulfillment.



Using RFID, Macy’s conducted a P2LU pilot project with women’s dresses, which delivered increased store fulfillment sales and reduced markdowns. The retailer is also reducing inventory costs by lowering interim inventory requirements by one-third.