The planned rollout of a radio-frequency ID system to track promotional displays in 5,000 Walgreens stores is raising objections from privacy groups that worry about future consumer tracking, AdAge reports.
The system, created by Goliath Solutions, uses RFID to track when, how long and where displays are placed in stores, allowing marketers to track results of promotions by store or demographic cluster. Manufacturers can also time local, regional or national advertising according to when displays are in place and send representatives to stores that haven’t put up displays.
Even though the Walgreens installation would not involve placing chips on packages used by consumers, privacy group Consumers Against Supermarket Privacy Invasion and Numbering cites two patents and two pending applications by Goliath that envision extending the system to track individual consumers in stores and target ads to them at home by using RFID chips embedded in loyalty cards.
“I couldn’t speculate on the future and I could never say never about anything,” a Walgreens spokesman said. “All we’re doing at this point is looking at using this technology to get better performance out of our displays in the stores, and that’s it.” Walgreens doesn’t have loyalty cards, he said.
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Below, fiscal results from the discount retail giants:
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