Ubiquitous computing (also called pervasive computing) encourages the seamless integration of technology in the environment, allowing users to interact with it naturally. Ubiquitous retailing is an application of ubiquitous computing. The pervasive nature of the interaction allows users to radically alter the mechanisms of ordering goods. As everything could potentially be transformed into a point of sale, the consumer would constantly be surrounded by spending opportunities that are accessible without having to visit a website, login, add the products to the shopping cart and then checkout. Established relationships, coupled with semi-automated ordering mechanisms, could significantly alter the shopping experience. The convenience factor could easily be further strengthened, if one allows the environment itself to assume some control of the shopping. For example, if a light bulb is burnt out, then the chandelier could order one by itself. To some extent, we are already looking at this phenomenon: mobile commerce and location-based services. In scenarios like the above, the customer is still largely in charge of the transaction and purchasing decision. In the future, this may change, as pervasive computing gradually finds its way in the environment and a wider-range of purchasing opportunities become a reality. At that point, rule-based purchasing may become an attractive proposition for consumers, who could program the points-of-sale to automate purchasing based on certain conditions (e.g. the chandelier would order light bulbs only when a third of them were burnt out). Grocery shopping is ideal for this kind of purchasing. Most items can be restocked with minimum associate risk: not much is lost if you end up ordering a bit more milk and bread than you needed. Such automated purchasing, based on rules, will have a number of significant implications for both the consumers and the retailers. Goods may be classified as commodity items whose purchasing could be delegated to the technology and items that the consumer feels require personal attention when purchasing. For the first type of items impulse buying may suddenly become a thing of the past, as the consumer does not need to worry about having enough milk in the fridge again. Which products end up in these two categories will depend on the consumer and his special needs and requirements. This will probably result in consumers being positioned between the two emerging extremes: those who would not mind automating as many of their purchases as possible and those who would prefer the 'traditional shopping' and engage in every step. From the retailers' point of view, ubiquitous retailing may spark a chain reaction of changes, as it will not get to engage with the customer in the same way. Data mining techniques could potentially generate very detailed customer profiles. In order to take advantage of these, retailers would need to rethink their customer relationship management strategies and how they market their products to the consumer. Whether convenience justifies such extreme profiling, at least with today's standards, and whether balance between privacy and ease of purchasing can be achieved, is something that is yet to be seen. Ubiquitous retailing, by definition, will aim to seamlessly integrate the point of sale with the environment; ease of use will have to be an intrinsic characteristic of the new systems. The specialization of point of sales to perform well-defined purchasing would also allow for speedier transactions, enhancing the convenience factor. In fact, transacting models themselves may be significantly affected. Instead of performing one-off transactions for many items, goods may be purchased one at a time or placed on temporary shopping carts, either on the consumer's or the retailer's side. An example of such an approach can be seen in the 'Intelligent shelves' case (Metro, 2006), which guarantees that customers no longer face empty shelves. The products placed in the system are equipped with Smart Chips that contain information relevant to the product itself or its logistic processes. A RFID reader integrated into the shelf automatically recognizes when an item is removed by reading the product information. Should stocks diminish, the system can take the necessary action. The following discusses Metro Group's RFID-based Intelligent Store Project. METRO GROUP METRO GROUP is one of the largest and most international retailing companies. In 2007, the Group reached sales of around 64 billion. The company has a headcount of some 280,000 employees and operates over 2,200 stores in 31 countries. The METRO GROUP's performance is based on the strength of its sales divisions which operate independently in their respective market segment: Metro/Makro Cash & Carry - the international leader in self-service wholesale, Real Hypermarkets, Media Market, and Saturn - European market leader in consumer electronics retailing, and Galeria Kaufhof department stores. Intelligent Applications to Inform and Advise Since 2004, the METRO GROUP has used RFID throughout its entire supply chain and in its warehouse management. Within the context of its Future Store Initiative, the retailing company has been testing innovative applications for its front stores for years. Thanks to the pilot project at Galeria Kaufhof in Essen, customers can now enjoy the extensive benefits and possibilities of RFID technology. In the Gardeur Shop at the Essen outlet, Smart Dressing Rooms, Shelves and Mirrors provide a totally new shopping experience: for example, the Smart Dressing Room recognizes a garment via RFID and, on an integrated display, provides the customer with useful information such as price, material, and care instructions. Another innovative feature informs customers of complementary products. For example, when a shopper tries on a pair of pants, a matching shirt will appear on the screen. The Smart Dressing Room also offers information on available sizes and colors. The customer receives comprehensive advice without ever having to leave the dressing room. Optimizing Availability of Goods But this is just the beginning of the benefits RFID technology offers the customer: with help of handheld readers - Mobile Assistants - employees can very easily determine where in the front store a specific product is located. The technology also helps to optimize the availability of goods: at the press of a button, employees can check how many products are in stock, and reorder products in good time. "By using RFID, we want to boost the availability of every product for our customers," says Dr. Uwe Schlick, Member of the Management Board of Kaufhof Warenhaus AG. RFID on Every Product To ensure that customers benefit from the many possibilities that the technology offers, METRO GROUP has fitted every single product in the men's fashion department at Galeria Kaufhof in Essen - that is, around 30,000 products - with RFID. Each product has an additional label bearing an RFID transponder, on which the product's Electronic Product Code (EPC) is stored. Using special software, this number allows authorized users to access information in a database including, for example, details on the manufacturer, size, and price. No personal data are collected via RFID. If the customer desires, the Smart Chip will be removed by employees once the product has been paid for. RFID readers, which are integrated into the various innovative applications, are also installed at all doors between storage areas and the front store, as well as at the cash register. They can identify a product's EPC quickly and conveniently without physical or optical contact. Use of RFID Technology Raises Efficiency in Logistics With RFID tags on each shipping pallet, deliveries can be checked for completeness within seconds. RFID readers at the goods-in gates can automatically recognize and identify incoming pallets. With the readers, the system checks whether the deliveries match the order prior to registering them in the inventory management system. Also, deliveries from the warehouses to the stores of the METRO GROUP are monitored with RFID. The improved processes help prevent incorrect deliveries and increase the accuracy of the inventory information. Furthermore, the exchange of data with the vendor is facilitated. More than 180 suppliers are already participating in the project and discussions are under way with all other suppliers. METRO GROUP and its partners under the Future Store Initiative offer support to all interested parties. Three tailor-made "starter kits" facilitate the start into the future of retailing for suppliers. Also at the international level, METRO GROUP is extending the deployment of the radio frequency technology. Starting from late 2007, around 100 suppliers from China and Vietnam will participate in the RFID pilot project "Tag it Easy" and tag their export packages with RFID transponders. This way, distinct efficiency gains can also be achieved in the supply chain between Asia and Europe. Close Cooperation with Partners of the Future Store Initiative METRO GROUP cooperates with its partners under the METRO GROUP Future Store Initiative to create the infrastructure required for the practical application of this technology in Germany (see Figure 1). IBM supplies the software for the RFID rollout. IBM and Checkpoint take on the system integration of the portals with readers from Intermec Technologies or Sirit. \"For us it was important to be able to rely on competent general contractors for the realization of our concept\" summarized Dr. Gerd Wolfram, Managing Director of MGI METRO GROUP Information Technology, \"The service offered by IBM and Checkpoint was one of the key factors for the smooth operational rollout of the system\". Figure 1. Future Store Initiative at METRO GROUP Source: http://www.future-store.org/fsi-internet/html/de/1318/index.html Mobile Shopping Passes its First Test The innovative technologies used at the Future Store were also well received. Around two-thirds of customers who checked out one of the test devices said they would again use the Mobile Shopping Assistant (MSA) - an application for mobile phones that supports customers while shopping - and recommend it to their families and friends. The result was even better in the group of the 100 test users who have been testing the MSA since June 2008: Three-quarters of them rated this application \"very good\" or \"good.\" \"The experience gained by the test-users help us to further optimize the MSA,\" explained Dr. Wolfram. \"In a next step, we plan to make mobile shopping even more user-friendly and offer additional functionalities.\" The next feature to be tested will be Pay by Wireless with mobile phones. For this purpose, METRO GROUP use so-called Near Field Communication (NFC), a technology for the shortrange transmission of data between devices. A first long-term test with selected consumers is being planned. Dr. Wolfram: \"With Pay by Wireless, we offer our customers added convenience in mobile shopping.\