Faster turning inventory infers more labor costs. For disposable security labels, the principle is the same. It costs between three and five cents to buy a label. The label application process is not quite as time consuming as affixing a plastic tag. In a supermarket, inventory turns over much faster than four times per year.
Some items turn over once per week.
Experienced source taggers, such as Walgreen's and Home Depot, have displaced some label costs and labor costs to suppliers. At that point, they will be applied to packing or built into merchandise as it is manufactured. In the meantime, back in the real world, retailers have a dilemma. One of the obvious choices is to retain the EAS system that is currently in place. If it is a microwave system, there are several issues which must be addressed within the next few years.