Customers are becoming increasingly demanding in terms of responsiveness, level of service, quality of products and cost. Firms can attain these goals simultaneously, only if they invest in new technologies. A new technology that has received considerable attention from academics and practitioners, especially among retailers, is the Radio Frequency Identification (RFID), because of its large scope of application, advantages and potentialities. This paper aims to present the potential, requirements, and advantages and disadvantages associated with the utilization of RFID both, in general and for the retailers in particular. It also intends to highlight the benefits associated with the utilization of RFID technology in the logistics field. It tries to emphasize the importance of this technology to enable firms to perform the logistics activities faster, with better quality, at a lower cost and with more responsiveness, especially in the last echelon of the distribution chain, the retailer. To illustrate this, a case study of the introduction of the RFID technology by a Portuguese fashion retailer is presented.