Radar, an inventory management startup backed by American Eagle Outfitters CEO Jay Schottenstein, has reached a valuation of more than $1 billion following its latest funding round, CNBC reported on Tuesday (May 19).
The company raised $170 million in Series B financing co-led by Gideon Strategic Partners and Nimble Partners, with participation from Align Ventures.
Founded in 2013 by Spencer Hewett, a former Peter Thiel fellowship recipient, Radar utilizes ceiling-mounted hardware to track radio-frequency identification (RFID) tags with a claimed 99% accuracy. While the firm originally intended to develop instant-checkout technology, it pivoted to focus on the persistent retail challenge of inventory visibility.
The technology is currently deployed in more than 1,400 stores, including locations for Gap Inc.’s Old Navy and American Eagle. Schottenstein, whose company was the first to implement the system, told CNBC that digitizing inventory in real-time has allowed his teams to prioritize customer experience over manual tracking.
The platform addresses a critical pain point in omnichannel retail: the discrepancy between online “buy online, pick up in store” services saw order cancellation rates drop from 25% to 3% after adopting the technology. By providing store associates with the exact location of items, the system aims to eliminate the “lost sale” that occurs when specific sizes or colors cannot be located.
Furthermore, Radar provides a real-time audit of supply chain deliveries to combat inventory loss resulting from theft, damage or administrative errors. According to Hewett, one client saw a 60% reduction in shrink at a pilot location. The system allows managers to immediately flag discrepancies in shipments, such as receiving 80 items when 100 were expected, a task that is often too labor intensive for manual review.
The use of RFID in retail is one of the latest innovation that merchandisers are introducing to their stores.
Guitar Center, for instance, has debuted artificial intelligence (AI)-powered assistants to help customers find what they need.
Rig Advisor is designed to replicate what a human associate can do, PYMNTS reported in April, delivering product guidance on demand. And it’s not just Guitar Center. Retailers across industries are implementing AI directly into the shopping experience, reshaping how customers browse, decide and buy.
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