Old Navy Partners with RADAR to Elevate the Customer Experience with Plans for Phased Roll Out of its AI-Powered RFID Technology
Rhea-AI Summary
Old Navy, part of Gap Inc. (NYSE: GAP), has announced a multi-year partnership with RADAR to implement AI-powered RFID technology across its nationwide stores. The technology combines RFID, AI, and computer vision to track and locate in-store inventory in real-time with high accuracy.
The initiative aims to empower store associates with real-time inventory information, enabling them to locate items anywhere in the store and enhance customer experience. This partnership is part of Gap Inc.'s strategy to improve operational efficiency and strengthen its platform through new capabilities.
RADAR's platform will provide store teams with ecommerce-level inventory insights, helping optimize operations, manage physical stores with online-like precision, and improve product replenishment. The technology's AI & data-science analytics will assist in making informed inventory decisions, optimizing floor sets, and minimizing issues like shrinkage, stockouts, and overstocks.
Positive
- Implementation of advanced RFID technology for improved inventory management
- Potential reduction in operational costs through better inventory control
- Enhanced ability to minimize shrinkage, stockouts, and overstocks
- Improved efficiency in omnichannel order fulfillment
Negative
- Significant multi-year investment required for nationwide technology rollout
- Implementation and training costs across store fleet
Insights
Old Navy's partnership with RADAR represents a strategic investment in operational efficiency through AI-powered RFID technology that addresses core retail challenges. This multi-year implementation across Old Navy's nationwide store fleet aims to solve inventory accuracy issues that have long plagued physical retail.
The technology directly targets three critical operational pain points: inventory visibility, associate productivity, and omnichannel fulfillment. By enabling precise real-time tracking of merchandise throughout stores, Old Navy stands to gain significant operational improvements in stockouts, shrinkage, and sales floor replenishment - problems that typically cost retailers 3-8% in lost sales.
While RFID technology isn't novel in retail, the integration of AI and computer vision creates a more comprehensive solution than traditional RFID implementations. The phased rollout approach demonstrates prudent capital deployment, allowing for operational adjustments before full-scale implementation.
What's particularly valuable is the potential for data-driven merchandising decisions. The platform's analytics capabilities could transform store layout optimization from art to science by identifying which product placements drive conversion, similar to how e-commerce has leveraged data for years.
However, successful implementation hinges on frontline adoption and integration with existing systems. The return timeline is typically extended - retailers generally see measurable ROI from RFID within 18-24 months, primarily through inventory accuracy improvements and labor efficiency. This represents a foundational operational improvement rather than a direct revenue driver.
RADAR's technology platform merges three distinct technologies - RFID for item-level tracking, AI for data processing, and computer vision for spatial awareness - creating an integrated system that transforms physical store operations into a data-rich environment. This combination enables far more sophisticated applications than standard RFID implementations.
What's technically significant is that this system creates continuous real-time inventory visibility throughout stores - something previously impossible in physical retail environments. Traditional inventory systems provide periodic snapshots, but RADAR's "always-on" approach enables dynamic product tracking that mirrors e-commerce capabilities.
The implementation architecture appears designed for both short and long-term value creation. Initially, it addresses immediate operational needs (inventory location, associate efficiency), while establishing the foundation for more advanced applications like automated merchandising optimization through the AI analytics layer.
Gap Inc.'s approach of piloting before committing to fleet-wide deployment demonstrates technological diligence. The phased rollout allows for addressing integration challenges with existing systems and refining the implementation playbook before scaling.
From a data architecture perspective, the system will generate valuable product movement information that Old Navy previously couldn't capture - essentially creating a physical analytics platform comparable to e-commerce tracking. This bridges a significant gap in omnichannel retail by providing comparable visibility across digital and physical environments.
While implementation complexity shouldn't be underestimated, the technology addresses fundamental retail execution challenges that have persisted for decades.
New Technology Enables Store Associates to Track and Locate Inventory with a High Level of
Accuracy to Drive a Seamless and Intelligent Shopping Experience
Old Navy's multi-year plans include a phased roll out of RADAR's AI-powered RFID technology across its nationwide store fleet to help empower the brand's store associates with real-time inventory information to locate items anywhere in the store and deliver an improved customer experience.
The move is part of Old Navy parent company, Gap Inc.'s ongoing commitment to continuous improvement as it looks to unlock value over time through new capabilities that strengthen its operating rigor and scaled platform.
"We're excited to partner with RADAR, which offers a sophisticated platform and analytics that will give our teams greater real-time inventory visibility to provide an even better in-store shopping experience," said Haio Barbeito, Old Navy President & CEO. "Building on the rigor and discipline that is now core to how we operate, this new technology can place power in the hands of our frontline teams to better serve our customers – an important factor in our long-term strategy to make Old Navy the most loved apparel brand in
"In 2025, we are focused on innovating as we pave the way for momentum in the years ahead. This partnership brings proven capabilities that can generate value over time as we take a strategic, multi-year approach to merging technology and retail to deliver a human-centered, digitally led shopping experience," added Sven Gerjets, Gap Inc. Chief Technology Officer. "With Radar's always-on RFID technology, we will look to transform our stores into truly connected spaces, starting with Old Navy. Continuous product tracking can help us optimize inventory replenishment, improve customer and team member experiences, and give us more real-time insights that can support product design and innovation."
As retailers and brands look to operate more efficiently, being able to track and locate every item in every store is critical. RADAR's RFID & AI platform enables leading brands like Old Navy to precisely manage inventory and give store associates the real-time information they need to instantly find products—no matter where they are on the sales floor or in the backroom. The solution empowers employees to not only serve their in-store customers better but also replenish products on the sales floor and fulfill omnichannel orders being picked up in-store more quickly and easily.
"Old Navy is one of the most iconic American brands and we could not be prouder to officially launch this partnership following pilots across select stores to ensure that Old Navy brand fans are even better served," said Spencer Hewett, Founder and CEO of RADAR. "We will provide store teams with ecommerce-level inventory and product insights, enabling them to manage physical stores with the same precision as their online operations. This will help them optimize operations and ensure customers find what they want, when and where they need it."
RADAR's AI & data-science analytics will also help inform inventory decisions, so companies can stock the right products in the right locations at the right times while minimizing shrinkage, stockouts and overstocks. Hewett continues, "RADAR's platform enables granular measurement of product movement down to the shelf which enables retailers to optimize their floor sets and item locations for more effective sell-through. This is something that has been happening for decades in eCommerce and RADAR is excited to finally bring the same capabilities to physical stores, with Old Navy at the forefront."
About RADAR
RADAR's technology currently powers inventory optimization in nearly 600 stores nationwide and in
RADAR offers a proprietary hardware and software AI-platform that uses RFID and computer vision to turn physical stores into websites. RADAR for the first time enables retailers to measure everything that happens inside their stores including what their inventory level is down to the second. RADAR demystifies what is happening inside retail stores all while eliminating the consumer pain point of the item you want being out of stock, or hearing "I think we might have it, let me go check in the back". Headquartered in
For more information, visit goradar.com.
About Gap Inc.
Gap Inc., a house of iconic brands, is the largest specialty apparel company in America. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories, and lifestyle products for men, women and children. Since 1969, Gap Inc. has created products and experiences that shape culture, while doing right by employees, communities and the planet. Gap Inc. products are available worldwide through company-operated stores, franchise stores, and e-commerce sites. Fiscal year 2024 net sales were
About Old Navy
Old Navy is a global apparel and accessories brand that makes current American essentials accessible to every family. Originated in 1994, the brand invites customers to come play with style through on-trend, playfully optimistic, affordable and high-quality products. A division of
MEDIA CONTACTS
For RADAR:
Michael McMullan / Felicia Kane
Berns Communications Group
mmcmullan@bcg-pr.com / fkane@bcg-pr.com
For Gap:
press@gap.com
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SOURCE Gap Inc.
FAQ
What is the purpose of Old Navy's partnership with RADAR's RFID technology?
How will RADAR's technology benefit Old Navy's store operations?
What specific capabilities does RADAR's platform offer to Old Navy stores?
How does this technology investment align with Gap Inc's (GAP) broader strategy?
