Tilly's Partners with Nedap to Elevate Omnichannel Strategy

Rhea-AI Summary

Tilly's (TLYS) has partnered with Nedap to implement RFID technology across all its stores nationwide starting Q2 2025. The partnership centers on deploying Nedap's iD Cloud solution, aimed at enhancing inventory accuracy and optimizing product availability. The implementation will streamline item tracking from distribution centers to store shelves, supporting Tilly's omnichannel strategy including same-day delivery and in-store pickup services.

The initiative focuses on integrating inventory data across Tilly's three primary revenue streams: physical stores, e-commerce platform, and mobile app. The technology will provide real-time tracking of items, reduce stockouts, and enable data-driven decisions for loss prevention. Tilly's CIO Erik Quade highlighted this partnership as a crucial component of their 2025 strategy to increase market share and drive sustainable growth.

Positive

• Implementation of RFID technology to enhance inventory accuracy and visibility
• Integration across three revenue streams (stores, e-commerce, mobile app)
• Potential reduction in stockouts and improved operational efficiency
• Enhanced capability for same-day delivery and in-store pickup services
• Improved tools for loss prevention and year-end inventory counts

Negative

• None.

Insights

Retail Technology Specialist

Tilly's implementation of Nedap's RFID technology aims to enhance inventory accuracy and omnichannel capabilities, potentially improving operational efficiency and sales performance.

This partnership represents a strategic investment in Tilly's operational infrastructure, focused on addressing critical retail challenges. By implementing Nedap's iD Cloud RFID solution across all stores, Tilly's is tackling the fundamental retail issue of inventory accuracy, which typically hovers around 70-75% in traditional retail environments but can reach 98%+ with RFID technology.

The timing of this rollout in Q2 2025 aligns with the retail industry's accelerating adoption of RFID for omnichannel capabilities. By enhancing inventory visibility from distribution centers to store shelves, Tilly's can potentially reduce stockouts (which typically cost retailers 4-8% in lost sales) while optimizing working capital by maintaining leaner, more accurate inventory levels.

The implementation serves three critical business objectives: increasing inventory accuracy, ensuring on-shelf availability, and integrating inventory data across physical stores, e-commerce, and mobile platforms. This unified inventory view is particularly valuable for Tilly's same-day delivery and in-store pickup programs, which depend on real-time inventory accuracy to function effectively.

Beyond immediate operational improvements, the platform positions Tilly's to leverage RFID for more efficient year-end inventory counts and data-driven loss prevention. For specialty retailers like Tilly's operating in the competitive apparel and footwear sector, reducing shrinkage (typically 1-2% of revenue) through better inventory controls could directly impact profitability.

Tilly's is revolutionizing all stores with Nedap's iD Cloud, unlocking the power of RFID for seamless operations nationwide.

GROENLO, The Netherlands, May 13, 2025 /PRNewswire/ -- Nedap (AMS:NEDAP), the global leader in RFID solutions, is pleased to announce a new partnership with Tilly's, a leading specialty retailer of casual apparel, footwear, and accessories. Starting in Q2 2025, Tilly's will deploy Nedap's iD Cloud solution across all its stores nationwide, aiming to enhance inventory accuracy, optimize product availability, and streamline operational efficiencies.

Tilly's has partnered with Nedap to harness RFID technology, enhancing inventory visibility and accuracy across its retail operations. By leveraging Nedap's iD Cloud, Tilly's will streamline item tracking from the distribution center to store shelves, ensuring seamless restocking and delivering an unmatched shopping experience for customers.

Behind the Decision
Tilly's chose Nedap's iD Cloud due to its powerful EPCIS repository capabilities, allowing for a fully integrated RFID approach. With Nedap's proven expertise in the RFID industry and a leading market position, Tilly's is confident in the solution's ability to address its inventory management needs in a complex, multi-brand retail environment. Leveraging iD Cloud's platform will empower Tilly's to achieve an impressive level of operational control, visibility, and scalability across its entire supply chain.

Erik Quade, Chief Information Officer of Tilly's announced the new partnership: "At Tilly's, our mission is to elevate the shopping experience and stay ahead in a competitive retail landscape. Partnering with Nedap and implementing the iD Cloud platform is a pivotal step in our 2025 strategy to increase market share. By enhancing inventory accuracy and leveraging real-time data insights, iD Cloud empowers us to optimize operations, streamline the customer journey, and deliver a seamless experience. All these factors support Tilly's in maintaining a competitive edge. This partnership is more than a technology investment—it's about building the foundation to drive sustainable growth for the longer term."

Key Objectives
Tilly's robust omnichannel strategy is elevated with the integration of iD Cloud. As a leader in offering same-day delivery and in-store pickup, ensuring precise inventory accuracy is essential to driving the continued success of these programs.

Tilly's main objectives for this RFID roll-out are to increase inventory accuracy and ensure on-shelf product availability across all stores, while integrating inventory data across their three primary revenue streams: physical stores, e-commerce platform, and mobile app. The iD Cloud solution is uniquely suited to meet these goals by providing exact, real-time tracking of each item and reducing stockouts. This three-pronged approach enables Tilly's to optimize inventory management across all channels, ensuring a seamless shopping experience for their highly digital-savvy customers. By unifying inventory management across physical and digital touchpoints, Tilly's can meet their customers where they are – leading to higher satisfaction and loyalty.

Looking Ahead
In addition to improving inventory accuracy and operational efficiency, this partnership will place Tilly's in a position to leverage RFID for year-end inventory counts and data-driven loss prevention. With Nedap's platform, Tilly's gains the tools to make data-driven decisions, reduce shrinkage, and foster long-term growth.

Ailen Bilharz, Vice President of iD Cloud North America at Nedap: "This collaboration, spearheaded by Madalynn Lauria, has been years in the making, and we're thrilled to see it come to life. Tilly's has always been at the forefront of innovation in digital retail, and their dedication to enhancing the shopping experience is evident. With the insights from iD Cloud, they are well-positioned to drive meaningful impact across their stores and teams for years to come."

About Nedap iD Cloud
Nedap is the global leader in RFID-based retail solutions, with over 14,000 stores contracted to its iD Cloud platform. Nedap helps retailers achieve perfect inventory visibility with zero waste and no losses. iD Cloud simplifies multi-store retail and supply chain management using RFID and gives retailers real-time item-level insights into their stock levels and the exact location of each item. Using these real-time insights, retailers can be more agile, offer customers a better omnichannel shopping experience, and increase sales.

About Nedap N.V.
Nedap is a leader in Digital Twin Technology, bridging the physical and digital worlds in Healthcare, Livestock, Retail and Security. Through our Technology for Life philosophy, we create sustainable, forward-thinking solutions that help people and organizations succeed in an ever-changing world.

Nedap has a workforce of over 1,000 employees and operates on a global scale. The company was founded in 1929 and has been listed on Euronext Amsterdam since 1947. Its headquarters is located in Groenlo, the Netherlands.

About Tilly's
Tillys (NYSE: TLYS) is a leading specialty retailer of casual apparel, footwear, accessories, and hardgoods for young men, young women, boys, and girls. Founded in 1982 and headquartered in Irvine, California, Tillys operates over 240 stores across the United States and an e-commerce platform at www.tillys.com. Tilly's is known for curating a dynamic assortment of global and emerging lifestyle brands, delivering a seamless blend of fashion, music, art, and action sports culture. With a strong focus on customer experience and a loyal community of trend-conscious shoppers, Tillys continues to redefine youth retail through innovation and authenticity.

For more information,please contact:
Ilse Protsman
Marketing Communication Manager
Nedap

+31 6 55 41 51 67
www.linkedin.com/in/ilse-protsman/
ilse.protsman@nedap.com
www.nedap-retail.com

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SOURCE Nedap Inc.

FAQ

What is the purpose of Tilly's (TLYS) partnership with Nedap in 2025?

Tilly's is partnering with Nedap to implement RFID technology through the iD Cloud solution across all stores nationwide, aiming to enhance inventory accuracy, optimize product availability, and streamline operational efficiencies.

When will Tilly's (TLYS) implement Nedap's iD Cloud solution?

Tilly's will begin deploying Nedap's iD Cloud solution across all its stores nationwide starting in Q2 2025.

How will the Nedap partnership affect Tilly's omnichannel strategy?

The partnership will integrate inventory data across Tilly's physical stores, e-commerce platform, and mobile app, enabling real-time tracking, reducing stockouts, and improving same-day delivery and in-store pickup services.

What are the main objectives of Tilly's RFID implementation?

The main objectives are to increase inventory accuracy, ensure on-shelf product availability across stores, integrate inventory data across all sales channels, and improve loss prevention capabilities.