Hrvatski
In fashion retail, inventory status directly affects size availability, delivery speed, and store efficiency. That is why H&M is among the retail chains that recognized early on that manual counting and barcodes were no longer enough, and that continuous real-time visibility of goods was needed. RFID (Radio Frequency Identification) makes it possible for each product to receive a tag, while readers automatically collect data about its presence and movement. In practice, this means faster and more frequent inventory counts, with accuracy of up to 99%, compared to the typical 65–75% seen in traditional processes.
Why 99% Accuracy Matters
Even a small difference in inventory accuracy in a store with thousands of items can mean hundreds of incorrect records. The system may show that a product is available when it is not physically on site. RFID reduces this problem because it does not require individual scanning of each item, but instead enables automatic and repeated reads. According to McKinsey, RFID in retail:
- improves inventory accuracy
- increases product availability
- reduces labor hours related to inventory counting
(mckinsey.com)
How H&M Started with RFID
Materials and presentations mention RFID proof-of-concept activities at H&M as early as around 2014. Such implementations are usually rolled out gradually: from pilot stores – to a wider network of locations. It is important to emphasize that RFID is not just a device, but a complete system that includes tags, readers, integration, and processes — as part of an RFID solution.
Overhead RFID Tracking and Real-Time Inventory
Overhead RFID tracking devices are key to near real-time inventory. These are fixed readers and antennas installed above the sales floor or at transitions between zones, often as part of an RFID ProInventory – inventory management system. This approach enables:
- automatic tracking of goods by zone
- faster detection of discrepancies
- more accurate data on item availability
- less manual searching and fewer interruptions to staff workflow
What Can Be Said About the Scope of Implementation
The exact number of H&M stores equipped with overhead systems is not clearly defined publicly, but it is known that H&M Group uses RFID technology across several thousand retail locations globally. That is why it can be said that RFID in fashion retail is no longer an experiment, but a standard operational tool for large retail chains. RFID Journal lists H&M among the major fashion players that have implemented the technology in practice.
How RFID Changes Store Operations
When RFID becomes the main source of inventory data, the entire inventory management process changes.
- Receiving and Moving Goods – Items are recorded in bulk, without individual scanning, which speeds up processing and increases data accuracy.
- Replenishment and Availability – The system detects stock falling below a defined threshold more quickly, making replenishment more timely and precise. This reduces out-of-stock situations. (mckinsey.com)
- Inventory as a Routine – Instead of being a rare and burdensome activity, inventory counting becomes short, frequent, and reliable, especially with continuous in-store reads.
What This Means for the Business
The greatest value of RFID is not only in the hardware, but in adapting the entire system to the real process: from tracking locations and returns to aligning data between the store and the warehouse. In this context, Princ covers the key elements of such a transformation: from selecting tags and devices to implementation and business process optimization through tailored solutions.
