Tilly's Partners with Nedap to Deploy RFID Solution Across All Stores

Tilly's has partnered with Nedap to deploy RFID technology across all its stores nationwide. Starting in Q2, the goal is to enhance inventory accuracy, optimize product availability, and streamline operational efficiencies. The main objectives are to increase inventory accuracy and ensure on-shelf product availability across all stores, while integrating inventory data across their three primary revenue streams.

Tilly's (TLYS) has announced a strategic partnership with Nedap to deploy RFID technology across all its stores nationwide, aiming to enhance inventory accuracy and optimize product availability. Starting in Q2 2025, the initiative will focus on integrating Nedap's iD Cloud solution to streamline item tracking from distribution centers to store shelves, supporting Tilly's omnichannel strategy including same-day delivery and in-store pickup services [1].

The partnership centers on three primary objectives: increasing inventory accuracy, ensuring on-shelf availability, and integrating inventory data across Tilly's physical stores, e-commerce platform, and mobile app. By providing real-time tracking of items, the technology aims to 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 [1].

The implementation of RFID technology addresses a fundamental retail challenge: inventory accuracy. Traditionally, inventory accuracy hovers around 70-75% in retail environments, but RFID technology can potentially increase this to 98%+ [1]. This improvement can reduce stockouts, which typically cost retailers 4-8% in lost sales, and optimize working capital by maintaining leaner, more accurate inventory levels [1].

The partnership 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 while optimizing working capital. The 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 [1].

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 [1].

This strategic investment in operational infrastructure highlights Tilly's commitment to addressing critical retail challenges and driving sustainable growth. The successful implementation of Nedap's iD Cloud RFID solution across all stores is expected to have a significant impact on Tilly's operational efficiency and sales performance.

References:
[1] https://www.stocktitan.net/news/TLYS/tilly-s-partners-with-nedap-to-elevate-omnichannel-nue5as3r4hk6.html