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H&M tracks store inventory in real time with RFID, AI

H&M storefront
H&M is tracking inventory with RFID.

A global fashion giant is leveraging RFID and artificial intelligence to better manage inventory at its stores.

H&M Group is deploying the GreyOrange AI-based gStore inventory platform, which includes merchandising software and connects with technologies such as RFID readers and smart mirrors, at hundreds of retail locations globally.

The gStore platform uses sensor-agnostic technology, including overhead or handheld RFID readers, to locate specific inventory items to within three to five feet. It connects with sales data to help inform H&M which SKUs sell the fastest and which get abandoned in fitting rooms, where to place products to optimize sales, and when stock is running low. 

Utilizing this real-time inventory “heat map,” H&M helps associates more quickly replenish shelves and find items for customers. H&M is building on an existing implementation of GreyOrange robotic fulfillment technology in its warehouses. 

The retailer leverages GreyOrange robots to perform a wide variety of tasks including handling folded inventory and goods on hangar, as well as cross-channel inventory conversion through intelligent recall and re-slotting features. 

The robots also perform parallel batch picking, which allows picking of multiple orders simultaneously to help increase the efficiency of online order fulfillment.

[READ MORE: CSA Exclusive: H&M streamlines fulfillment with robotics]

Since rolling out the GreyOrange GreyMatter warehouse orchestration platform in a West Coast distribution center in 2021, the implementation has expanded from U.S. distribution centers to a global footprint, with GreyMatter deployed across additional North American facilities. 

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“H&M Group constantly explores new technologies that improve how our customers shop and how our teams work,” said David Pino, head of emerging technology at H&M. “Beyond a strong product, scaling technology across our network takes a specialized understanding of how stores, fulfillment operations and inventory flows work together to support a seamless customer experience. With GreyOrange, we’re refining store and fulfillment workflows to meet the speed, complexity and omnichannel demands of global fashion retail.”

According to H&M, using gStore has driven operational efficiency in stores through better inventory management, faster replenishment and increased picking efficiency. In the distribution centers, GreyMatter has enhanced fulfillment performance by streamlining order processing, reducing operational costs and speeding up e-commerce deliveries.

“Many of the world’s largest retailers run their core operations on GreyOrange,” said Akash Gupta, co-founder and CEO of GreyOrange. “Their scale, operational complexity, and willingness to co-develop the future of omnichannel technology rather than simply adopt it have helped us shape how our platform performs,” “We’ve reached this milestone of 3,800 stores live thanks to customers like H&M Group, whose deep partnership empowers us to keep building physical AI solutions that fit how busy retailers operate.”

H&M Group plans to deploy gStore in more stores over time.

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