Radar CEO Spencer Hewett on RFID’s Future in Retail | Old Navy & American Eagle Rollouts 🚀
In this Five Insightful Minutes episode, Omni Talk Retail catches up with Spencer Hewett, founder and CEO of Radar, to dig into the retailer’s growing RFID rollout with Old Navy and American Eagle.
Key Moments:
- (0:13) Spencer responds to Fast Five’s rollout skepticism 🎤
- (1:02) $1,000 Old Navy bet?! Chris and Spencer wager on RFID’s future 💸
- (2:01) What makes Radar’s RFID solution different
- (3:40) Tech behind Radar’s real-time tracking
- (4:00) Number of stores and rollout timeline
- (4:47) Why RFID handhelds are obsolete
- (5:45) Number of RFID tag reads per day at AEO
#RFID #RetailTech #RadarRFID #OmniTalkRetail #InventoryManagement #RetailInnovation #OldNavy #AmericanEagle #AutonomousCheckout #RetailFuture
Music by hooksounds.com
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Transcript
Foreigning us now for five insightful minutes is Spencer Hewitt, the founder and CEO of Radar, whose recent Old Navy partnership we featured in our Fast 5 podcast last month.
Speaker A: orm will ever roll out to all: Speaker A:So tell us point blank, what did I get right and what did I get wrong in my assessment?
Speaker B:Yeah, I think, you know, I, I think you're right in the sense that is a, it's a phased.
Speaker B:It's a phased rollout.
Speaker B:I think that, you know, Old Navy's a gap.
Speaker B:Old Navy, they're, they're very smart retailer.
Speaker B:They're pretty careful about their decisions.
Speaker B:The great vision, I would say, for, for where they think physical retail can go.
Speaker B:Yeah, I just say, like, listen, there's a reason why, like, American Eagle rolled it out to almost their entire fleet.
Speaker B:You know, I think you guys mentioned some kind of bet, like, about putting up your house or something.
Speaker B:I was wondering, like, what you might want to bet in case you were wrong.
Speaker A:Oh, man, I don't know.
Speaker A:Let's talk about.
Speaker A:We should talk about that.
Speaker A:The end.
Speaker A:And I had that bet going and yeah, I don't know what you're not.
Speaker B:You.
Speaker A:You and I, that should be.
Speaker A:But I'll buy you a beer.
Speaker A:I see you.
Speaker B:Yeah, I think, I think, I think worst case, like, if you're right, I'll get you a thousand dollar gift card to Old Navy.
Speaker B:And then if, if I'm right, then, you know, we can come back on the show and talk about it.
Speaker A:Yeah, I will eat crow in front of the entire audience.
Speaker A:100%.
Speaker A:100%.
Speaker A:And like I said at the end of that podcast too, I hope you are right, actually.
Speaker A:I hope you are right.
Speaker A:I wish you the most success in, in what you're trying to do too.
Speaker A:Well.
Speaker C:And Spencer, I, I had a different opinion than Chris.
Speaker C:Slightly different here.
Speaker C:But I want to know if you can just tell our audience quickly, like, what is it about your platform specifically and the unique special sauce that you bring to rfid?
Speaker C:And Wild Navy kind of chose you to roll this out in a phased approach, fleet wide.
Speaker B:Yeah, for sure.
Speaker B:So, you know, our approach to RFID actually started with wanting to deliver autonomous checkout as a use case for the industry.
Speaker B:And like, when you look at that use case, it's a lot more stringent in terms of the requirements you need to meet for it.
Speaker B:So it's like your location actually has to be better.
Speaker B:Your latency and speed updates have to Be much faster.
Speaker B:Your detect rate has to be super high.
Speaker B:So we've architected our system to have the capability to enable autonomous checkup from the existing infrastructure that we deploy to retailers from today.
Speaker B:And that has, you know, really driven core technological improvement.
Speaker B:And like, one of the things that we've done differently is, you know, there were some companies that did this back in the day.
Speaker B:Like, you know, Thing Magic had like a software defined radio approach where they could basically deploy hardware, they could update the signal processing remotely.
Speaker B:You weren't stuck with like someone's reader chip.
Speaker B:That's kind of more the approach that we've taken.
Speaker B:So we control everything from the ground up, not just the hardware and the signal processing, but also the software layer.
Speaker B:So we really become superior core technology.
Speaker B:That's really just like one throat to choke for the retailer where they don't need to worry about integrating and cobbling together a bunch of different pieces to make a coherent solution.
Speaker B:And that includes deployment and rollout management.
Speaker A:And Spencer, I'm curious too.
Speaker A:You mentioned autonomous checkout.
Speaker A:Are cameras and RFID readers a part of the solution as it's currently deployed?
Speaker A:Or how should the audience think about that?
Speaker B:Yeah, so we are only deploying RFID and other wireless technologies within these sensors.
Speaker A:Got it, got it.
Speaker A:And how robust are the deployments at this point?
Speaker A:So as much as you can share with us publicly, of course, we want to be sensitive to that.
Speaker A:But how many chains, how many stores?
Speaker A:Whatever you can tell us.
Speaker B:Yeah, you guys got that right.
Speaker B:So we're only in about 600 stores.
Speaker B:All of those stores really started rolling out in July of last year.
Speaker B:So we hit about 100 stores a month from July of last year, you know, and we're going to continue and accelerate that pace.
Speaker B:But yeah, you got it about right in the, in the last, last episode.
Speaker A:And it's currently at American Eagle and Old Navy.
Speaker A:That's what you guys have shared publicly, right?
Speaker B:Correct?
Speaker B:Correct.
Speaker B:Yeah, publicly.
Speaker B:That is the only two that are out.
Speaker B:And then there are many other pilots that are kicking off as well or already in play.
Speaker C:Spencer, I imagine that, you know, this is.
Speaker C:We've been talk.
Speaker C:We talked to you a long time ago when you kind of started rolling out with American Eagle.
Speaker C:But why have retailers been so slow to adopt rfid, do you think?
Speaker C:And, and how kind of give us a sense of how you see the future landscape playing out.
Speaker C:Like, will, will more retailers start using handheld scanners and then move to systems like yours?
Speaker C:Like what, where are you placing your bets?
Speaker C:You don't have to Give any specific bet that you're going to place yet.
Speaker C:I won't put that on you.
Speaker C:But.
Speaker C:But where are you placing your theoretical bets?
Speaker B:Yeah, I mean, I think handhelds are going completely away, I think.
Speaker C:How come?
Speaker C:How come?
Speaker B:Because they're, they're a technology that was driven by technical limitations of RFID tags themselves.
Speaker B:They're no longer necessary.
Speaker B:So it's like, you know, 10 years ago, handhelds were really needed to make RFID work because you had these tags where transistors were larger.
Speaker B:You need a lot more energy to power them up.
Speaker B:It's get really close to them to read them.
Speaker B:Now you can read these tags from so far away.
Speaker B:It's really about, okay, how far away can you read them from?
Speaker B:How few sensors do you need on the ceiling to cover the store?
Speaker B:And then how accurately can you locate now that you're reading them from really far away?
Speaker B:So that's kind of the dynamic that's shifting.
Speaker B:And I really think handhelds will be completely a thing in the past in the same way like barcodes will be a thing in the past, you know, in the next five to 10 years.
Speaker A:Wow.
Speaker A:So, Spencer, I want to press you a little bit on that too.
Speaker A:So, like, one of the things we always hear when we talk to people about RFID is the accuracy.
Speaker A:And, and, and one of the good things about the overhead readers is you get the real time data flow.
Speaker A:So, so how are you solving, how are you solving the accuracy problem comparative to others?
Speaker B:Yes, I mean, we've worked really hard on our, our receiver.
Speaker B:So, you know, I can say that in, you know, stores with, call it 65 to 100,000 items, we're hitting a 99.8% detect rate, better than you'll ever get with handhelds.
Speaker B:Because handhelds, you have to factor in human error because people don't always use consistently a job every day, day in and day out, as a system that's 24, seven counting things.
Speaker B:I'll tell you this much.
Speaker B:Right now we're doing 13 billion tag reads per day in American Eagle.
Speaker B:That's how frequently we're pinging their inventory.
Speaker A:Wow.
Speaker A:Wow.
Speaker A:Well, man, thanks for coming on.
Speaker A:Thanks for, thanks for sharing your insight with us and it's really great to have you and appreciate you taking the time to sit down with us.
Speaker B:Yeah, likewise.
Speaker B:This is fun and I appreciate it and looking forward to circling back and in the, hopefully the near future.
Speaker B:Thanks.
Speaker A:Thanks, Spencer.
