Radar, an inventory management startup founded in 2013 by Spencer Hewett, has reached a valuation of over $1 billion following its latest funding round. The company raised $170 million in Series B financing co-led by Gideon Strategic Partners and Nimble Partners, with participation from Align Ventures. Backed by American Eagle Outfitters CEO Jay Schottenstein, Radar has shifted its focus from instant-checkout technology to solving the persistent retail challenge of inventory visibility.
Radar’s system uses ceiling-mounted hardware to track RFID tags with 99% accuracy, enabling real-time digitization of inventory. The technology is now deployed in more than 1,400 stores, including Gap Inc.’s Old Navy and American Eagle. Schottenstein noted that the system allows teams to prioritize customer experience by eliminating manual tracking. The platform has significantly reduced order cancellation rates in “buy online, pick up in store” services, dropping from 25% to 3%, while also helping store associates locate specific items quickly to avoid lost sales.
Beyond customer-facing benefits, Radar provides real-time audits of supply chain deliveries to reduce inventory loss from theft, damage, or administrative errors. One client reported a 60% reduction in shrink at a pilot location. The system flags discrepancies in shipments instantly, making tasks that were previously too labor-intensive manageable and efficient.
The company’s success highlights the growing role of RFID and AI in retail innovation. While Radar focuses on inventory management, other retailers are introducing AI-powered assistants to enhance customer experiences, such as Guitar Center’s Rig Advisor, which replicates human associates by offering product guidance on demand. Together, these technologies are reshaping how customers shop and how retailers manage operations.
