• Brand names: RENUAR & TwentyFourSeven
  • Industry: Fashion and Apparel
  • Location: Israel
  • Stores: 150+
  • Employees: 1300+

RENUAR group is a leading Fashion and Apparel retailer in Israel combining two brands RENUAR and TwentyFourSeven. Since its foundation in 1994, RENUAR has grown into a huge success in the Israeli fashion industry, with more than 150 stores. Notably ranked as the 5th largest retailer in Israel, RENUAR specializes in fashionable attire for both Women and Men. Aside from having stores throughout the country, RENUAR also successfully sells online.

The Challenge: Inventory Management Amid RENUAR's Expansion

As RENUAR experienced rapid growth, managing inventory became increasingly complex. Manual, infrequent inventory counts led to inaccuracies, leaving the recorded stock at odds with actual availability. This discrepancy affected on-shelf availability, hindering sales and leading to delayed replenishments from the warehouse. Furthermore, the lengthy process of manual validation of shipments diverted attention from sales efforts to logistic operations. Amidst these challenges, difficulties in item traceability within stores and backrooms led to frustrations for both customers and staff, impacting service quality and sales potential.

The Solution: RFID implementation in all RENUAR’s stores

Recognizing that a company of the size of RENUAR could not depend on manual processes and needed to automate for further growth. This led to the initiation of RENUAR's partnership with Chainlane back in 2019.

The RFID Implementation

To kickstart the project, Chainlane leveraged its extensive global partner network to identify the optimal tagging service for RENUAR in its manufacturing country. This way, they could get items that were already tagged. Meanwhile, Chainlane and RENUAR established seamless integration between Chainlane's platform and RENUAR's systems for smooth data flow.

When the tagged item arrived Chainlane provided each store with a DENSO SP1 RFID reader combined with Chainlane’s user-friendly software. Then, after short training sessions, RENUAR started to count inventory using RFID in every store.

Inventory count using RFID reader and Chainlane platform

The partnership with DENSO WAVE

RENUAR requested trusted and powerful hardware to equip its stores, that’s why DENSO WAVE’s SP1 was chosen as the handheld RFID reader. The SP1 reader smoothly connects with the Chainlane app for a seamless solution. This allows store employees to count inventory, validate shipments, and search for items, all quickly and effortlessly with the highest reliability.

The DENSO WAVE SP1 RFID handheld reader used in RENUAR's stores

Results: RENUAR leading innovation and efficiency while reducing operational challenges

Implementing RFID transformed RENUAR's inventory practices significantly. From annual counts to weekly counts, now taking only an hour to complete. This has boosted accuracy rates exceeding 99%, elevating item-level tracking precision. As a result of this enhancement, discrepancies could be investigated more thoroughly, allowing errors to be identified and resolved more effectively.

As soon as items were tagged, the impact was evident. A hybrid count method revealed distinct accuracy gaps between RFID-tagged and manually counted items. Tagged items consistently maintained better stock availability compared to their non-tagged counterparts, reducing sales losses notably.

After four months only, the entire store was RFID-tagged, producing concrete benefits. This included the efficient organization of specific inventory groups, with a clear distinction between backroom and sales floor operations, enabling quicker investigations and replenishments.

Store employees praised RFID for boosting sales by improving product availability and making item finding effortless. The SP1 reader together with Chainlane’s item search feature replaced slow manual searches, making the process quicker and more efficient.

As a result, RENUAR achieved higher sales, happier customers, and increased job satisfaction for employees, all while cutting down on losses, errors, and operational costs.

"Thanks to Chainlane, our weekly inventory checks aren't so time-consuming, and we see phenomenal results with our supply chain operation and our inventory management."

–Shmulik Kastro, CIO, RENUAR

Next to come; the future with RFID

As a result of the success of Chainlane’s RFID solution in stores, RENUAR has decided to expand RFID’s capabilities to its warehouses, as well as implement additional RFID enabled innovative features to enhance its’ customer engagement and in store efficiency. Stay tuned!