For specialty apparel retailers, big box stores, and everyone in between, RFID technology has become essential for inventory accuracy, shrink prevention, and operational efficiency. But when it comes to choosing between handheld RFID scanners and overhead readers, the decision isn’t always clear-cut.
In a recent OmniTalk Retail Technology Spotlight episode, two GreyOrange experts went head-to-head in a friendly but informative debate that every retailer considering RFID deployment needs to hear. Madalynn Lauria, Director of Go-to-Market Strategy, championed handheld scanners as the accessible, proven entry point. Pareiya Gupta, Director of Product Innovation and co-creator of GreyOrange’s GTO platform, made the case for overhead readers as the continuous intelligence engine that powers modern smart stores.
Understanding the Technology Options
Before diving into the debate, it’s worth understanding what each technology brings to the table.
Handheld RFID scanners are exactly what they sound like, portable devices that store associates use to scan RFID-tagged inventory throughout the store. They’re the tried-and-true approach that many retailers have used successfully for years. With minimal infrastructure requirements, retailers can start with handheld scanners by simply tagging products and conducting regular counts.
Overhead RFID readers, by contrast, are antenna devices embedded in store ceilings that continuously read tagged inventory. Think of them as stationary robots hovering above your sales floor, constantly monitoring what’s where. They provide real-time location data down to specific zones without requiring any manual scanning.
The Budget-Conscious Retailer’s Dilemma
One of the most common questions retailers ask is: “I want to test RFID, but I have minimal budget and staff. What should I do?”
Madalynn’s approach focuses on proving ROI before major infrastructure investment. “When you’re thinking about RFID and you want to get started, what’s the easiest thing you can do? Pick up your own device, put on your own labels, and just start counting and see what you see,” she explains. Handheld scanners allow retailers to achieve 98% inventory accuracy within the first count, providing immediate validation of RFID’s value.
Pareiya takes a different angle, suggesting retailers run a side-by-side test. “Pick one store, do an overhead install, pick another store, do a handheld trial, and then just compare the results,” she recommends. She points to Fabletics as a case study. Fabletics started convinced they wanted all handheld stores but switched to 100% overhead deployment within a year after seeing the sales uplift and self-funding ROI.
Inventory Counting: From Hours to Minutes
Both experts agree that traditional inventory counts, i.e. those cold pizza nights with staff and gig workers counting for hours, are unsustainable. The question is which technology eliminates that pain most effectively.
Madalynn acknowledges that while handheld scanners dramatically reduce counting time compared to manual methods, they still require labor hours. “Auditors are fine with us using handhelds for physical inventories,” she notes, highlighting that the approach is approved and accurate but still requires someone to walk the store.
The overhead advantage becomes clear here. As seen in the Fabletics store tour, one person completed an inventory count in 18 minutes using the combination of overhead readers providing continuous data and handheld scanners filling gaps. The overhead readers eliminate the need for associates to scan every location repeatedly because they already know what’s there.
Shrink Prevention Gets Smarter
When it comes to preventing stock loss, both technologies offer value, but overhead readers provide a unique advantage: they know when products leave without being sold.
“If a product without a transaction is leaving the store, a handheld, until you do a scan, you’ll not be able to identify it,” Pareiya explains. “In an overhead environment, you will not only know what items left the store, you will also know where they were last seen and what time.”
This creates what Pareiya calls a “heat map of loss” that helps retailers identify patterns. Some retailers have discovered specific inventory disappearing from back rooms at particular times, enabling them to address internal theft issues that would have gone undetected with periodic handheld scanning.
Responding to TikTok Trends in Real-Time
Modern retail moves at the speed of social media. When a product goes viral on TikTok, retailers need immediate visibility into what inventory they have and where it’s located, not just in one store, but across their entire network.
This is where overhead readers and intelligent platform integration shine. Pareiya describes a scenario where Taylor Swift’s concert drives demand for sequin tops in New York stores. An intelligent system with overhead readers can identify that those items are slow movers in Philadelphia stores and fast movers in New York, automatically recommending store-to-store transfers within hours.
“You’re not just impacting the top line for one store, you’re impacting the top line for your store network,” Pareiya points out.
Madalynn shares a cautionary tale from recent store visits where interactive mirrors suggested items that weren’t actually in stock. “Why do we suggest it if we know we don’t have it?” she asks. “That link is broken.” This disconnect between customer-facing technology and inventory reality represents the gap that proper RFID implementation, whether handheld or overhead, needs to close.
The Hybrid Reality: Both Technologies Working Together
Perhaps the most valuable insight from this debate is that it’s not truly an either/or decision. Both experts ultimately agree that hybrid approaches often deliver the best results.
“If I have high velocity stores, I’d rather put overhead,” Pareiya explains. “If I have slightly slower velocity stores, I’d maybe put handheld. If I have extremely big stores, I would maybe put a hybrid within the store environment itself, high velocity areas with overhead and slower velocity areas with handheld.”
The key is matching technology to specific business needs. Retailers testing RFID value can start with handheld scanners to prove the business case. Those ready for comprehensive visibility and continuous intelligence can deploy overhead readers. And many will find that combining both technologies based on store format, product velocity, and budget constraints delivers optimal ROI.
Making Your RFID Decision
For retailers evaluating RFID options, the debate offers several actionable insights:
Start by defining your primary challenge. Is it inventory accuracy? Labor reduction? Shrink prevention? New arrival visibility? Your answer should guide your technology choice.
Consider your current state. Do you have the IT infrastructure and data integration capabilities to support overhead readers? Or do you need a lighter-lift solution to prove value first?
Think beyond hardware. Both experts emphasize that the platform and intelligence layer matter more than the scanning technology alone. Look for partners who can help you evolve from basic counting to comprehensive inventory intelligence.
Plan for the future. Even if you start with handheld scanners, ensure your platform can integrate overhead readers later as your needs and budget grow.
The RFID debate isn’t about declaring a single winner (though its a catchy way to title a podcast). It’s really about understanding how each technology serves different retailer needs and recognizing that the smartest stores often use both.
Be careful out there,
– Chris, Anne, and the Omni Talk team
P.S. See our past 8 years of wonderful Spotlight Series podcast guests, featuring roughly 200 movers and shakers in retail, by clicking here
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Omni Talk® is the retail blog for retailers, written by retailers. Chris Walton and Anne Mezzenga founded Omni Talk® in 2017 and have quickly turned it into one of the fastest growing blogs in retail.