Radio Frequency Identification technology has been around for a while, but only recently has there been a great interest in the use of the technology in the retail business. Wal-Mart, a leader in innovation in the retail industry has already requested that all its supplies adopt the technology by 2010. The challenge faced by retailers and suppliers alike is to develop an inventory system, which incorporates RFID technology. We are trying to fill this gap by providing a solution using Radio Frequency Identification tags to keep track of products on store shelves, in inventory, and products that are bought. The system will feature RFID tags and readers. Readers will be located in the storeroom, store shelves and at the point-of-sale terminals. We shall be focusing the project on software development and will outsource the supply of RF tags and readers to TAGSYS. The project aims to design and develop management software, which will incorporate RFID technology, will enable store management to know the current status of products on the shelves, what is selling, and what is in the stockroom. Features of the software will include notifying users of empty shelves, list items sold, and automatic product reordering. A fully functional prototype system will be developed by April 2004.