Abstract: An item monitoring system is provided which is operative at points of storage automatically to sense the presence, number of item(s) stored and relative location of items and to generate near real-time item and location data from storage locations so that time-related changes can be compared to detect item additions and subtractions, and to recognize and report events such as shrink/theft, low inventory conditions and misplaced items. Embodiments incorporate a surface sensing system comprised of one or more contiguous item sensor strips that measure the relative pressure of items in contact with a surface or a hanger support using pressure sensitive analog type conductive material. Item information can be collected from multiple hangers and/or storage surfaces and relayed to databases and application systems for varied uses. The system and method disclosed are cost effective and widely applicable to many categories of inventory application providing real-time updates without item packaging changes.