A system and method is provided for autonomous monitoring of items by smart peg devices. On occurrence of a predetermined event, a smart peg device analyzes sensor data received from a set of sensors associated with a set of items. The set of sensors includes a weight sensor and/or a proximity sensor. The smart peg device determines a status of the smart peg device based on the analyzed sensor data and a set of criteria. The status may include a number of items associated with the given peg, a weight of the item(s), and/or a location of item(s) associated with the given peg. The smart peg controller determines whether to send a notification based on the status. If a notification is needed, the smart peg device outputs the notification to a remote computing device. The notification may include the determined status and/or a recommended corrective action.