Algorithmic retailing will be the strategic game-changer that unlocks growth in these turbulent times, a new Retail Week digital guide reports.
There is one thing successful retailers have in common, particularly in these uncertain times: a firm grip on data.
From optimising pricing to minimising out of stocks, the ability to adapt with speed and agility has never been of greater importance.
The New Retail Model: four steps to true algorithmic retailing, produced in association with Tata Consultancy Services, reveals how retailers can reshape their business to make their data really work to drive conversion.
Over the last few years, disruptive technologies such as AI and blockchain have been hot topics across the industry. However, they have really come into their own in 2020 with lockdown proving that those that are able to shift gears at the flick of a switch are the ones that will prosper.
Investment in data, specifically the transformative power of AI, now needs to go from an industry talking point to affirmative action.
Using these disruptive technologies will automate the decision-making process across many functions and areas of the business, allowing key stakeholders to focus on top-level strategy.
A new way of working
AI-generated insights are transforming retailer approaches across a range of different disciplines.
Merchandising is one area that can really benefit.
Grocery retailers can tell instantly how the appearance of bananas on a shelf is affecting sales, enabling them to work with their suppliers to improve demand forecasting and replenishment, optimise pricing and minimise waste.
Furthermore, machines can process millions of data points to reveal how changes in local variables such as the weather and promotional activity will impact demand for a certain item of clothing, allowing fashion retailers to automatically increase or decrease replenishment accordingly.
Designers are able to stay one step ahead of the latest fashion trends using data gathered from millions of unstructured data sources such as social media images or influencer blogs to inform the design process.
Those who create market-leading omnichannel experiences powered by algorithms will emerge as the winners in this new retailing world.
Want to hear more about why algorithmic retailing is the future? Then download Retail Week’s digital guide The New Retail Model and discover:
- The four key steps to achieving an algorithmic-led strategy
- How AI will transform merchandising
- Why algorithmic retailing will ensure a great customer experience
- Case studies on Yoox, Kingfisher and Walmart