Can Artificial Intelligence Save the Retail Industry?

A new study conducted by Coresight Research and Simbe Robotics revealed that in-store inefficiencies are a major challenge plaguing the retail industry. According to The State of In-Store Retailing: Opportunities To Redefine Operations, over 70% of retailers suffer a loss of at least 5% in operating margin due to inefficiencies within their brick-and-mortar stores. 

The report surveyed 150 retail decision-makers across the U.S. and attributed losses to several factors, including managing operations across the store, out-of-stock items, price and promotion execution, planogram compliance, e-commerce fulfillment, and assortment planning

To fight these inefficiencies, retailers are turning to Artificial Intelligence (AI) to improve performance across inventory management, operations, and planning. This includes:

• More budget toward better technology. More budget is being allocated toward better technology, with the majority of retailers (58%) planning to allocate 6 to 9 figures to enhance their in-store intelligence capabilities.
• Optimizing store performance, and delivering advanced data analytics. Over half of retailers indicate a strong interest in in-store intelligence platforms that automate inventory tracking (63%), optimize promotion and pricing (56%), and provide advanced data analytics (59%).
• Optimize critical store-related processes. Among surveyed retailers that are currently investing in store intelligence technologies, the highest proportions are investing in advanced data analytics solutions (62%), promotion and price planning/optimization (60%), and automated inventory tracking systems (58%).

“Modern retail has simply become too dynamic for status quo tools, and retailers who fail to adapt are experiencing the financial ramifications,” said Deborah Weinswig, CEO and Founder of Coresight Research. “As the retail technology industry continues to advance, we’re seeing more leaders invest in proven AI-and data-based solutions that drive efficiencies and enhance transparency throughout the store. This study underscores the critical role of store intelligence in closing the revenue and information gaps that exist today.”