AI to Revolutionize Retail Profitability, Say Industry Experts
Artificial Intelligence (AI) is set to revolutionize retailing and profitability, according to industry experts. At Retail's Big Show 2025, David Roth, CEO of The Store - WPP and chairman of BAV, discussed AI's potential to rewrite retailing and profit and loss (P&L) ratios. The event featured discussions on AI, with prominent panelists from companies like Albertsons, Schwarz Digital, Pacsun, and Vendors in Partnership.
AI's role in retail extends beyond customer-facing aspects. Lidl uses AI to translate and summarize employee training materials, automating answers to basic customer queries in call centers. AI can also transform product selection, merchandising, supply chain management, returns, and marketing. Pacsun's AI-driven app, Chatty, provides employees with quick, accurate information, boosting employee morale.
Key companies driving AI in retail include Shopify, which offers AI-driven tools for inventory management and demand forecasting, and Verve Group SE, which enhances shopper activation and digital solutions through acquisitions like acardo Group AG. Albertsons Companies uses AI to train its 275,000 frontline associates, reducing the need for best associates' time and providing real-time training.
AI is not about replacing employees but augmenting their capabilities, leading to better customer service and employee experience. Retailers, historically early adopters of innovation like plate glass, electric lighting, elevators, and barcodes, are poised to embrace AI. Retail's Big Show 2026 aims to build on the success of previous events, focusing on practical education and futuristic AI solutions in retail.
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