AI in Retail

The Retail Industry is a dynamic sector requiring a careful combination of creativity, business theory, skilled practice, complemented by technology to create value for customers. Explore the opportunities to unleash the full potential of your data in the retail sector

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Retail Performance Drivers

Here are our top-6 performance drivers for applying AI & analytics in Retail.

Customer segmentation

Retailers get transparency on their customers and different customer groups. They can make campaigns and offers more targeted, streamline the assortment towards customer’s needs.


Retailers can optimize their pricing strategy by identifying Key Value Indicators, i.e. products for which the price is exceedingly important. Also, retailers can use competitive intelligence to adjust their prices and leverage local and temporal information to make prices dynamic.

Promotion effectiveness

Retailers get transparency on the effectiveness of promotion activities (revenue, margin, store visits) in order to develop strategies for more impact-focused campaign management and discounts.

Store segmentation

Retailers get transparency on their stores and different types of stores which helps them to derive a specific strategy for each sales location.

Personalized promotions

Retailers can make customer offers to customers based on their needs. By understanding which promotions are meaningful for a specific customer, retailers can move away from mass communication to personalized interactions with their customers.

Assortment optimization

Retailers can gain competitive advantage by comprehending, monitoring and optimizing assortments at the macro, store cluster and store levels. They can leverage their insights to align the assortment with customer needs, simplify the supply chain and gain control of vendor negotiations.

How to identify Machine Learning Opportunities in your Retail organisation?

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The Retail Challenge

Value-creating functions of the retail sector are providing an assortment of products and services, breaking bulk, holding inventory and providing services. In addition, the industry is undergoing rapid change: customers scrutinise retailers today under a new set of value standards, including social responsibility, environmental impact, workplace safety and diversity, and the forces of globalisation and trade. Digital disruption continues to influence the retail sector significantly - Amazon is a symbol of this threat to the incumbents.

The challenge for retailers is responding to the economic, technological, and customer disruptions with a sound retail management strategy. E-commerce is the one getting the most media coverage. However, technology and online customer behavior are not a threat to retail but should be a part of the strategy, so the economic and technological trends from e-commerce still are a driver for the need to innovate in the retail sector.

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