Merchandising has always been a key element of retail success, from creating inventive displays to navigating the challenges of seasonal sales and promotions. AI merchandising solutions are taking this role to the next level, empowering merchandisers with automation and insights that can boost top-line revenue.
AI-based merchandising tools help retailers make sense of customer data and create personalized shopping experiences, whether it’s for an online store or brick-and-mortar location. Using a machine learning algorithm, these AI-powered products can evaluate a massive amount of data to spot trends in search queries and past purchases, then recommend items that will match those preferences, driving sales and improving the overall customer experience.
AI Merchandising: How Artificial Intelligence Enhances Product Placement
By using generative AI to identify and analyze customer behavior and demographics, visual merchandisers can automatically update, localize, and personalize their product offerings and marketing messaging. This saves time and effort and provides a more accurate picture of customer demand.
Intelligent merchandising solutions can also help retailers optimize their inventory to reduce stockouts, overstocking, and restocking costs. These tools take product size, style, and category into consideration to display only products that are available in each shopper’s size, eliminating friction and frustration caused by out-of-stock items.
Similarly, intelligent inventory management tools can use AI to analyze historical data and make predictions about future inventory needs. This can lead to more precise planning, minimizing the risk of over-ordering and losing money on unsold inventory, or under-ordering and missing opportunities for revenue growth.