Whether you’re an SMB-sized footwear retailer, brand, or a multi-billion enterprise, “GenAI” is likely on your radar — if not already integrated into your business.
And if you’re looking to invest in the technology, there are a few things to consider. First is its groundbreaking capabilities.
Jill Standish, Accenture’s global retail lead, said what sets generative AI apart is that it is the first digital technology to be truly human by design. “It has ability to provide very relatable and relevant experiences gives retailers new opportunities to get closer to consumers through ‘conversational commerce,’ a technique reflecting the fact that people are hardwired for more natural, conversational, human-to-human interactions, especially when it comes to inspiration and product discovery,” Standish said, adding that a recent survey from her firm showed that 76 percent of executives “see generative AI as more of an opportunity than a threat and more beneficial to revenue growth than costs reduction.”
Shoppers are also onboard. “Consumers are waking up to the possibilities, too,” Standish said. “A recent Accenture survey found that two-thirds of consumers are already using, or would consider using, an AI shopping assistant that recommends other products that pair well with their purchase. A similar number say they are already using or would consider using an AI shopping assistant that recommends products within their budget.”
Alyx Kaczuwka, director of AI product development at XY Retail, a unified commerce platform that works with global luxury brands such as Armani, Fender, Damiani, Isaia and Slowear, said AI has the potential “to revolutionize the retail industry, including store layouts and customer experience.”
Kaczuwka said by providing insights, speed, and flexibility, “AI can help retailers to create more intuitive, efficient, and customer-centric stores, using intricate consumer insights, rapid prototyping, and fast modifications.”
Sounds like a dream come true. However, executives need to do a top-to-bottom assessment before writing a check. Shannon Wu Lebron, corporate vice president of retail industry strategy at Blue Yonder, has some pointers.
“Over the past year, there has been a push for accelerated AI adoption in retail, almost to a fault,” Wu Lebron told WWD. “For instance, a recent Blue Yonder survey of retail executives found that many leaders claim to be very knowledgeable about AI, yet lack understanding about the different types of AI, or ways to utilize it. This suggests retail leaders are overconfident and may be missing crucial opportunities or deploying AI without a clear set of business objectives.”
Wu Lebron said retail executives must consider generative AI solutions “based on the maturity and specific needs of their business units, whether it be for customer experiences, assortment planning, inventory placement, or pricing, etc. In addition, retailers should assess their organizational data management readiness. After all, AI won’t yield good results without good data.”
And lastly, Wu Lebron said not to underestimate the importance of change management with existing employees and business processes when introduced. “In summary, retailers who can identify specific use cases linked to clear business benefits, implementing AI with good data management foundation and successfully navigating the change process will come out ahead in AI-enabled retail transformation.”
Shopify Launches Massive Upgrade
Shopify has released a new update to its platform that includes over 100 new features and updates. Some of the new features include Semantic Search, POS Ship From Store, and an advanced checkout.
Semantic Search is a new feature that helps shoppers find products faster by interpreting the context behind their query. For example, if a shopper types in “best running shoes,” Semantic Search will return results for running shoes that are popular with other runners, even if the shoes don’t contain the words “best” or “running” in their description.
POS Ship From Store is a new feature that allows store staff to view online orders and get them picked, packed, and shipped directly from retail locations. This can help to reduce shipping costs and improve efficiency.
The new advanced checkout streamlines the checkout process to one page from three and cuts the checkout time by four seconds. This can help to improve conversion rates and reduce cart abandonment.
These are just a few of the new features included in Shopify’s Winter ’24 update. The update also includes a number of other improvements, such as new reporting tools, marketing automation features, and fraud prevention tools — all aimed at helping businesses of all sizes grow and succeed.
Many Planograms Better
Hivery has just revealed the release of Curate 1.0, which the company said allows retailers “to harness its AI capabilities for more effective assortments and planograms.” Hivery described Curate 1.0 as an intuitive and user-friendly SaaS platform, and that retailers no longer need to be “dependent on consultants or mysterious black-box services.”
Jason Hosking, chief executive officer and co-founder of Hivery, said when the company disrupted the industry with its approach to assortment planning, “it was about more than just technology; it was about empowering businesses with actionable strategies. With Curate 1.0, we’re taking a significant leap forward, enabling users to dive in and engage with the platform directly, ensuring rapid access to insights and strategies. It’s all about delivering value swiftly and simply.”
Ian Goodwin, chief product officer at Hivery, said Curate 1.0 “is more than just a tool; it’s an AI-equipped strategic partner that empowers users across the organization with critical business insights.”
The rollout of the SaaS platform comes at a time when retailers are focused on optimizing the processes across the business. Traditionally, planograms were limited in terms of strategic planning and testing. Implementing any changes was also slow — especially for retailers with hundreds of stores.
