What: The report outlines AI’s pivotal role in optimising companies’ merchandising strategies, such as their assortment planning and demand forecasting strategies.

Why it is important: Coresight Research estimates that retailers lose 4.5% of their gross sales annually due to in-store inefficiencies, underlining key merchandising shortfalls in modern retail operations.

The report focuses on four main usages of AI for retail merchandising:

• the role of AI across key business functions,

• demand forecasting and how to use AI and data-driven insights to respond to demand,

• assortment and allocation planning using AI that analyses data into hyper-localised inventory insights,

• and using AI for precise, efficient inventory replenishment.

AI for Merchandising: Applications, Implementation and Benefits