What: A retail technology pioneer is revolutionizing merchandise planning by replacing traditional Excel-based systems with AI-powered solutions that enhance profitability and operational efficiency.

Why it is important: This evolution in retail technology marks a pivotal advancement in how retailers approach inventory management and demand forecasting, offering a solution to the widespread challenge of operational silos and inefficient planning processes.

7thonline's journey from a wholesale planning tool startup to a global leader in omnichannel merchandise solutions exemplifies the transformation of retail technology. The company has evolved by integrating advanced data science with over 25 years of business expertise, serving major brands like Patagonia and Calvin Klein. The company's mission extends beyond mere efficiency improvements, aiming to create time for innovation by freeing retail professionals from manual processes. Their platform leverages AI and machine learning to revolutionize merchandise planning and allocation, with a particular focus on breaking down operational silos and enhancing cross-channel inventory planning. The technology enables granular, real-time demand insights at the SKU level for each store location and selling week, helping businesses align inventory with localised demand. Their success is evidenced by clients achieving ROI within the first year, demonstrating the tangible benefits of replacing traditional Excel-based systems with sophisticated AI-driven solutions.

IADS Notes: The retail industry's urgent need for digital transformation is highlighted by Coresight Research's findings in November 2024, revealing that retailers lose 4.5% of gross sales due to merchandising inefficiencies . This aligns with 7thonline's mission, as October 2024 research demonstrates how AI-powered demand forecasting is delivering significant improvements in speed and accuracy . The market's trajectory supports this direction, with the global retail pricing optimization software market projected to reach USD 1.6 billion in 2024 , indicating strong demand for solutions that can effectively integrate AI into retail planning and operations.

How fashion is shaking up its global sourcing strategies