AI Adoption in 2023 Propelling Retailers to Success Amidst Recession

On a good day, retail is an incredibly complex and challenging business. With record setting inflation and a looming recession, the conditions of modern retailing have become staggeringly difficult. 

Retailers determined to find solutions for the growing workload are turning to artificial intelligence (AI) adoption in 2023 - which is helping to grow rapidly shrinking margins and secure customer loyalty.  

Without a doubt, AI will be the force that propels retailers through this difficult economic period and into lasting success.

                                 
State of the Retail Industry in 2023

The pain of today’s economic challenges will most greatly felt when making promotion and pricing decisions. To continue to win customer loyalty through the recession, retailers must avoid passing inflation-driven price increases onto consumers as much as possible. To do so, they will be forced to become increasingly strategic about pricing by deciding where to invest in products. 

An added difficulty is the availability of promotional products – many of which may no longer be viable due to the rising costs. For example, many retailers are having to pivot to promote staples in different unit sizes to be more cost effective.

Consumers continuing to grow ecommerce channels adds yet another layer of complexity. Ecommerce is simply not profitable for brick-and-mortar retailers – in fact, the more they sell online the less profitable they are due to the costs incurred picking, packing, and delivering orders. Retailers will have to fight to keep customers in store to see profitability – and with already razor thin margins, there is little room for error.

Ultimately, consumers are looking to retailers to provide the right items at the right prices more than ever before. One thing is clear: retailers that invest in promotions and discounts will win in the recession. To achieve winning item and price combinations, AI is a must have.

Importance of AI Adoption in 2023 

AI simulates millions of item, price, demand, space, and assortment decisions – offering impactful recommendations that both satisfy customer needs and grow retailers’ top and bottom line.

AI accesses and processes data at a level that eclipses even the best human effort. With retailers facing more – and more difficult – work, we’re in a moment of time where AI is the only viable solution. Today’s challenges simply cannot be solved with the addition of more people.

Smarter decision-making with intelligent automation is the key. Being smart in the execution of merchandise plans is invaluable to achieving profitability in today’s retail environment. With AI providing impactful decisions for promotions all the way to assortment planning, it offers the guidance necessary to see success.   
            
Being a retailer has always been challenging – and we commend retailers for doing a demanding job incredibly well. However, as the industry is increasingly pressured with inflation and a recession, it is critical retailers turn to AI technology to get the support they need.

With the bulk of retailers already adopting or planning for AI adoption in 2023, it is no longer a technology of the future. AI is here, and it is the leading solution to making it through this difficult moment of business.