News in the Channel - issue #12

RETAIL

AI influence AI is becoming more of a factor for retail businesses. says that in terms of trends, AI is dominating conversations with resellers, given the significant opportunities these solutions offer their retail clients, Nick says. “The immediate availability of AI-enabled chatbots, for example, makes it possible for retail brands to be available 24/7, ensuring that customers can place orders and seek assistance at any time of the day,” he says. “This level of accessibility is a game- changer in today’s fast-paced world of retail, meeting the diverse needs and schedules of consumers while handling large volumes of inquiries simultaneously. This is fast becoming a customer expectation, so we’re seeing increased demand from resellers for more reliable and efficient AI chatbot technologies as they become a key part of the online customer journey.” Barry Grange, chief executive officer at Retail Express, adds that the rise and popularity of AI tools like ChatGPT has fuelled an explosion of interest within the C-suite. “This, in turn, has added impetus to the digital transformation of retail and fostered a growing appetite for algorithmic retailing – the use of AI to create more intelligent retail and merchandising practices, helping to drive automation and secure competitive advantage,” he says. “In these difficult economic times, the introduction of AI technology offers retailers the one-time generational change they need. Properly planned and managed, algorithmic retailing provides improvements to the cost and effectiveness of planning, the execution of merchandising, and collaboration with suppliers. Moving to an AI-backed retail model is a must, particularly for proactive larger retailers for whom the most significant opportunities exist. “AI technology brings automation and optimisation into end-to-end retail and merchandising processes. Traditionally, retailers have found this difficult, partly due to siloed foundational legacy systems. Prioritising the creation of integrated systems and common data infrastructures unlocks the potential of AI to make meaningful change. “The transition to algorithmic retailing is a marathon, not a sprint. We are only in the first innings of retail AI. But some business areas can make major moves now, particularly the under-invested and underappreciated areas of merchandising and supplier negotiation.

Retailers negotiate with thousands of suppliers to build joint promotional plans, a process which is rife with spreadsheets, phone calls, emails and siloed systems. The opportunity to replace these challenging systems with a guard-railed AI model offers incredible optimisation to one of the most important processes in the retail sphere. “Retailers must address process change and embrace digital transformation in the next several years or they will fall back badly. So why not now? Remove silos, refine system infrastructure, and invest in AI for that strategic first-mover advantage.” Differentiation demand James adds that technology will continue to be the differentiator for retail businesses, which gives resellers ongoing opportunities. “The pandemic led many to adopt new technologies, whether that be customer- facing ecommerce or behind the scenes trade channels, to simply keep operating,” he says. “This meant that for many firms, these technologies quickly became the norm. Any retailers who didn’t adopt new technology are now behind their peers, no matter the reason for onboarding this technology. “Those who did adopt are now reaping the benefits and growing from there. What was an urgent fix is now being used to improve efficiency, deliverability and processes across the board. “Now more than ever, customers are demanding differentiation from their retailers, whether that be sustainable choices or customer experience, and technology can be a huge driver for this. This can be through point-of-sale displays, shorter wait times or better offers.” Rob adds that retailers that embrace and invest in technology are more likely to stay relevant and continue to gain a competitive edge over their rivals. “Ultimately, retailers are using technology to improve customer experience and increase profit margins to try and outrun inflation,” he says.

In these difficult economic times, the introduction of AI technology offers retailers the one- time generational change they need. Properly planned and managed, algorithmic retailing provides improvements to the cost and effectiveness of planning, the execution of merchandising, and collaboration with suppliers. “

”