In recent years, the retail industry has been adapted to the digital transformation. This digitalization has increased the accuracy and speed across every branch of the retail business, both in and outside the stores. Advanced data and predictive analytic systems made it possible to help companies by making data-driven decisions. None of these insights from customer service to store operations or supply chain to location analytics would be possible without the use of artificial intelligence. AI in retail has empowered businesses with high-level information and data that can be used to improve retail operations and create new business opportunities. Especially in this changing retail landscape during the COVID-19pandemic, retail companies are looking for the best possible locations for new stores, want to maximize the potential of existing shops and make well-informed decisions about shop closures or relocations. In this article, we will further explain what artificial intelligence in retail looks like.
Advanced analytics for retail
Advanced AI analytical solutions convert raw data into actionable insights for retailers. Today’s dynamic retail industry is based on data-driven retail experiences and higher customer expectations. As physical and digital channels merge, those retailers that can innovate their retail locations and channels will stand out as new market leaders. Retailers know their shops best and have developed a strong feeling for the factors that determine success. But in complex times, combining all these factors and using data-driven solutions makes the difference between mediocre or successful performing stores. Being in the right location is the critical factor to success in retail.
To determine where to place new stores, artificial intelligence should be used. AI makes it possible to collect different types of data, such asmarketing data, household distribution patterns, and traffic volume to determine the likelihood of success of a particular shop in an area. In addition, AI can be used in the retail sector to determine for instance the optimal turnover of a store, the impact of physical stores, the attractiveness, and the spend potential of their customers. An AI model can make such decisions based on many different data sources after which analyses are executed. Using AI analyses could lead to some interesting and unexpected strategic locations which human decisions could have overlooked. Besides, these insights are always up to date to the latest market circumstances, so retail organizations no longer need to worry about keeping large amounts of data recent, saving internal costs.
Clappform supports retailers and commercial real estate developers by integrating different data sources and models powered by algorithms. Our solution is of interest to all companies invested in commercial real estate, such as real estate funds, shopping center owners, and retail companies. The platform helps businesses to identify the opportunities in all different shopping areas and to analyze the shopping behavior of their target groups by means of a huge database. Furthermore, potential competitor scan be mapped and the impact of new store introductions on total sales can be calculated.
Are you interested in our solution and do you want to know what we can do for your company? And what features of our platform can help you to optimize your performance?
Please feel free to contact us.
Whatever challenges you have, we are happy to help!
Do not hesitate to contact us or request a free demo.