Survey Finds Retailers Face Major Business Risks Without AI and Automation

New research from Blue Yonder, in association with Microsoft, has revealed that brick and mortar retailers are missing out on the opportunity to improve customer experience and compete with online retailers by failing to automate their pricing and replenishment processes. According to the “Blue Yonder Smart Report,” 96 percent of retailers rely on manual processes for their pricing and replenishment strategies, despite widespread recognition of the benefits that greater automation could bring.

Blue Yonder is a provider of AI and ML solutions for the retail space.

According to the survey, 53 percent of retailers admit that there is room for improvement in their replenishment process, while 54 percent say the same for their pricing strategy. Nearly 60 percent of retailers believe that automated replenishment would generate a better customer experience and 56 percent stating that automated pricing would result in improved profits.

“Online retailers have been able to make small and regular adjustments to their pricing for years, instantly reacting to consumer demand and trends to keep their prices optimized and maximize sales, while brick and mortar retailers have been trying to manage with manually-operated, outdated and static pricing strategies,” said Blue Yonder CEO Uwe Weiss. “However, with automated pricing solutions, retailers finally have the flexibility and agility to optimize their prices in their physical estate, delivering a better experience for customers and enabling them to compete more effectively with their online rivals.”

In September, the company surveyed 200 brick and mortar retailers from the UK, Germany, and the U.S. to understand how they are leveraging the latest technologies to achieve a competitive advantage and level the playing field with more agile online retailers.

Channel Impact^®
Cloud technologies and AI can be powerful tools for helping clients in the retail space leverage automation in their pricing and replenishment approaches, thereby making them more efficient. AI solutions can analyze vast quantities of data to completely automate these processes and eliminate the burden of manual intervention, enabling retailers to devote more of their resources to improving the customer experience.