06 Jul, 2017

Retailers Boost Sales With Artificial Intelligence


Retailers are using digital transformation to create unique shopping experiences in order to boost in-store purchases.

Stores are integrating artificial intelligence to keep up with the online shopping competition that continues to threaten the retail market.

Artificial Intelligence makes stores innovative and digitally driven by providing a variety of tools: 

“Nudging” Merchandise

Information about merchandise in retail is based on automotive data driven “nudges” which are used to alert retailers about different opportunities regarding their products, audience, and location.  

“There’s a growing trend today in big data and merchandising based on big data-driven “nudges,” which are critical for driving and improving merchandise decisions for retailers.” according to TotalRetail. 

Nudges help retailers explore:

Products going out of stock

Data can provide retailers clues about what products are out of stock in stores, which makes for an effective and efficient way to organize inventory.


Nudges can also show what products are the most popular purchases among customers, which allows for retailers to adjust their shelves to match what the customer wants.

Competitive pricing

Comparing what other competitors are pricing products on the market puts retailers in a position to be ahead of the competition by adjusting pricing of products when need be. 


Stores can use data to find out what location works best for them, depending on where their targeted audience is located.

By understanding where to physically put stores, retailers have the opportunity to target their specific customer’s geographic location and promote in-store purchasing.

Online marketing

Nudges connect stores to Algorithms process that show which products have been most popular online, which can nudge retailers to spend the proper amount of money on particular products through marketing.

Machine Learning and the Customer

Artificial Intelligence provides tools that give retailers insight into customer’s needs by tracking shopping behaviors.

This is done through using omnichannel retailing, by collecting data behavior from customers done through machine learning.

“The future of retail technology lies in solutions that are powered by machine learning, which can provide fast and intelligent automation as well as dynamic scalability.” According to VB.

Understanding and interpreting the data that is found regarding customers’ shopping behaviors can provide retailers the insight needed to see what their customers want, and what they find the most popular.

Retailers then have the ability adjust products, designs and shopping experiences to meet the needs of the unique customer base through the feature of customer-driven data.

In-Store Visual Merchandising

In-store shopping experiences are intensified by visual merchandising through creating a connection between customers and brands.

Visual merchandising draws customers toward a specific product, by grabbing their attention and leading them into a store for a purchase.

This is usually done through a window display, which has the ability to be as interactive as possible.

Now, with the integration of artificial intelligence in retail, visual merchandising is more innovative and digitally driven.

Emotion tracking is becoming widely used among retailers.

The Emotion API beta interprets results found through images and video, indicating if a person is sad, happy, surprised, angry, fearful or contempt.

“A race is on to work out how best to collect and use emotions data, be it to improve packaging, displays, music, or the content and timing of sales pitchessays Rana June, chief executive of a firm in New York called Lightwave.” According to The Economist 

Tracking customer’s emotions combines psychology and artificial intelligence in order to gauge how the targetted audience feels about certain products and displays.

Retailers can leverage this tool to gain first-hand knowledge about how customers feel while engaging in a particular brand or product and adjust their strategies to match the needs of the customer.

What’s next?

The fact that retailers are integrating more technology in stores proves that they are putting efforts in to be ahead of the digital transformation wave, seeking to stay above of the online shopping competition.

Experts say that artificial intelligence is only going to advance further, which opens up more opportunities for companies to engage with customers through technology.

This could potentially change the online shopping landscape, and keep in-store purchasing popular among customers.

It will be interesting to see what other digital tools retailers will use in order to stay relevant and ahead of the competition in the coming months.


The retail industry is changing rapidly, with digital transformation emerging on the scene. Artificial intelligence is hitting retail stores and transforming how companies interact with customers. By integrating digitally driven tools, customer engagement is increased and brand awareness is effectively communicated. It is vital for business leaders to understand how artificial intelligence can further position a business to be on top of the competition and ahead of the digital wave.

In order to be on board with digital transformation in retail, you must understand the digital transformational tools that are being used such as machine learning, virtual reality, augmented reality, artificial intelligence, and emotion tracking. By understanding and adapting to these tools, retail CDOs and CMOs can learn how to effectively grab an audience as well as to compete effectively with mobile, online shopping.

Creating a unique shopping experience for the customer is the end goal for retail business leaders, and this can only be achieved by adapting to new technology.

North America’s most prominent digital, marketing, technology, and business leaders from the Retail Industry are coming together October 19-20, 2017 at the Grand America Hotel in Salt Lake City, UT, for the Digital Retail Transformation Assembly. By working with the industry, we have put together an event to challenge attendees and anticipate the highly complex digital retail marketing environment that will develop over the next few years.

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