Currently, the market size for AI in the retail market is estimated to be worth about $9 billion and is expected to reach $40 billion by 2029. At GroceryTech 2024, a retail food industry event, CEOs and CIOs talked about their growing focus on AI, but also wondered how to implement an AI strategy that would immediately enhance customer experience and drive revenue growth.
With inventory accuracy in the US currently at just 63%, leading to an estimated $634.1 billion in annual losses for retailers, and janitorial turnover at 200%, there’s a pressing need for more effective solutions that add efficiency, intelligence, and reliability to operations.
Using robots to handle repetitive and time-consuming jobs, like cleaning and inventory tracking, frees up employees to focus on more meaningful, customer-centric work. This shift has been shown to boost employee satisfaction and improve the all around customer experience. In today’s competitive landscape, embracing automation is a practical step to stay ahead.
Additionally, to make the most of AI, retailers must prioritize implementing a strategy for collecting accurate and timely data. AI is only as good as the data it receives. That’s why some leading retailers are already turning to robotics to gather real-time data to get reliable information about their stores. This is the key to unlocking insights that lead to better revenue-generating decisions and actions.
The Current State and Future of Retail
In the years since the COVID-19 pandemic, retailers are facing a time of rapid digitalization. Over the last five years, the world has seen vast changes in shopper behavior, including expectations for advanced online and in-store shopping experiences, as well as changes to inventory and logistics. Retailers are struggling with the significant costs associated with inventory management which can count for 20-30% of total logistics costs.
Currently, half of retail tasks are already automated, and this figure is set to rapidly grow, with projections indicating that over 70% of tasks will have automated solutions by next year. Only by automating inventory management processes will retailers be able to meet rising consumer demands, to efficiently minimize cost and maximize profitability.
With an effective inventory management solution, retailers will be able to easily track out-of-stock items, price tag errors, promotional compliance issues, misplaced products, and stock counts. These findings are then shared with in-store teams to quickly fix the inventory issues.
Investing in inventory management solutions that add automation and intelligence to their current processes will help retailers avoid stockouts, reduce costs, and maintain customer satisfaction, or risk losing out to competitors who can deliver on these fronts.
Freeing up Floor Care Employees
One challenge all retailers, grocers, warehouses and big box stores encounter is the time consuming and costly nature of manual cleaning. So, how can the problem be solved? The answer lies with Autonomous Mobile Robots (AMRs). By automating this daily task, these cutting-edge solutions allow employees to dedicate their time and energy to more strategic and impactful activities. Many of the top retailers and grocers worldwide are successfully using them as such to combat labor struggles, like shortages and high-turnover, while also being able to improve their customer experience or NPS (Net Promoter Score).
Additionally, performance data metrics shared from floor care robots help teams optimize cleaning operations by providing implementable findings, including being able to clearly see what has and hasn’t been cleaned—something that can be challenging to uncover when managing multiple sites or relying on third-party groups.
Some floor care AMRs deliver these cleaning performance insights through a multitude of enterprise tools, including, mobile reports, automated emails, and web-based portals—all crucial for implementing effective change management, whether it’s across hundreds of locations or within the operations of a single store.
Floor care robots are built to prioritize the safety of others, constantly aware of their surroundings, and protect those around them. Industry leading autonomy platforms go through rigorous testing to meet important safety standards defined in UL 60730-1, CSA/ANSI C22.2 No. 336-17 and IEC 63327 to verify all functional safety performance requirements are met, helping prevent equipment damage and preventing accidents when they hit the floor in the real-world.
Improving Shelf Execution
AI solutions help to improve the customer experience and decision-making where it matters—at the shelf.
Manual processes—like barcode scanning and hand-counting—make it extremely challenging to adapt to changing business needs, shifting customer preferences, and issues with employee retention. AMRs with computer vision can scan shelves to help meticulously flag out-of-stock items. With prescriptive AI tools, these robots help retailers ensure the right product is on the right shelf at the right price, leading to an enhanced customer experience. Instead of spending time manually tracking products, employees can interact with customers, work on mobile orders, and receive notifications on when to address a shelf problem.
Retailers can also analyze the extensive dataset to spot trends, like seasonal demands and how store layouts affect sales. The key is accessing quick, accurate insights for fast decision-making. With these solutions, retailers can be more proactive, no longer needing to wait or draw conclusions from point-of-sale (POS) data that can only paint a partial picture when trying to determine factors impacting sales performance.
To stay competitive, retailers need to address inventory challenges head-on. Utilizing robots and AI-driven insights, they can fine-tune their inventory management, minimizing stockouts and capturing more sales opportunities. It’s clear, customer experience expectations are higher than ever.
For every out-of-stock item, retailers risk losing customer loyalty as shoppers may choose to go elsewhere. Retailers can mitigate this by using AI to increase inventory forecast accuracy by up to 35%, significantly reducing lost sales from stockouts.
By leveraging real-time sales and supply chain data, retailers can continuously improve the accuracy of their demand forecasts, allowing them to tailor product assortments and quantities more effectively to meet customer preferences.
Looking Ahead
The retail landscape is undergoing significant transformation driven by AMRs and AI-powered solutions. These advanced technologies are streamlining operations and enhancing productivity across the board, from logistics to customer interactions. By setting new standards for efficiency and accuracy, intelligent automation elevates the entire retail ecosystem. In an era of rapid change and uncertainty, embracing these innovative solutions will be crucial for retailers to maintain their competitive edge and foster lasting customer loyalty.
