2019 is a transitional year for US retail. Market turbulence and an ever-changing consumer landscape mean that retailers need to be more proactive and forward-thinking than ever in order to drive growth and success. This means being able to predict and adjust to market disruptions and changing trends ahead of time, to avoid following in the footsteps of those high-profile retail bankruptcies we saw last year in the States.
In recent years, the US has seen a significant shift in retail strategies, from growth via new stores to growth via sizeable investments in all areas of the business. This includes the introduction of exciting new technologies, with artificial intelligence (AI) now being employed (or on the radar of) an ever-increasing number of retail businesses.
Retailers are utilizing AI to finally take advantage of the vast amounts of valuable data they have at their disposal, driving a competitive edge in an often-turbulent sector.
However, it's not just a case of 'doing AI' – retailers need to be 'doing AI well.' They need to be thinking big, and leveraging data from across their entire organization. A connected approach is the key to driving optimization across the whole business, rather than in individual silos or individual business systems.
While off-the-shelf AI point solutions are becoming more commonplace, the enablement of business-wide AI is what's separating the best from the rest in today's retail market.
With consumers becoming more powerful and expecting more from retailers than ever before, and with mounting pressure on supply chains and operations teams across the sector, retailers need to be able to implement AI quickly and efficiently across the entire enterprise to keep on winning. By leveraging business-wide data to full effect, US retailers are able to drive optimization across the entire value chain. This leads to better revenue growth, increased profits, and reduced costs with an AI strategy that is intrinsically linked to its fundamental business objectives.
There are some amazing examples of retail growth in the US right now, and this growth is being powered by AI. In fact, the top ten fastest-growing American retail businesses are all using AI and data to stay ahead of the competition. Our own research has shown us that these 'Growth Stars' are growing at a phenomenal rate by implementing AI technology – 5.5x faster than the industry average. If the rest of the sector implemented AI to achieve these levels of growth, it would equate to approximately $273bn in additional profit to the industry.
At Peak, we've decided to dig a little deeper into the impact AI is having on the American retail sector, compiling our own industry research report which looks at how these Growth Stars are utilizing the technology to their advantage. You can download it here.
To find out more about what AI can do for US retail, visit our designated US retail page: www.peak.ai/retail-us 🇺🇸