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How To Prevent Grocery Inventory Distortion With Optimization

Apr 04, 2025 - forbes.com
Retailers are losing $1.7 trillion annually due to inventory distortion, with 67.5% of these losses from out-of-stocks and 32.5% from overstocks. This issue is particularly severe in grocery retail, where manual stock checks are inefficient and lead to lost sales and customer dissatisfaction. Real-time shelf intelligence, powered by AI and machine learning, offers a solution by providing store associates with actionable insights to restock shelves quickly, reducing stockouts and enhancing customer loyalty. This approach can lead to sales uplifts and improved inventory accuracy.

Transitioning to AI-powered shelf management can be done gradually, starting with mobile data capture on existing devices and scaling up to include fixed cameras and autonomous robots for continuous monitoring. This hybrid data capture approach allows retailers to improve shelf visibility and operational efficiency without significant upfront investment. By adopting these technologies, grocers can automate shelf management, reduce inefficiencies, and enhance customer experiences, ultimately unlocking revenue potential and ensuring long-term profitability.

Key takeaways:

  • Retailers lose $1.7 trillion annually due to inventory distortion, with 67.5% from out-of-stocks and 32.5% from overstocks.
  • AI-powered shelf intelligence provides real-time insights, enabling faster restocking and reducing out-of-stock scenarios.
  • A hybrid data capture approach using mobile devices, fixed cameras, and robots can improve inventory accuracy and operational efficiency.
  • Adopting AI-powered solutions can unlock revenue potential, improve fulfillment accuracy, and ensure long-term profitability for retailers.
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