Top 7 Use Cases of AI in Retail Merchandising (with Real-World Results)

AI use cases in retail merchandising are changing the game for brands everywhere. Customers walk into the store or scroll a website expecting exactly what they want, when they want it, at a price that makes sense.

Get it wrong and they walk out empty-handed. Get it right and they become customers for life.

That's where smart AI use cases come into play. They help you make data-driven decisions instead of false presumptions.

Let's explore 7 ways AI is helping retailers succeed in today's competitive market.

AI in conversational commerce changes how customers interact with your brand. Chatbots and virtual assistants handle customer inquiries, guide product discovery, and complete transactions through natural conversations.

Real-world results: Walmart reduced stockouts by 30%, cut excess inventory by 20–25%, and reduced forecast errors through AI-powered demand forecasting.

AI use cases in demand forecasting take the assumptions out of inventory planning. It examines weather forecasts, social media buzz, local events, and even what your competitors are doing.

Real-world results: Walmart reduced stockouts by 30%, cut excess inventory by 20–25%, and reduced forecast errors through AI-powered demand forecasting.

Retail merchandising gets tricky when you're choosing which products to carry. AI takes the complexity out of assortment planning.

It studies how customers behave in your store. What they buy together. What they ignore. What makes them come back?

Then it suggests the perfect product mix for each location.

Real-world results: Target uses AI across more than 40% of SKUs, making billions of weekly SKU-level predictions to optimize assortment per store.

AI benefits extend far beyond inventory into how you arrange your store. Heat mapping shows where customers spend time. AI combines this data to create layouts that guide customers naturally through your space.

Real-world results: Walmart made digital twins for 1,700+ stores, using simulations to test display layouts and improve sales performance before investing in physical changes.

Smart design keeps customers engaged longer. Engaged customers spend more money.

Ready to see how AI can optimize your store layout? Schedule a free demo call to discover which AI use cases will work best for your retail business. Our experts will analyze your current setup and show you exactly how AI can improve your merchandising results.

AI use cases in pricing help you stay competitive without sacrificing profit margins.

Traditional pricing sets a price and sticks with it. AI adjusts prices based on what's happening right now.

Customer demand shifts. Competitors change their prices. Inventory levels fluctuate. Seasons change.

Real-world results: Retailers applying AI-based dynamic pricing report profit margin improvements of 5–10%, using real-time market and inventory signals.

AI benefits shine when it comes to personalization. Every customer gets an experience tailored just for them.

Their purchase history. How do they browse your website? What they look at but don't buy. When they typically shop.

AI weaves these details together to create individualized experiences.

Real-world results: Walmart enriched its 850 million product listings using GenAI 100× faster than manual edits to improve search and recommendation quality.

AI use cases in supply chain management cut costs and improve reliability: no more surprise delays or vendor issues.

Supplier performance history. Delivery patterns. Quality metrics. Risk indicators.

AI analyzes these factors to help you make smarter procurement decisions.

Real-world results: Walmart’s AI-powered supply chain analytics cut inventory costs by 12–15% and increased forecast accuracy by 15–20% with smarter vendor scoring and timing.

AI helps in retail merchandising move beyond just saving time. Whether you're improving inventory accuracy, personalizing customer experiences, or optimizing supplier relationships, AI provides you with the insights to make better decisions.

Willing to analyze AI use cases for your retail brand? Start with your biggest challenge. Focus on one area where better data could drive better results.

Book your free demo call today, and our AI experts will show you exactly how these solutions can improve your retail merchandising.