The ghosts of retail results past and present are still haunting stores

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This article is brought to you by Retail Technology Review: The ghosts of retail results past and present are still haunting stores.

By Sachin Jangam, Partner for Retail at Infosys Consulting.

Despite starting a new year, the ghosts of retail results past and present are still haunting stores. While the UK economy grew by 0.1% in November due to seasonal shopping boosts and the World Cup, retail sales fell by 1% in December as consumers quickly revert back to their ‘normal’ shopping habits as the cost-of-living crisis continues.

Margins will continue to be squeezed in 2023, and while retailers can’t absorb all the inflationary costs, they can become more agile - this means utilising smart AI-driven tech.

Stores can use AI to help align consumer demand with data-driven store assortment to support availability and maximise profit per square foot. This alone, however, can’t keep stores afloat, they should also be focusing on their price match schemes to stay competitive. 

Supermarket discounters Aldi and Lidl are great examples of how these schemes can help stores soar to success, being named the cheapest supermarkets in December due to their ability to optimise costs where possible – appealing to the needs of their consumers. 

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