At a recent industry event, I quipped that this is “the best of times and the worst of times” for retailers. Implicit in my comment — which was a paraphrase of the opening lines of A Tale of Two Cities, the Charles Dickens classic about the French Revolution — that the retail industry is undergoing a revolution of its own. Never mind the “retail apocalypse.” What retailers have begun to realize is that the demise of their businesses is not a foregone conclusion. This is a time for retailers to take action, not sit idly on the sidelines. In 2018, we saw more retailers take action by equipping themselves with the most important weapon for battle: customer strategy fueled by customer data science. Why is this happening? It could be that the ever-looming threat of Amazon, which has ventured boldly beyond e-Commerce and into physical spaces as well, with the steady spread of its 4-star stores throughout the U.S. It could also be the emergence of grocery discounters that are forcing retailers everywhere to rethink pricing and overall value propositions for customers. It could also be the example of retailers of all sizes to embrace the art and science of…

When it comes to pricing, Amazon is still king. The e-Commerce giant maintained its price leadership position on the broadest selection of popular items, averaging prices that were 13.4% lower than retailers carrying the same items in Q2 2018, according to a study from Profitero. Walmart had the most competitive…

Most retailers are already engaged in data analytics and predictive modeling. Today, using data to predict more successful outcomes — ultimately leading to increased sales — is not as mystifying a concept as it was even a year ago. But with a market being upended by an omnichannel imperative and consumer demand for instant gratification, how can e-Commerce retailers continuously and dynamically test out business models and strategies, refresh their questions and findings, and find out what works, particularly when it comes to pricing and promotions? Advances in AI have a role to play here. Machine learning is very powerful in point prediction, point estimates in price — the goal being to make sure you are dynamically pricing. And it’s very effective when pricing at speed. It can help improve recommendations based on a continuous learning loop, and it’s particularly applicable in price and promotion optimization.

Anytime I read the trades, glance at news headlines, or talk to other executives, AI seems to be the solution to all of our problems. Everyone is talking about AI. Emerging tech companies now have AI solutions at their forefront, but for companies looking to expand their e-Commerce reach globally, especially within emerging markets, AI is not the solution. When it comes to e-Commerce issues, specifically at the local level — frequent cart abandonment, low payment conversion rates due to network instability, consumers’ inability to pay with the right credit card — we can't wrap them in an AI blanket. These problems can only be solved through offering locally-relevant solutions that minimize friction at the checkout.

Marks & Spencer (M&S), the UK-based department store, has expanded its partnership with First Insight, a platform designed to help retailers make better product development and pricing decisions. M&S has been using First Insight’s predictive analytics to support design, buying and pricing decisions on categories including apparel, lingerie, footwear, accessories,…

I’ve been in the retail pricing industry for the past 40 years as an entrepreneur and tech innovator. I wanted to share with you where I think AI, Big Data and Algorithmic Retailing are headed in the next few years, and I’m going to make five predictions about the state of the industry and what it is going to look like in 2025. [To view the video of Ken’s predictions, go to: http://www.engage3.com/5-big-predictions-for-the-retail-industry/]

European grocery giants Tesco and Carrefour have partnered to “create a long-term strategic alliance” designed to improve product quality and choice and to lower prices for consumers. The agreement will allow both companies to strengthen their negotiations with their suppliers and create “significant opportunities” for them, according to a joint…