Using holistic, tailored retail intelligence software, our Retail AI technology unlocks critical advantages across the six vital components of the value chain. Establish competitive advantage with Retail AI by ensuring the availability of goods and services, examining customer data, and predicting future behavior.
5%–7%
uplift in sales
2pp–5pp
increase in operating profit margin
Up to 50%
boost in EBITDA
10%
gain in functional productivity
WHY RETAIL AI
Combining the power of traditional AI with generative AI, our Retail AI solutions include six teams working together to boost effectiveness, efficiency, and innovation.
Retail AI takes BCG’s deep retail strategy experience and unites it with BCG X’s Retail AI technology for up-to-the-minute business solutions, using a comprehensive AI execution model built on BCG’s 10/20/70 rule: 10% dedicated to creating a portfolio of high-impact use cases, ignited by an initial strategy that delivers value fast; 20% to building an integrated data and technology system; and 70% to transforming people and operating-model capabilities.
The solutions we develop are targeted to provide differential value, seamlessly integrating into your tech and data environment without unnecessary spending or replatforming. Retail AI accelerates progress by taking a business-first, algorithm-backed approach to support the scaling of these tools, demonstrated by six synergistic domains unlocking unprecedented value.
A leading European grocer used Retail AI to drive its future loyalty, promotion, and marketing transformation. BCG’s Retail AI software helped reconfigure the client’s mass and personalization campaigns by building a state-of-the-art analytics system, optimizing promotion effectiveness and delivering 140 bps in margin improvement, equivalent to $150 million.
An international tire company faced a complex assortment and geographical diversity problem, needing to stock the right tire, in the right store, at the right time. Using Retail AI, BCG helped the company’s retailers shift to a data-driven selling model, resulting in significant value creation across several dimensions while increasing sales by up to 12%.
BCG's Silvio Palumbo discusses AI's role in reshaping the marketing function, including how platforms like Fabriq can translate complex data into powerful customer insights.
Artificial intelligence can provide optimized solutions to three key retailer concerns: rising cost of goods, declining consumer spending, and supply chain volatility.
Overwhelming consumers with elaborate promotions, discounts, coupons, and loyalty rewards can weaken consumer loyalty, tarnish brand reputation, and suppress new revenue opportunities. Instead, retailers should adopt a streamlined, customer-centric approach.
Understanding every warehouse archetype, developing critical use cases, and improving existing ROI before the work begins are key to warehouse automation success.
There’s gold at the end of the personalization rainbow. To get it, retailers need to focus on the customer experience, technology, and operating models.
