Iceland is using AI to help it replenish stock levels(Image: Dinendra Haria/SOPA Images/LightRocket via Getty Images)
Supermarket chain Iceland is using AI to help automate when items get replenished in stores.
Iceland is launching a new partnership with Invent.ai to “keep shelves stocked” and “turn complex sales, supply and demand data into real-time operational actions”.
The system has launched across all product lines, after being initially tested on specific categories.
Invent.ai factors in seasonal demand, promotions, new product launches and one-off anomalies and is designed to optimise stock recommendations that reduce waste and maximise sales opportunities.
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The company says its software continuously learns from historical trends and adjusts for lost sales. Invent.ai operates in Turkey, the US and the UK.
Matt Downes, supply chain director at Iceland Foods, said: “AI is giving us the visibility and control we’ve never had before.
“We can now keep shelves consistently stocked with the products our customers want, reduce lost sales and improve the overall shopping experience across every store and distribution centre.”
Farid Mohsen, VP of Strategic Accounts at Invent.ai, said: “Our focus is helping retailers translate complex data into tangible business outcomes.
“By optimizing inventory and automating replenishment decisions, we enable retailers to improve efficiency, increase product availability and deliver a better experience for every customer, every day.”
Other retailers Invent.ai works with include Boots, Footasylum, Alo, Migros and Saudi Arabian food retailer Othaim.
It comes as fears have been raised that UK supermarkets could roll out “dynamic pricing” in stores.
Dynamic pricing is where businesses change prices in real-time based on demand and supply.
In a recent study, the Bank of England (BoE) said electronic shelf labels – which replace paper tags on shelves and can be used to update prices instantly – could be potentially be used for dynamic pricing in the future.
However, the British Retail Consortium – which represents over 200 major retailers – told the Mirror there are no plans for supermarkets to introduce dynamic pricing.
Andrew Opie, Director of Food & Sustainability at the BRC, said: “Supermarkets do not use, and have no plan to use, dynamic or surge pricing in their stores.
“Digital pricing displays allow retailers to update and check thousands of prices in an effective way, so they can continue to offer great value for customers.”
Some of the major UK supermarkets which are using electronic shelf labels include Co-op, Morrisons, and Waitrose.