Issue link: https://viewer.e-digitaledition.com/i/1518675
HOW RETAILERS CAN HARNESS AI FOR GROWTH BUSINESS INSIGHT: EMBRACING AI BY ALAN MIKLOFSKY & KIM MIKLOFSKY BAYNE O ur industry is one where growth is essential for survival. However, there are considerable roadblocks to achieving growth. • Consumer traffic has been declining for many, many years. • Online buying of footwear has been proven successful and pulls traffic from your business. • Expense growth in recent years, coupled with declining traffic count, has negatively impacted abilities to post adequate sales gains. Gains are occurring based on price inflation, but likely the number of units going out the door is declining for many shoe retailers. • Selling shoes online gave many independent retailers hope, but: - If you took on the tactic of selling shoes as a third-party retailer, it probably wasn't profitable and was a distraction. - Retailer websites for retailers haven't been successful for every small retailer. It depended largely on that retailer's ability to invest in technology deploying website enhancements, recruiting talent and executing well. • Now, the use of AI by "the big guys" threatens retailers seeking to maintain their market share. In the fast-moving world of footwear retail, embracing AI can seem daunting, but it doesn't have to be. is article will provide practical insights and guidance based on independent shoe retailer experiences, current industry trends and the emerging technologies. By focusing on how AI can enhance email marketing, improve website experiences, support personalized sales, and address cart abandonment, the article will offer insights into the AI technology possibilities for shoe retailers. SUPPORTING SALES Integrating AI into the operations of independent footwear retailers offers a dual advantage, enhancing both the in-store and e-commerce experiences: Identifying Sales Opportunities with AI In-Store: AI provides sales reps real-time suggestions for cross- selling and upselling based on the customer's current selections and browsing history. E-Commerce: AI algorithms analyze online shopping behaviors to recommend complementary products, boosting online basket sizes. footwearinsight.com Q1 April 8 2024 ~ Footwear Insight Business Report Quarterly 17 To enhance their profitability, independent shoe retailers must improve their operational efficiency. e utilization of today's emerging technologies should lead to a higher return on investment. e most successful retailers understand the importance of collecting and analyzing information in order to make better decisions in the future. ey already train their staff to effectively use accounting systems, merchandising management systems, email marketing programs, customer facing websites, and social media platforms. A wise owner/operator aims to increase efficiencies, control costs, and explore new markets and services.