Anlan is Reshaping the Global Beauty Tech Industry with AI Supply Chain

As a pioneering force of beauty instruments, Anlan has always adhered to the concept of “technology empowers beauty” and has remained committed to bringing efficient, safe and intelligent beauty solutions to global consumers since 2018. With tech advancements and rapid changes in the market, every brand is constantly exploring and innovating, striving to stand out in the fierce market competition—and Anlan chose 7thonline to champion their stance.

Backed by excellent product quality and innovative marketing strategies, Anlan has steadily ranked as the top beauty instrument provider in Japan, South Korea, North America and other regions; this achievement is inseparable from the trust and companionship of every consumer and partner who supports Anlan. Anlan is leading the development trend of global beauty technology with the power of science and technology.

anlan partners with 7thonline

Anlan’s unremitting exploration of science and technology

In the journey of globalization, Anlan realized that efficient supply chain management is key for the sustainable development of brands. With the increasing complexity and changeability of market demand and the rapid iteration of consumer preferences, the traditional supply chain management model has become difficult to meet requirements of flexibility, accuracy and agility. In order to maintain a leading position in the fierce market competition, Anlan decided to carry out a strategic upgrade, utilizing 7thonline’s supply chain decision-making system to jointly launch a new era of intelligent supply chain.

“We believe that through cooperation with 7thonline, we will be able to optimize the supply chain process, improve operational efficiency and reduce costs, so as to provide consumers with better and more efficient products and services. At the same time, it will also provide a strong guarantee for our global layout, so that we can respond to global market needs faster and accelerate business expansion in more countries and regions.” Anlan states, regarding the partnership.

Anlan chose 7thonline for the platform’s ability to run rich data reports, providing a strong framework for strategic decision-making through an in-depth understanding of market trends, consumer behavior and supply chain performance. Anlan also highlighted 7thonline’s professional technical team and after-sales service as a major contribution to their decision, acknowledging the importance of all-round technical support and the ability to communicate needs in-depth.

7thonline has been on the frontlines of AI-based inventory management and supply chain optimization for 25+ years—serving internationally renowned brands such as Patagonia, Calvin Klein, Birkenstock and beyond. Powered with advanced industry-specific algorithms, refined through continuous client collaboration, the end-to-end solution breaks down information silos, fosters cross-functional collaboration and empowers real-time decision making for retailers and wholesalers. 

This partnership between Anlan and 7thonline continues to signal the importance of data visibility and demand insights for leading retailers. Using machine learning for big data analysis and cutting-edge AI technology, 7thonline will enable Anlan to accurately predict sales trends, optimize inventory productivity and reduce operational inefficiencies. 

We are proud to welcome Anlan!

7thonline is a leading provider of retail assortment management applications, enabling more effective planning, demand forecasting and inventory optimization. To learn more, email us at info@7thonline.com or book a demo with our team.

AI-Powered Assortment Planning & Size Profiling for the Ozempic Generation

Accurate sizing and assortment planning are critical to both customer satisfaction and overall profitability, especially for retailers in apparel and footwear. When sizing misses the mark, it leads to excess inventory, higher return rates and lost sales. And as weight-loss drugs continue to gain popularity, size profiling has to become more dynamic to keep up with shifting trends. By harnessing data on shopper behavior, regional fit trends and inventory performance, AI-powered tools enable smarter, more localized assortment planning that boost sell-through, reduce returns and meet customers where they are—ensuring the right products, in the right sizes, reach the right customers at the right time.

Rise of GLP-1 & The Impact on Assortment Planning

Style, color, size. 

Assortment planners typically determine their mix 6-9 months in advance. And with lead times in production and planning, there’s little room for error—products made months in advance that don’t align with actual demand can tie up resources and margin for an entire season.

The rise of weight-loss medications is forcing retailers and wholesalers to be more agile and adjust their assortment planning to match the shift in size trends. While the long-term effect of weight-loss medications are yet to be seen, the apparel industry is already having to adapt their size curves as popularity for drugs like Ozempic and Wegovy soars. With 6% of the American population using GLP-1 drugs to lose weight, brands are starting to see smaller sizes selling more.

“Brands typically adjust (size) algorithms once a year. But now as more people use GLP-1 drugs, brands are updating these models more often than they have before to meet the need for small sizes.” – Kelly Pedersen, PwC retail leader.

Retailers who specialize in clothing or footwear know that accurate sizing is critical to customer satisfaction and profitability. AI can help improve size profiles by analyzing customer purchase patterns, returns data and even social media feedback in real-time to identify the most accurate sizing for different customer segments and simplify assortment planning. 

Enhancing Size Curves and Profiling with AI

AI enhances assortment planning by analyzing sales at the most granular level: style, color, size, by store, by week to recommend optimal buy. Instead of traditional, static clustering, AI systems such as 7thonline can optimize size profiling by store location to ensure demand is met. When AI fine-tunes sizing strategies, retailers benefit from higher profit margins as they avoid overstocking unpopular sizes while ensuring they have enough of the right sizes. 

Proactively react to shifting consumer behavior and needs with data-driven AI-based insights. By leveraging AI to its full potential, retail businesses can unlock efficiencies, reduce waste and meet consumer demand in a more personalized and profitable way. The future of retail is demand-based and data-driven—and those who embrace AI as an integral part of their operations will be the ones to reap the rewards in the rapidly evolving retail landscape.

7thonline is a leading provider of cross-channel assortment management solutions, including demand forecasting and inventory optimization for leading retailers and wholesalers, offering complete demand visibility and planning capabilities for wholesale, retail and ecommerce. 

To learn more about how AI can help make assortment planning more agile and dynamic, book a demo or email us at info@7thonline.com. 

eCommerce Inventory Management and Planning Software

Driving ecommerce planning and fueling cart conversions—ecommerce inventory management and planning software makes it possible to amplify ecommerce sales through data-driven and demand-based insights. 7thonline’s AI-powered ecommerce suite of solutions not only empowers pure-play retail and DTC brands online to make smarter inventory decisions that maximize profit, but also track promotional performance and ROAS on a single platform.

person shopping for cargo pants online

Inventory Management Software for eCommerce

As more and more retailers continue to expand their presence (online and offline), the more critical it is to develop strategies that cater to the nuances of differing channels—optimizing and maximizing profitability. Built specifically for ecommerce, 7thonline enables brands online to accurately plan, analyze and forecast demand based on web-specific metrics. 

The suite includes:

  • Merchandise Planning
  • Assortment Planning
  • Media Buying & Offer Planning
  • Open-to-Buy
  • Embedded Forecasting & Reporting

Instead of treating ecommerce like another brick-and-mortar location, our algorithms analyze web layout strategies and media buys, to determine their impact on sales in order to recommend buys and product placement. Streamline digital merchandise planning and optimize media buying decisions. 

eCommerce Planning and Media Buying in the 4th Dimension

7thonline’s AI-based ecommerce solutions inform end-to-end processes: planning, merchandising, reporting and promoting. The system analyzes data daily, based on all customer affinities: product, time, location and even media consumption (the why). This 4th dimension to the retail cube is a powerful approach to fully understand consumer behavior and make dynamic decisions on what promotions and placements are contributing to success.

Download our eCommerce Merchandising whitepaper to discover critical success factors for ecommerce merchandising and multi-channel planning: https://www.7thonline.com/ecommerce-merchandising-success-whitepaper

7thonline is a leading provider of ecommerce inventory planning and forecasting solutions, enabling more effective planning, demand forecasting and inventory optimization for leading retailers online. With embedded AI-powered business intelligence and rich analytics, the solution offers complete demand visibility and planning capabilities at the most granular level: style, color, size, media, day. To learn more about our ecommerce suite, book a demo or email us at info@7thonline.com.

Retail Planning Software: Optimize Assortment Planning and Demand-Driven Inventory With AI

The data is in: demand is high but sentiment is not. Up 1.4%, consumer spending was stronger than expected in March, reported the Commerce Department. However, consumer confidence is still slipping, especially with uncertainty around the tariffs. In a world where retail sales data is revealing mixed signals, strategic inventory assortment planning is paramount. 

Planning for Inventory Productivity and Sell-Through Rates

Retail assortment planning is a key part of merchandising strategy to determine the optimal mix of products to offer, in what quantities, when and where—to maximize sales and customer satisfaction. With a weak sentiment index, assortment planning is critical to ensure each SKU earns its place on the shelf. 

Inventory productivity drives profitability in retail. 

As shoppers become more selective with their spending, retailers must curate more targeted assortments that align with shifting consumer priorities, minimize excess inventory and maximize sell-through. 

Utilizing AI-powered planning solutions, retailers are able to use real-time sales data and historical trends to forecast demand, ensuring that stores are neither overstocked nor understocked, and enhance sell-through rates. With more accurate demand forecasting, inventory levels are more closely aligned with actual sales trends, reducing the likelihood of markdowns and unsold goods that eat into profit margins.

Retail Planning for Demand: Software, Techniques and Models

A demand-focused, data-driven approach allows businesses to stay agile, plan with precision and protect margins. A delicate balance between art and science, assortment planning not only anticipates trendy and relevant products but also relies on data to analyze and forecast demand. Through demand planning software, powered by AI, retail is able to do this seamlessly—leveraging analytics for precision while relying on merchant intuition and creativity to connect with shoppers and give them what they want. 

Instead of a traditional, static clustering (or “the wedge”) approach, demand planning software helps maximize selling potential with granular insights that help retailers curate a localized mix. 7thonline’s demand planning technique goes as far as the style, color, size, by store, by week—localizing assortments based on the store’s propensity to sell based on product attribute performance. The system will recommend buy based on demand targets and even use proprietary demand planning models to anticipate sales for new and seasonal products. 

7thonline is a leading provider of cross-channel assortment planning and management solutions, enabling more effective planning, demand forecasting and inventory optimization for leading retailers and wholesalers. With embedded business intelligence and rich analytics, the company’s solutions offer complete demand visibility and planning capabilities for wholesale, retail and ecommerce. 

To learn more about how AI can help brands and retailers drive revenue amid weak consumer sentiment through smarter assortment planning, book a demo or email us at info@7thonline.com. 

The Role of AI in Allocation: Right Product, Right Place, Right Time

For retailers that want to get ahead of their competitors, artificial intelligence will play a critical role going forward. Retailers globally lost an astonishing $1.77 trillion in 2023 due to poor inventory management according to IHL. However, AI stands ready to change that—if implemented correctly.

AI is already playing a major role in the retail industry, and its role will only increase over time. In a report entitled “Market Guide for Retail Assortment Management Applications: Short Life Cycle Products,” Gartner predicted that the top 10 retailers globally will tap into AI “to facilitate prescriptive product recommendations, transactions and forward deployment of inventory” by the end of 2025.

Smart allocation will be one area of particular importance for retailers, as getting the right products to the right place at the right time is critical for reducing or eliminating stockouts and price cuts caused by bloated inventory at a particular location.

How AI optimizes product allocation

Traditionally, product allocation is supply-driven; products are allocated based on static, predetermined rules set by internal teams: square footage of stores, sales volume, week of supply, etc. With artificial intelligence, allocation becomes dynamic. 

AI can drill down deep into the data to analyze and generate recommendations for site-specific assortments. Driven by demand drivers such as propensity to sell, AI systems can determine the best style and size mix within each category for each location and channel, and determine a sales index for individual products by analyzing historical sales data. 

To optimize product allocation, AI looks at the retailer’s sales history, including inventory levels and stockouts, to determine where that previous allocation strategy went wrong and then correct it. Effective allocation requires analysis of multiple data sets from each location, and only AI is capable of providing accurate analysis of all these data sets simultaneously.

In short, here’s how AI does all of this. The technology classifies and categorizes information based on visual, numerical or textual data. It then analyzes and modifies the retailer’s strategies, plans and allocations based on real-time data. It automatically generates analysis that makes faster response times possible and can help retailers retrieve relevant information quickly.

Real-time decision making

The advent of AI is empowering smart, real-time decision making across channels and locations. Before AI, retailers relied on spreadsheets and manual allocation methods that were time-consuming and error-prone—this is still common today.

Introducing AI into retail workflows transforms the planning process, making it effective and dynamic. With AI, retailers are armed with real-time analysis and smart recommendations that improve regional and store-level distributions; the industry-specific algorithms continually monitor real-time sales data to provide the most optimal recommendations.

Through this continuous improvement, AI can identify opportunity gaps in product ranges at each location, leading to additional sales—if those gaps can be filled. Without real-time understanding of inventory levels, retailers can refill stock right when it’s needed at the locations that require it.

Adapting to current conditions

Retailers face potential problems at both ends of the sales spectrum. On one side, they must deal with shifting consumer behaviors, but at the other end, they face the potential for supply chain disruptions that could prevent them from addressing those shifting behaviors.

However, AI is capable of continual monitoring and measuring actual performance against the plans created, creating a dynamic feedback loop. This feedback loop enables retailers to map their supply chains and connect parts of their business that were previously disconnected.

McKinsey estimates that retailers which implement technology to capture the variability of demand via forecasting can better predict customer behaviors, resulting in an average of a 3% to 4% increase in revenue. Through machine learning, as more data is collected and analyzed, these plans will become more and more accurate.

How to use AI to make predictions

According to McKinsey, autonomous supply chain planning can boost revenue by 4%, slash inventory by 20% and cut supply chain costs by 10%; AI enables retailers to continue meeting customer demand while reducing inventory (and its associated costs) because they can accurately predict demand across sizes, colors, locations and more.

McKinsey has found that companies have more success with implementing the technology when supported by four essential elements.

The first involves rewiring the organization by deploying real-time allocation dashboards, setting up a cross-functional supply chain organization and increasing the speed of critical decision making.

Secondly, McKinsey advises retailers to streamline their processes by enabling segmented business processes, promoting closed-loop planning and supporting “what-if” predictive scenario planning for allocation. Additionally, retailers should establish standard operating procedures to manage exceptions to typical situations.

Thirdly, McKinsey recommends digitizing the supply chain by leveraging scalable technologies and tools. Retailers are also advised to enable advanced analytics and AI-based planning solutions, integrate their technology across their supply chain and scale their technology to multiple regions and business units.

Finally, retailers should foster an accountability mindset and empower employees to make decisions based on the data and analysis received. Implementing AI also requires building talent with deep machine-learning capabilities—or outsourcing it.

Correct implementation of AI

When implemented correctly, AI is game-changing for retailers, but the key here is “correctly.” To achieve real value from AI, retailers need to move beyond buzzwords and embed AI into every step of their daily processes—rather than amplifying individual modules that are segregated from the rest of the system. 

For example, as a retailer, you need your open-to-buy system to communicate with your demand-forecasting tool, but AIs that doesn’t tap into all data sets simultaneously can’t provide accurate analysis or helpful information. Real AI should be able to provide robust analysis of multiple datasets without a data scientist’s expertise. 

Read the original article on The AI Journal here.

To learn more about our AI-native inventory management and demand planning solutions for retailers and wholesalers, email us at info@7thonline.com or book a demo with our team.

The Green Shelf: Streamline Stock & Sustainability in Retail

Sustainability is becoming increasingly important in every sector, including fashion and apparel; a traditionally high-waste sector, the industry is embracing sustainability through innovative practices—starting at the supply chain. These developments reflect a broader industry shift toward eco-friendly materials, circular fashion models and technological innovations aimed at reducing waste.​

Inventory management tools play a key role in promoting sustainable manufacturing and reducing environmental footprints in retail. Through AI-powered solutions, retailers and wholesalers are able to leverage predictive analytics and make decisions that optimize stock levels, minimize overproduction and efficiently plan supply chain distribution.

Leveraging technological innovations, businesses are able to amplify sustainability efforts by:

  • Reducing excess inventory and carbon emissions
  • Optimizing raw material usage
  • Decreasing energy consumption 
  • Minimizing landfill waste and pollution

Rather than rely on large-scale manufacturing runs that lead to excess inventory, retailers and wholesalers can use innovative tech solutions to accurately forecast demand and produce in quantities that align with consumer needs. Aligning manufacturing and production processes with sales and demand combats waste generation, demonstrating environmental sustainability. Efficient planning also minimizes carbon emissions through fewer last-minute shipments and lower energy consumption for both shipping and warehousing. By using inventory management solutions that empower efficient planning and stock decision-making, the fashion industry is able to decrease energy consumption, raw material usage and waste in both production and transportation. 

7thonline offers advanced analytics and demand forecasting tools to help retailers and wholesalers prevent overproduction and overstocking. Ultimately, leveraging the system’s capabilities enables a more efficient and sustainable supply chain, contributing to lower carbon emissions and a smaller environmental footprint. 7thonline is continuously innovating features and functionality to streamline operations and make retail processes more efficient.

To learn more about how AI-powered inventory management solutions can help the fashion industry optimize their stock and improve sustainability efforts, email us at info@7thonline.com or book a demo.

Omnichannel Solutions: The Backbone of Retail Success

Shopping behaviors are always evolving and the retail industry is always adapting. But fulfilling consumer demand takes on a whole new meaning as the lines between channels continue to blur. With more and more retailers adopting omnichannel strategies, optimizing and streamlining operations becomes imperative in order to meet consumer expectations. Enter: omnichannel solutions empowering retailers to make integrated merchandising decisions.

Optimize Omnichannel Retail Operations 

Here are three well-known trends in retail: ecommerce is rising, brick-and-mortar isn’t going anywhere and omnichannel is everywhere.

The driving force behind retail and retail trends—Gen Zers are the main character. As the latest (and largest) cohort of consumers are coming into their own financially, brands are doing their best to meet them wherever they are: online, offline, multi-retailers, mobile apps, etc. Retailers everywhere are focused on creating seamless (and blended) omnichannel experiences. DTC is expanding into digital. Ecomm is opening up shop. In order to optimize operations and achieve omnichannel success, retailers must be able to make integrated inventory decisions based on data across channels.

Face the omnichannel challenge with software that unifies data and processes from different channels. Listen in as industry expert, Max Ma, dives into how understanding consumer demand drives omnichannel success on the My Future Business podcast.

Leveraging AI and Omnichannel Commerce Solutions 

Eliminate data silos and gain complete control over your omnichannel. Through powerful AI capabilities and comprehensive visibility into supply and demand, retail professionals are able to align merchandising strategies with consumer demand and amplify profitability using omnichannel commerce solutions. 

For retail companies operating on both wholesale and direct-to-consumer channels, 7thonline’s Corporate Demand Planning solution works harmoniously to support omnichannel strategy. Built for multichannel application, 7thonline is uniquely positioned to provide a holistic view of global demand, leveraging advanced AI and robust data from wholesale and retail channels. Through artificial intelligence, 7thonline is able to analyze historical sales and external data points to obtain trend information and forecast future demand. Accurate forecasting empowers retail professionals to identify profit opportunities and make smarter inventory decisions from production to allocation. With robust analytics and granular insights, retailers are able to match inventory to consumer demand down to the style, color and size. The power of AI in retail lies in its ability to drive profitability by empowering data-driven decisions that reduce costs, increase margins, and maximize sell-through.

7thonline is a leading provider of omnichannel commerce solutions, enabling more effective planning, demand forecasting and inventory optimization for leading retailers and wholesalers. With embedded business intelligence and rich analytics, the company’s solutions offer complete demand visibility and planning capabilities for wholesale, retail and ecommerce. To learn more, email us at info@7thonline.com or book a demo with our team.

Navigating the Upcoming Tariffs: Mitigating Retail Risk

As tariffs loom on the horizon, the retail industry faces increasing challenges, forcing executives to prepare for supply chain disruptions and navigate declining customer sentiment. As pressures increase, retailers are grappling with higher import costs, which can lead to increased prices for consumers, narrower profit margins and potential shifts in purchasing behavior. To mitigate these risks, retail leaders need to adopt a proactive approach. 

Latest Tariff Developments: All Eyes on April 2nd

According to a PWC report, tariffs (including the reciprocal tariffs expected to take effect April 2nd) could impact the consumer products sector by up to $134B, roughly five times the current tariff amount of $27B—and the apparel industry is taking the biggest hit. 

But tariff structures are often subject to change and it’s no different this time around. Retail leaders must stay informed about potential shifts in trade policies and tariffs to stay ahead of the curve and react swiftly to minimize their impact. Understanding the landscape and making informed decisions will be key to sustaining growth in the face of these challenges. By staying adaptable and leveraging supply chain technology, retail leaders can navigate the turbulence of rising tariffs and minimize the impact on their bottom lines. 

Preserve Margins, Embrace Technology

Investing in advanced supply chain and inventory management technologies can help retailers track and adjust quickly to changing tariffs, preserving margins and ensuring more efficient operations to offset tariff-induced price hikes. AI-powered forecasting tools can help predict shifts in demand and adjust purchase orders accordingly, minimizing waste and cutting costs.  These technologies help streamline operations, improve efficiency and reduce inventory risks.

Predictive AI is a powerful tool for inventory productivity, and empower retail leaders to get ahead of inventory management issues. AI-powered inventory management systems enable retailers to forecast demand with greater accuracy by analyzing historical sales data, seasonal trends and market conditions. With tariffs and supply chain disruptions affecting product availability and pricing, having a more accurate forecast helps retailers prepare for changes in demand before they become a problem. By optimizing stock levels based on these predictions, retailers can avoid overstocking or stockouts that significantly harm profitability—which is crucial when costs are rising. 

Retailers can also use inventory management solutions to identify potential bottlenecks in the supply chain, monitor lead times and track goods across multiple touchpoints. Real-time inventory tracking allows retailers to get a clear picture of stock levels, shipments and sales across all channels. This is especially important during periods of uncertainty, such as when tariffs are imposed or shipping delays occur. This level of visibility enables quick decision-making, whether it’s reordering products from alternative suppliers or shifting inventory from overstocked locations to those facing higher demand.

To Negotiate or Diversify: Supplier Relationships and Sourcing Management

Many retail leaders are leaning on positive relationships with vendors amid tariff uncertainties, pushing for price cuts, negotiating better terms or exploring long-term contracts that can offer more stability and flexibility. Others are looking elsewhere, reducing supplier dependency by diversifying sourcing to mitigate tariff impact. 

“With a sourcing organization that’s decades old, our team has a lot of experience in navigating this type of volatility. They’re monitoring the situation carefully and we expect to successfully navigate through any changes, just like we have in the past. However, given near-term uncertainty, we’ll be looking to maintain a larger-than-normal cushion on the balance sheet.” – Jim Lee, CFO Target

Inventory management solutions enable retailers to manage supplier relationships more effectively, saving costs by streamlining operations. Determine the most efficient sources of products by tracking lead times, costs and shipment schedules from multiple suppliers; if one supplier faces an increase in tariffs, retailers can switch to alternative suppliers who offer more favorable pricing.

Customer Sentiment and Brand Loyalty

While the US economy has not yet experienced a serious slowdown, signs of consumer stress have begun to emerge; it’s no secret that shoppers are worried about the price hikes associated with tariffs. Reuters reported the US consumer confidence index has plummeted to a four-year low in March. With consumers being more selective about where they spend their hard-earned dollars, it’s more important than ever to optimize the customer experience and preserve brand loyalty. 

Inventory management solutions ensure retailers are stocked with high-demand products and can adapt to shifting consumer behavior. Whether it’s fulfilling online orders efficiently or making sure physical stores have adequate inventory, retail assortment management solutions ensure retailers are able to meet customers where they are with the products they want; these systems reduce the risk of stockouts, improving customer satisfaction and loyalty by ensuring that popular products remain available. Through predictive AI and demand forecasting, retailers are able to anticipate how consumers respond to price changes and proactively offer personalized promotions to foster loyalty.

“Tariffs are something we’ve managed for many years, we’ll just continue to manage that. We can’t predict what will happen in the future, but we can manage it really well. And we’re wired to try and save people money. So that will be our ultimate goal.” – Doug McMillon, CEO Walmart

Adapting to Retail Tariff Pressures

As retailers navigate the immediate impacts of tariffs on supply and demand, AI-driven inventory management solutions provide a crucial edge in preserving margins, managing supplier relations and enhancing consumer experiences. By using technology to streamline operations and gain real-time insights, retail leaders can make dynamic, informed decisions that address challenges posed by rising tariffs, supply chain disruptions and fluctuating consumer demand. In the face of uncertainty, technology is not just a tool, it’s a vital strategy for resilience and competitiveness in the retail industry.

7thonline has been providing industry-specific supply chain and inventory management solutions to the global retail industry since 1999, with powerful predictive AI capabilities to navigate fluctuating consumer demand. To learn more about our supply chain technology and inventory management solutions, email us at info@7thonline.com or book a demo with our team.

Retail Trends and Insights from Industry Leaders on What’s Next in 2025

Now is the perfect time to reconnect and see what’s trending for the year ahead within the retail industry. In conversations with industry leaders at various tradeshows and meetings, five key shifts have emerged—especially in the retail tech world. These tech trends are shaping the future of retail, driven by the need for greater efficiency and maximizing the impact of data. Here are the top retail trends leading retailers are keeping an eye on in 2025:

rack of clothes

  1. Personalize Your Tech Stack

Every retailer needs technology that aligns with their unique business model. Success in retail depends on tailored solutions—there is no one-size-fits-all solution in retail technology. Individuality is why businesses continue to succeed, each carving out its place in the industry with distinction. The tech used and how it’s implemented must align with these differences. Whether a business is a small regional retailer, a global brand, a family-run operation or a publicly-traded company, technology must serve the specific needs of each business. Success lies in understanding those nuances, and tailoring your tech stack accordingly. 

  1. Trending Beyond Manual Inventory Management

In retail, success hinges on precise seasonality and allocation, making it clear that manual processes can no longer keep up. The need for technology that balances both replenishment and allocation has never been more critical. Retailers must account for seasonal purchasing patterns, store location, size and even the color variations of garments to ensure the right products are in the right place at the right time. The goal is to avoid excess inventory sitting in a warehouse while also preventing stockouts that lead to missed sales. Getting this balance right will give retailers a competitive edge.

  1. Balancing Push and Pull Allocation

For years, retailers have relied on reactive inventory strategies including manual corrections based on what’s needed in the moment. AI integrations and machine learning allow businesses to shift from adjusting to demand to proactively fine-tuning their allocation strategies, often referred to push and pull allocation. For example, let’s say you have two A stores. One is in Hawaii and the other is in New York. A push system would always send the same number of socks to both stores, even though socks are likely not selling well in Hawaii and you might even sell out of certain colors in New York. 

A push system stocks inventory based on store parameters like the square footage and the volume of the store. It’s not based on factors that determine demand. It’s the warehouse that pushes inventory to stores. Push systems make sure stores are fully stocked regardless of who comes to buy it. 

The pull system corrects this issue by stocking stores based on local demand—but it cannot be done without historical data and it cannot be done manually. The challenge for a lot of retailers is that a pull system requires a level of data and metrics. It can respond directly to consumer demand, local weather and store sizes. It helps to keep inventory lean and reduce waste. 

Many retailers are now adopting a hybrid approach, leveraging AI-driven insights to strike the right balance between push and pull allocation. By setting up intelligent, data-backed rules for replenishment and distribution which are tailored to seasonality, store location, product type and customer behavior, businesses can optimize inventory flow and boost profitability.

  1. (Small) Retailers Can’t Afford to Stay in “Excel Hell”

The time to shift to real-time, automated data tools is now. Many retailers are moving beyond “Excel Hell,” replacing outdated Excel spreadsheets with technology that provides real-time data, forecasting and reporting. Even small businesses are now embracing digital tools to stay competitive.

Historically, small retailers have been unable to capitalize on innovative tech due to limited resources. With the rapid advancement in retail tech and inventory management solutions, they can’t afford to not adopt. There are a plethora of affordable options, empowering small business to access customizable solutions that streamline inventory management, enhance customer relationships and improve overall efficiency. By leveraging automation and AI-driven insights, small businesses can offer a seamless shopping experience while optimizing operations to reduce costs. 

  1. Seasonal Planning: Make it or Break it

The better seasonal inventory is planned, the stronger profit margins can become. However, seasonal inventory management requires long-term forecasting while navigating short-term challenges. Retail supply chains involve multiple moving parts. Those include suppliers, warehouses and shipping partners. All of these elements must work seamlessly to avoid costly disruptions. Unexpected delays can lead to stockouts, resulting in lost revenue and frustrating customers, while overestimating demand can leave businesses stuck with deadstock that are difficult to move after peak seasons. Rigid warehouse contracts can further complicate matters, leaving retailers with high storage costs when demand drops. To optimize seasonal selling, businesses must invest in flexible logistics, data-driven demand forecasting and adaptable inventory strategies. 

2025 Retail Trends and the Art of Finessing Technology

While AI might be the brains behind modern retail, people remain at the heart of its success. Technology can analyze data, predict trends and optimize inventory, but it’s the employees on the ground who understand the nuances that AI can’t capture. They know what can be done better, spot local issues like road construction affecting foot traffic or a special event bringing in new customers, and make the critical adjustments that drive business success. 

To discover more retail trends, industry insights, and innovative shifts in retail tech, read our blogs. Email us at info@7thonline.com to talk to the team.

How AI Drives Profitability in Retail

Artificial intelligence (AI) is often hailed as the driving force behind the next big revolution in the retail industry—it’s the buzzword of the year. As retailers look for ways to streamline operations, enhance customer experiences and boost profitability, AI is seen as a beacon of potential. However, finding meaningful AI is a challenge. Not all AI is the same. 

retail tech use case: digitized shirt in a closet

The Challenge of “Fake AI” in Retail

We’ve all seen it; the flashy AI solutions that promise to transform everything but fail to deliver tangible results. “Fake AI” is like grabbing something off the shelf, but the key to reaping the true benefits of AI lies in embedding it into every step of the retail workflow. AI can be a game-changer when it is fully integrated into the retail business model, such as with retail assortment planning and product allocation. Traditionally, these tasks were manual—baked in Excel and driven by spreadsheet formulas. However, AI can take these processes to new heights, reducing errors and providing actionable insights.

Embedding AI into Retail Operations & Planning

To achieve real value from AI, retailers need to move beyond buzzwords and embed AI into their everyday operational processes. For example, when developing an assortment plan, utilize AI to analyze past sales, customer preferences and even external factors such as weather or local events. This allows retailers to plan how to stock the right products in the right quantities at the right time, ensuring that each store’s inventory matches customer demand as closely as possible. The result? Increased sales, reduced markdowns and improved margins. AI turns what was once a guessing game into a data-driven, predictive science.

Optimizing Product Allocation with AI

Allocating the right products to the right locations is essential to ensure that products are available to customers without overstocking or understocking. When you look to allocate products to stores, AI can optimize this process by analyzing customer purchasing behavior, local demographics and regional trends. By incorporating AI into product allocation, retailers can ensure they are maximizing inventory efficiency and aligning stock with consumer demand. AI-powered algorithms can also predict when and where certain products are likely to sell out, allowing retailers to proactively replenish stock before it runs out. This type of precision reduces stockouts and ensures that customers are always able to find what they want when they visit a store or browse online.

A Proven ROI: AI Profitability in Retail

The power of AI in retail lies in its ability to drive profitability by making smarter, data-driven decisions—from product assortment and allocation to inventory management. It’s not just about throwing AI into a tool and hoping it works; it’s about embedding it deeply into every step of the retail process. 

Listen in as 7thonline CEO and founder, Max Ma, joins Adriana Kaegi from Style Culture TV to further discuss how AI drives profitability.

With the right AI solution, brands and retailers can improve inventory productivity, resulting in higher sell-through, improved profit margins and enhanced customer experiences—leading to better margins, increased profitability and more sustainable growth. 7thonline has been providing industry-specific merchandise management solutions and inventory management solutions to the global retail industry since 1999, with meaningful AI capabilities embedded into every step of the retail process. 

To learn more about how AI can help brands and retailers drive revenue through smarter planning, book a demo or email us at info@7thonline.com.