Merchandising, whether in stores or online, is a critical piece of any retail business. Whether merchandising is automated through smart merchandising or executed by humans, it’s crucial to understand what the customer wants to ensure a positive shopping experience.

Intelligent merchandising combines data analysis and automation to deliver the personal shopper experience customers want. AI can understand what shoppers have already looked at, what products they’re most interested in or what combinations of items are most likely to appeal. It’s a powerful way to give customers control and relevance while freeing up human teams to focus on strategic merchandising efforts.

How Intelligent Merchandising is Transforming the Shopping Experience

AI digital merchandising delivers the right product to shoppers at every touchpoint—from homepages to search results to product detail pages and beyond. By learning what shoppers have been looking at, AI-powered smart merchandising can automatically display infinite product permutations and combinations that match their needs, even as they navigate the site.

A personalized shopping experience shows customers that you care about them and understand their wants, needs, and preferences. It makes them feel valued and understood, which builds trust and loyalty—and ultimately leads to higher sales. For example, Taelor, a menswear rental service, uses AI to offer personalized outfits that are perfectly tailored to each customer’s unique style profile.

AI merchandising tools use predictive analytics to accurately forecast demand at the granular level, enabling precise inventory replenishment and reducing excess stockpiling and warehousing costs. This allows retailers to optimize inventory levels and minimize the need for deep discounts, preserving profit margins. Ultimately, achieving effective AI-driven merchandising requires accurate, high-quality data—a challenge that many retailers face.