Retailers deploy AI to optimize inventory and supply chain operations
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Macy's expands AI forecast tool for inventory replenishment

Macy's is rolling out an artificial intelligence forecast overlay capability across its replenishment operations, moving from pilot to broader implementation to improve in-stock levels and operational efficiency. For commerce practitioners, this signals how major retailers are deploying AI to optimize product allocation and drive supply chain savings as part of larger transformation initiatives.

Macy's Inc. is adding an artificial intelligence forecast overlay capability to its replenishment operations, according to remarks made during a September 10 earnings call (Supply Chain Dive - Technology). The implementation is part of the retailer's initiative tied to strengthening inventory replenishment and ensuring "the right product in the right place at the right time," as COO and CFO Tom Edwards described it. The AI capability is currently moving from pilot to broader rollout in a bid to improve in-stock levels and drive inventory efficiencies (Supply Chain Dive - Technology).

Macy's has been advancing on a three-point transformation plan that focuses heavily on supply chain optimization, with expected savings of $235 million by 2026 (Supply Chain Dive - Technology). The retailer is entering the fall season in a good inventory position, with inventory up 2.5% in Q2, in line with sales growth (Supply Chain Dive - Technology). For commerce practitioners, this deployment reflects a broader industry trend toward AI-driven inventory optimization, positioning Macy's alongside competitors like Target, Lowe's, and Kohl's that are similarly leveraging machine learning to refine product availability and reduce supply chain disruptions.

Sources:1 report