For shoppers on a budget, few things spark more joy than a “sale” sign. And there are certain times of year when those sales are almost guaranteed. Think shorts and tank tops crowded together on clearance racks in late July, or winter hats and gloves available at half-price after the holidays.
But there’s one group that doesn’t like these sales at all: retailers.
“Inventory is the most expensive part of any brand or retailer’s balance sheet,” says James Theuerkauf, cofounder and CEO of Syrup Tech, an AI platform aimed at helping companies determine how much inventory they need to have on hand and where they are most likely to sell it. “It’s extraordinarily hard to manage. There’s thousands or tens of thousands of SKUs and getting that inventory right is a core driver of profitability.”
When retailers wind up with more apparel than they can sell at the end of a season—or don’t have enough of an in-demand item available—they lose money.
Theuerkauf says Syrup’s technology can reduce excess inventory by up to 20% to 30%, and increase full-price sales by 4% to 8%.
Brands including Faherty, Abercrombie & Fitch, and several others are currently using the AI.
Check out the video above to learn how the AI platform is impacting their business and more about how Syrup Tech works.