Changing the Ratios of Retailing with AI
How AI can deliver a 40-50% increase in annual operating profits for retailers who make the right calls, right now.
The First Technology to Completely Rewrite Retail P&L in Centuries
For the first time, a single technological leap will transform profitability ratios that have barely shifted since the 19th century. Those who lead will set new benchmarks that late starters find impossible to catch up with.
The Challenge
- • Data readiness and legacy systems
- • Skills gap and analysis paralysis
- • Siloed solutions lacking integration
The Risk
- • Falling behind AI-powered competitors
- • Losing AI-enabled customers in 2026-27
- • Insurmountable gap if you wait
The Opportunity
- • 40-50% profit increase potential
- • $1.5 trillion industry potential by 2029
- • Set new industry benchmarks
The Numbers That Will Transform Your Business
Inside This Whitepaper: Your Complete AI Transformation Guide
- AI's seven core capabilities: automate, predict, optimize, recommend, sense, advise, generate
- From Machine Learning to Generative AI and Agentic Workflows
- Real-world applications across 15 operational areas
- Customer Insight: The force multiplier—5% sales gains, 0.2-0.4% EBIT improvement
- Inventory Productivity: Reduce lost sales by 2/3, cut shrink by 0.5-1%
- Personalization: 38% reduction in shopping overwhelm, 0.3-0.5% EBIT gains
- Marketing: 80% next-purchase prediction accuracy, 0.5-1% revenue gains
- Plus: Supply chain, customer support, and employee productivity transformations
- Walmart: $11 billion annual potential with comprehensive AI deployment
- Kroger: $1.8-2 billion annual potential across operations
- Detailed EBIT margin improvements by operational area
- How 38% compounding gains emerge from 1% daily improvements
- Business strategy and resource assessment framework
- Data readiness: audit, architecture, governance
- From mundane task automation to agentic workflows
- Timeline: Days for pilots, 6-12 months for transformation
- Privacy, data security, and PII protection strategies
- Handling AI accuracy, hallucinations, and bias
- Intellectual property and regulatory compliance (EU AI Act)
- Building trust with stakeholders and customers
"For the first time, a single technological leap will completely rewrite the P&L ratios of retailing, which have barely shifted for centuries."
"Those retailers that lead will rapidly be setting new benchmarks for efficiency and productivity. They'll be rewriting the ratios of retailing, in ways that others will find impossible to catch up with later."
What This Means for Your Business
Force Multiplier Effects
Customer insight improvements create compounding benefits across every operational area, multiplying your returns exponentially.
Industry Leadership
Set new efficiency and productivity benchmarks that competitors will find impossible to match if they start later.
Better Workforce
Achieve 15-25% reduction in turnover, faster training, and empower employees with AI-augmented decision-making.
Future-Ready
Meet AI-powered shopper expectations arriving in 2026-27 with personal shopping agents and generative AI search.
Download the Whitepaper
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Changing the Ratios of Retailing Whitepaper
48 pages of actionable insights • Free download