The forecasting capability is moving from pilot to broader implementation as the retailer targets improved in-stock levels and operational efficiencies.
* Macy's Inc. is adding an artificial intelligence forecast overlay capability to its replenishment operations, according to a Sept. 10 earnings call.
* The implementation is part of the retailer's initiative tied to strengthening inventory replenishment and "having the right product in the right place at the right time," COO and CFO Tom Edwards said.
* The AI capability is currently moving from pilot to broader rollout in a bid to improve in-stock levels and drive inventory efficiencies, Edwards said.
Dive Insight:
Macy's has been advancing on a three-point transformation plan that focuses heavily on its supply chain that was expected to drive $235 million in savings by 2026. Launched in 2024, Macy's "Bold New Chapter" aims to improve end-to-end operations, including closing "unproductive" supply chain centers and opening an automated facility in North Carolina.
"In total, we expect to realize supply chain efficiencies in the second half of 2026, which will benefit gross margin," Edwards told analysts during the earnings ...