Key insights from NRF 2025: A modern approach to profit-optimized retail demand planning
Today’s retailers face major challenges, including intense competition, evolving consumer demand, rising costs and overwhelming amounts of data. With rapid advancements in artificial intelligence (AI) and machine learning (ML), retailers need to adopt smart, data-driven demand planning processes to stay ahead.
At NRF 2025, Brian Kilcourse, Managing Partner at RSR Research, led a Big Ideas Session on how AI is transforming retail demand forecasting. He was joined by Gurhan Kok, Founder and CEO of invent.ai, and Jennifer Chaffee, Senior Manager of Merchandising IT at Mattress Firm. Together, they explored how a simplified AI-driven approach enhances demand forecasting, improves accuracy, and enables faster, smarter decisions—boosting profit and customer satisfaction.
AI-driven solutions for retail’s top challenges
AI enables retailers to refine strategies, adapt to market changes and optimize pricing throughout a product’s lifecycle to maximize profit dollars. AI analyzes vast sales and real-time data, enabling retailers to refine assortments, optimize inventory, and streamline pricing.
By leveraging statistical forecasting and time series analysis, AI enhances demand forecasting accuracy, allowing demand planners to create precise supply chain planning strategies. As a result, retailers can reduce excess inventory while ensuring stock availability. AI also improves demand planning and forecasting by pulling in multiple data sources to anticipate trends, personalize customer interactions and optimize store layouts based on shopper behavior. Consumers can enjoy an enhanced shopping experience and easier product discovery, while retailers boost sales.
AI further strengthens promotions and pricing strategies through predictive analytics, enabling dynamic pricing and targeted offers that drive conversion rates. Automated demand forecasting methods eliminate manual data entry, freeing up planning teams to focus on high-value strategic initiatives. Despite concerns about AI displacing jobs, it enhances retail roles by automating repetitive tasks, allowing employees to focus on decision-making, customer service and innovative planning.
The future of retail demand forecasting
Invent.ai is leading the way in AI-driven demand planning and forecasting solutions that grow sales, revenue and margin dollars. Unlike traditional retail demand planning methods that focus solely on KPIs, invent.ai’s solutions prioritize profit maximization. We offer a comprehensive suite of AI-powered tools, including Assortment Planning & Optimization, Merchandise Financial Planning, Lifecycle Pricing & Promo, Replenishment & Allocation, Phantom Inventory and Returns. These solutions seamlessly integrate with existing retail systems for fast, measurable value.
Invent.ai is the powerhouse delivering game-changing forecasting capabilities for retailers like Mattress Firm, Five Below, Academy Sports + Outdoors and Tailored Brands. As a trusted partner, we empower our clients to boost demand forecast accuracy, supercharge sales and elevate customer satisfaction.
The retail industry is evolving rapidly, and AI-powered demand planning is becoming a necessity for staying competitive. Retailers leveraging artificial intelligence and machine learning for retail demand forecasting gain an edge by unlocking new growth opportunities, optimizing supply chain planning, and driving profit margin growth. Invent.ai is at the forefront of this transformation, helping retailers overcome today’s challenges and thrive in the future.
Watch the full session video now: AI simplified: A modern approach to profit-optimized retail planning