Retail News CRM

Tag: inventory management

  • Amazon Rolls Out Agentic AI Service for Third-Party Sellers

    Amazon Rolls Out Agentic AI Service for Third-Party Sellers

    Amazon on Wednesday, September 25, 2026, introduced a new agentic artificial intelligence service for third-party sellers on its main e-commerce site, expanding automation for listing and inventory management.

    The service performs multiple actions with little to no human intervention and is free and optional for any seller to use, according to Amazon vice president Mary Beth Westmoreland.

    How the autonomous workflows operate

    Known as “workflows,” the system runs continuously through the Seller Assistant platform to carry out prompts such as alerting sellers if ratings drop, monitoring product pricing, and connecting to Anthropic’s Claude and Amazon’s Quick.

    Amazon built the capability into its Seller Assistant platform. The system stores merchant profiles to generate recommendations for discount schedules, promotions, and reorders.

    Integration with external models

    Plug-ins connect the service directly to third-party artificial intelligence platforms. The initial rollout supports connections to Amazon Quick and Anthropic’s Claude models.

    Mary Beth Westmoreland, vice president of worldwide selling experience at Amazon, said the agentic tool is free and optional for registered merchants. Sellers also control the volume of operational and personal account data shared with the system.

    Shift toward autonomous seller operations

    Platforms across Asia and Western markets already use generative tools for copywriting. Agentic systems shift the focus to operational execution. Cross-border sellers managing thousands of stock keeping units across multiple time zones can modify listings without waiting for staff review.

    Risks center on algorithmic errors and sudden price wars. Margin compression can accelerate across crowded product categories when thousands of automated agents adjust pricing at the same time.

    Platform automation timeline

    Over the past two years, platform automation has expanded from listing summaries to predictive warehouse inventory placement. Multi-step software agents represent the next stage in reducing support overhead.

    Adoption rates across North America, Europe, and Asia-Pacific regional hubs will determine whether Amazon expands plug-in access to more external AI models later this year.

  • Australian Retail Profit Lags Sales as Hidden Operating Costs Bite Margins

    Australian Retail Profit Lags Sales as Hidden Operating Costs Bite Margins

    Australian retail sales rose 2.8 per cent in the 2024-25 financial year, but operating profit before tax grew just 1.5 per cent to $38.8 billion as margin pressure intensified.

    Data from KPMG’s Retail Health Index shows that gap widening further into 2026, forcing boards to rethink conventional cost cutting.

    Retailers confronting squeezed margins often reduce store staff hours and trim marketing budgets. Advisory firm Olvera Advisors found these immediate cuts routinely fail to stop profitability leaks, which sit deeper in inventory management, returns handling and supplier contracts.

    Holding Costs and Inventory Drag

    Aged stock sitting in warehouses past 90 days creates an unmeasured drag on working capital. Benchmarking from APQC puts median inventory carrying costs at 10 per cent of value each year. A business holding $5 million in aged stock absorbs $500,000 annually in holding expenses before accounting for final clearance markdowns.

    Supplier renegotiations also remain narrowly focused on unit pricing rather than structural terms. Data from the Payment Times Reporting Regulator shows average retail payment terms at 31 days, though the 95th percentile extends to 77 days. Rebate structures frequently remain poorly tracked at the executive level, echoing findings from the Australian Competition and Consumer Commission’s supermarket inquiry.

    The Multi-Channel Fulfilment Trap

    E-commerce fulfilment and customer returns represent another growing source of unallocated operational losses. Total costs for a single product return average roughly $47 on an $80 basket, factoring in $20.78 for two-way freight, $10 in handling and an average $16 markdown. For a merchant processing one million orders annually, each single percentage point in return rate drains approximately $470,000.

    Similar accounting oversights previously hit Australia’s largest conglomerates. Woolworths paid $217.4 million for an 80 per cent stake in marketplace MyDeal in 2022 before shutting it in 2025 at a cash cost between $90 million and $100 million, alongside a $45 million impairment charge. Rival Wesfarmers similarly wound down its Catch marketplace after channel-level operating costs outpaced unit economics.

    Retail operators now face pressure from commercial lenders to present granular reporting on stock ageing past 90 days, net channel profitability and full-year return costs ahead of the next seasonal markdown cycle.

  • Sportswear Brands Overhaul Supply Chains as Functional Demand Jumps 74%

    Sportswear Brands Overhaul Supply Chains as Functional Demand Jumps 74%

    Sportswear brands across Asia-Pacific are overhauling supply chains and trimming product lines to protect margins as regional functional apparel demand heads toward a 74 percent surge by 2033.

    Euromonitor projects the Asia-Pacific region will outpace all other markets in sportswear growth through 2030, driven by outdoor recreation, running, racket sports, and women’s athletics.

    Cutting Styles and Betting on Function

    Shoppers are resisting price increases across regional retail markets, forcing sportswear labels to rely on operational efficiency rather than markups. Valerie Van Tran, partner at Delta West Group in Singapore, said consumers increasingly favour durability and performance over fashion-led collections.

    “As consumers become increasingly value-conscious amid macroeconomic uncertainty, demand for functional apparel is projected to grow 74% by 2033, demonstrating that customers are willing to pay for quality rather than trends,” Van Tran said.

    Fast Retailing’s Uniqlo built a dominant regional footprint by focusing on core functional basics, while Chinese platforms Shein and PDD Holdings’ Temu use algorithm-driven forecasting to eliminate unsold stock. Traditional sportswear makers are now adopting similar digital tools to shorten development cycles and limit inventory risk.

    Pricing Pressure and Sourcing Shifts

    Passing higher input costs directly to shoppers is no longer working. Aditya Kaushik, analyst at Coresight Research, said brands must give consumers concrete reasons to pay premium prices, such as superior materials or improved fit, while ditching poor-selling styles.

    Brands need to tighten collections, work directly with manufacturers, and shift away from storewide discounting in favour of targeted promotions, Kaushik added. He pointed to Ralph Lauren’s strategy of improving product mix and customer experience to protect perceived value without eroding margins.

    For global and regional sportswear players, the operational playbook has shifted: inventory precision matters more than sheer volume expansion. Diversified sourcing networks are replacing concentrated factory footprints across the region, shielding apparel labels from trade tariffs and transport bottlenecks.

    Brand operators across the region now face the challenge of proving their investments in automated forecasting and tighter vendor networks before the 2027 production cycles lock in.

  • AI Retail Assistant Spending to Reach USD 22.4 Billion by 2036

    AI Retail Assistant Spending to Reach USD 22.4 Billion by 2036

    Global retail spending on artificial intelligence assistants will expand from USD 2.4 billion in 2026 to USD 22.4 billion by 2036, according to industry data from Fact.MR. The projected 25.0 per cent annual growth rate adds USD 20 billion in total market value over the decade, lifted from a baseline of USD 1.9 billion recorded in 2025.

    Asian retail markets represent two of the primary growth corridors over the forecast period. South Korea will expand at a 25.9 per cent compound annual rate through 2036, driven by high mobile commerce penetration and dense transaction pools inside native retail apps. Japan is projected to grow at 21.0 per cent annually, propelled by chain store operators adopting automated multilingual customer support and digital floor guidance.

    Cloud Platforms and Inventory Signals Dominate Spend

    Software platforms will account for 41.0 per cent of all retail assistant expenditure in 2026. Retailers are selecting single-platform layers to handle catalog search, guided selling journeys, and customer service escalation rather than buying point solutions.

    Cloud infrastructure will capture 51.0 per cent of deployments this year, giving store networks centralized access to generative models without the expense of hosting separate environments for each brand format. Large enterprises will generate 42.0 per cent of overall market demand, backed by dedicated governance teams and complex multi-channel data operations.

    Assistant capabilities are also shifting away from basic conversational bots toward merchandise planning. Forecasting tools will take 44.0 per cent of segment demand in 2026. Merchandising desks are connecting online search patterns with replenishment schedules to adjust inventory before store shortages occur.

    Integration Obstacles and Enterprise Rollouts

    The speed of commercial adoption faces technical friction across legacy systems. Data quality issues across fragmented product catalogs will shave an estimated 0.8 percentage points off market expansion, while internal governance reviews and legacy software integrations remain the primary bottlenecks for department store and hypermarket chains.

    Global technology providers have stepped up rollouts to meet store demand. Google Cloud launched its Conversational Commerce agent on Vertex AI in September 2025, while Microsoft introduced automated brand agents for Shopify and Copilot Studio templates in January 2026.

    The critical operational test for Asian retail operators through 2027 will center on catalog hygiene and real-time inventory synchronization across physical stores and marketplace channels.

  • Mobile POS Deployments Accelerate Across Asian Retailers as Mobile Traffic Hits 59%

    Mobile POS Deployments Accelerate Across Asian Retailers as Mobile Traffic Hits 59%

    Singapore-based retail software vendor ETP Group rolled out its unified mobile point-of-sale platform across Asia-Pacific as mobile channels captured 59 percent of regional retail web traffic. That traffic share climbed from 46 percent in early 2024, forcing physical store operators to equip floor staff with connected billing and stock-checking tools.

    The system connects handheld devices directly to the enterprise core through ETP Unify, giving sales associates real-time visibility across retail locations and distribution warehouses. Rather than routing shoppers to fixed cash counters, staff can process billing, register loyalty accounts, and trigger ship-from-store or click-and-collect fulfillment directly beside the merchandise.

    Connecting Store Floors to Live Inventories

    Operating requirements vary sharply across individual markets. High-density retail centers in Singapore use mobile clienteling to retrieve shopper purchase histories and targeted promotions, while chains in Indonesia and the Philippines deploy handhelds to run endless-aisle transactions when shelf stock runs out. In India, where research from Meta and the Retailers Association of India found social media influences 77 percent of retail purchase decisions, mobile terminals allow associates to cross-reference products discovered on WhatsApp and third-party marketplaces.

    RetailNews Asia notes that fashion and specialty chains across Southeast Asia spent years treating mobile checkout hardware merely as auxiliary registers to ease holiday queues. Integrating those devices into enterprise inventory records marks a permanent move away from siloed store databases, bridging the operational gap between e-commerce catalogs and physical shops.

    Managing AI-Assisted Shoppers

    Store associates must also respond to consumers who arrive with machine-generated comparison data. Deloitte research across the region indicates that nearly three-quarters of consumers use artificial intelligence tools to research or compare products before buying, while 29 percent of consumer-facing enterprises have begun deploying agentic AI tools.

    Retail operators now face the task of unifying pricing logic, promotional rules, and local fiscal compliance across portable devices, with enterprise integration rollouts continuing across Southeast Asian store fleets through late 2026.

  • Mid-Market Retailers Risk Logistics Stalls as Growth Outpaces Warehouses

    Mid-Market Retailers Risk Logistics Stalls as Growth Outpaces Warehouses

    Fast-growing retailers risk capping their own expansion when warehouse operations and inventory models fail to adapt to higher order volumes, according to supply chain advisory firm Prological Consulting.

    Operational breakdowns typically surface when mid-market businesses reach national scale, creating sudden spikes in freight bills, warehouse labour hours, and fulfilment errors.

    Peter Jones, managing director and founder of Prological Consulting, said businesses frequently rely on informal employee knowledge and manual workarounds during early growth phases. While nimble setups support early trade, those same methods turn into severe constraints once product catalogues and sales channels multiply across regions.

    Warning signs in warehouse operations

    Operational friction usually appears first in financial metrics monitored by chief financial officers and operations heads. Unbudgeted transport charges, rising import costs, and climbing warehouse labour hours signal that existing facilities can no longer handle inventory flow efficiently.

    Fulfilment disruptions follow quickly. Split shipments, inaccurate stock counts, and delayed customer deliveries indicate that facility layouts and tracking methods have reached capacity limits.

    Jones cited a Sydney-headquartered retailer that expanded from a startup into a national store network and online business generating 45 million Australian dollars in annual turnover. The company operated out of an overcrowded warehouse where pallets blocked internal transit paths and inbound import processing slowed due to heavy reliance on a handful of veteran workers.

    The business resolved the bottleneck by shifting into a larger facility within six months. The transition allowed the retailer to surpass its revenue forecasts and restore reliability across its e-commerce fulfilment operation.

    Balancing automation and inventory compromises

    Competing effectively against automated logistics networks requires retailers to integrate machinery and digital tracking into their supply chain plans. Manual operations face higher unit handling costs and slower turnaround times compared to rivals using automated storage and retrieval systems.

    Across the Asia-Pacific region, mid-tier consumer brands encounter similar friction when transitioning from local store footprints to omni-channel distribution. Operators that delay warehouse redesigns often see fulfilment expenses consume operating margins before corrective capital investments are made.

    Retailers must evaluate trade-offs between inventory holding costs, distribution points, and lead times rather than pursuing unattainable logistics perfection. Merchandising teams, store networks, digital storefronts, and third-party logistics partners need coordinated forecasting to prevent misplaced stock across regional hubs.

    Prological expects automated picking systems and predictive replenishment tools to dictate cost competitiveness as regional freight and warehouse labour expenses remain elevated.