Department store David Jones has signed on an AI-powered analytics company to improve accuracy in stock allocation by style and size across its stores and online channels.
Speaking with Ragtrader, David Jones executive GM of womenswear, footwear and accessories Bridget Veals said the move will help reduce overstock and markdowns, ensuring its customers can access the right products at the right time.
“While it’s still early days, industry research suggests that intelligent data platforms like Style Arcade can improve gross margins by up to 25 per cent over time,” Veals said.
“Given the scale of our operations, we expect to see meaningful efficiencies in profitability and inventory turnover while continuing to provide exceptional service to our customers.”
According to Veals, the department has historically relied on masses of data and complex spreadsheets to ensure the right mix of products is available across its network.
She said that having a deep understanding of its product ranges is critical to delivering a seamless shopping experience.
“With a diverse mix of brands and curated selections across locations, maintaining inventory accuracy has always been a key focus for David Jones,” she said.
Alongside its partnership with Style Arcade, Veals confirmed the retailer is investing in other digital transformation initiatives that further integrate AI-driven insights across the business.
“Our focus is on improving personalisation, omnichannel retailing, and inventory optimisation,” she said. “This includes leveraging advanced data analytics to enhance demand forecasting, refining our online and mobile shopping experiences, and strengthening our digital engagement with customers.
“As we continue to evolve, technology will remain a key enabler in delivering exceptional service and efficiency across our network.”
David Jones operates over 40 stores across Australia and New Zealand, alongside an online store and a shopping app.