H&M reportedly taps technology to solve inventory problem
H&M is looking beyond markdowns to deplete its excess inventory, and offer more customized assortments.
By leveraging data in news ways, H&M expects to stay ahead of trends, as well as customize the selection and price of products in its stores, according to Business Insider, which cited the Wall Street Journal.
For example, the retailer is leveraging image recognition tools to analyze social media and fashion blogs for new styles and trends. This information will then be used to form its collections, Business Insider said.
In addition, H&M will use analytics to track what merchandise is bought and returned to each store to determine what resonates well with local customers. This will help the company customize its store assortments to ensure that it is stocking exactly what its customers want, according to the report.
The technologies are being tested in one Stockholm store. The processes helped cut the location’s total number of items by 40%, and replaced men’s, women’s, and children’s basics with more expensive items, the report said.
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