AI Is the New Store Manager

Author

Tam Sood
June 19, 2025

Hey there,

This week, we’re talking about what happens when AI leaves the ad room and crash-lands into your local mall.

Last week, we covered Meta’s mission to wipe out ad agencies with a one-click campaign machine. This week? H&M is going full tech-nerd to fix physical retail — and they’re betting that algorithms, not aesthetics, might be the future of fashion.

Here’s what’s inside:

✅ How H&M is using AI to fix size issues, pricing, and stockouts
✅ What this means for in-store shopping and fast fashion's future
✅ Swipe File: The virtual try-on that cuts returns
✅ Tool of the Week: Trend forecasting powered by real-time social data

🕛 Read time: 2 minutes (quicker than finding your size in-store)

Feature Story

H&M Is Using AI to Fix Everything You Hate About Shopping:

No more chaos racks, missing sizes, or markdown roulette — at least, that’s the promise.

TL;DR

H&M is rolling out AI across thousands of stores to guess what you want, stock it before you even show up, and price it just right. The dream: fewer markdowns, better margins, and a shopping trip that doesn’t feel like a treasure hunt in a laundry pile.

The What — H&M’s Algorithmic Overhaul

H&M is done guessing what might sell. Now it’s letting AI call the shots. Think:

📊 Hyper-local demand predictions based on sales, trends, and even weather
📈 Prices that shift depending on how fast stuff sells
🏦 Store layouts optimized by heatmap (yep, they’re watching where you walk)
🛋️ Inventory tuned to your ZIP code’s taste

The company’s AI doesn’t pick outfits (yet), but it’s making sure the shelves don’t suck. It’s a nerdy upgrade for a brand that desperately needs to outsmart ultra-fast rivals like Shein.

Why It Matters (and Who Should Be Nervous)

For H&M:

  • Better margins without discounting everything

  • Less waste, faster stock turnover

  • Proof that physical stores aren’t obsolete — just outdated

For shoppers:

  • Your size might actually be there

  • The sale rack feels less like Vegas odds

  • Fewer “WTF?” style decisions

For competitors:

  • DTC brands should take notes — AI is no longer just for digital ops

  • Physical retail just got a brain

The Big friction point

Fast fashion has always been about moving a lot of stuff quickly. But now it’s about moving the right stuff smartly. That’s where the machine comes in:

🧠 AI = ruthless logic, real-time decisions
🧵 Humans = taste, intuition, vibes

If H&M nails the balance, it might finally beat the feed-scrolling, cart-abandoning chaos that is Gen Z shopping.

🧵 Key Takeaway

AI isn’t just taking your ad job — it’s rearranging the racks too. Fashion’s next edge? A smarter shelf.

Swipe File (Real tactics used by Fashion brands)

Brand: GlamAI
Tool: AI Try-On SDK

What They Did:
Let shoppers upload a selfie and see how clothes fit their body type, right on the product page.

The Result:
🛌 30% fewer returns
🛎️ +18% conversion rate
🎉 Way less sizing anxiety

Steal This:
Virtual try-ons aren’t just fun — they’re money-savers. Drop one into your PDP and watch your returns (and complaints) drop too.

The Runway Reel

This week i cover job losses and what you should be doing

You might want to watch this podcast from the Godfather of AI.

Tool Time

AI Tool of the Week: Trendalytics


What it is:
A trend-sniffing platform that monitors search, social, and SKU velocity to tell you what’s about to pop.

Why it matters:
Because trend cycles now move faster than your sourcing calendar. This tool helps you buy (and design) with data, not just vibes.

🔬 Use it to:

  • Predict next season’s top sellers

  • Build data-backed assortments

  • Kill trends before they die on shelves

A Final Note

Fun Fact

The average H&M store carries 4x more SKUs than it needs. With AI, they’re hoping to slash that — without missing what people actually want.

Smaller racks. Bigger brains. Let the robot do the folding.

Let me know what you thought of this edition. Until next time,

Let me know what you thought of this edition.Until next time,