AI for Retail: Dynamic Inventory & Pricing

Retail Isn’t Static. Your Inventory Strategy Can’t Be Either

Grace Koplow
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Retail Client Services Director
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Jul 30, 2025

Remember scrambling to clear last season's unsold inventory, watching your margins dwindle? Or perhaps you've felt the sting of a sudden supply chain disruption, leaving shelves empty and customers frustrated? Let’s be honest—inventory used to be a back-office function. Now? It’s a boardroom conversation, and for good reason.

Between tariffs, inflation, and unpredictable consumer behavior, how you manage inventory and price isn’t just operational—it’s existential. And if your systems are still built on static forecasts, lagging data, and stitched-together spreadsheets—you’re not prepared for volatility. You’re exposed by it.

In this article, we’ll break down how forward-thinking retailers are building operational agility by:

  • Using AI to move from reactive inventory to dynamic flow
  • Embedding margin-aware pricing strategies that flex in real time
  • Gaining global visibility to anticipate—and act on—disruption
  • Taking practical, scalable steps to modernize without overhauling everything

And we’ll share how platforms like Google Cloud—and partners like Further—can help you take your next right step.

From Deadstock to Dynamic Flow

In a tariff-heavy world, overstocks aren’t just inefficient—they’re strategic liabilities. Every misstep compounds into margin loss, markdowns, and missed moments in-market.

The retailers leading the way are rethinking forecasting entirely. Instead of relying on historical sales data, they’re using AI to sense demand in real time, adapt to sourcing shifts, and anticipate regional impacts. They’re allocating inventory based on where margin will be highest, not just where sales once were.

Here’s an example of how this comes to life: using real-time demand sensing and predictive scenario planning to shift from reactive allocation to margin-optimized inventory flow.

With Google Cloud tools like Vertex AI and BigQuery, that kind of scenario planning happens in hours—not months. It’s not theoretical. It’s operational.

Dynamic Pricing for a Dynamic Cost Structure

Pricing used to be about consistency. Today, it’s about control.

With input costs fluctuating daily and competition shifting across channels, fixed pricing strategies create risk. Retailers who win in this environment aren’t just adjusting prices—they’re building dynamic pricing into their merchandising DNA.

The best systems account for tariff-driven cost changes, regional demand sensitivity, price elasticity, and competitive movement—all in real time. Promotions become strategic. Markdowns become targeted. Margins don’t just survive—they strengthen.

Here’s an example of how this comes to life: embedding predictive pricing models into merchandising tools to shift from blanket promotions to targeted pricing based on margin sensitivity.

Visibility Is the Power Move

It’s not just about cost anymore. It’s about flow. Movement. Bottlenecks. The ability to pivot.

Retailers using Google Cloud infrastructure are building global visibility across warehouses, stores, suppliers, and channels. They’re getting predictive alerts before disruptions hit the P&L. They’re synchronizing planning across ops, marketing, and merchandising—so everyone moves off the same signal, not three different spreadsheets.

With Google Cloud tools like Vertex AI and BigQuery, that kind of scenario planning happens in hours—not months. It’s not theoretical. It’s operational.: leveraging real-time inventory signals and predictive alerts to proactively adjust campaign timing, sourcing, and allocation.

What We’re Doing at Further

This doesn’t have to be overwhelming. You don’t need a transformation roadmap—you need a foothold.

At Further, we help retail teams start where they are and move faster toward what’s next. Whether you’re AI-curious or already in-flight, there are real, manageable ways to create momentum:

We can help you build bite-sized AI proof of concepts so you can see how tariff scenarios, pricing elasticity, or sourcing shifts actually affect margin before you scale anything.

If your data isn’t AI-ready yet, we help you get there with a data readiness assessment that outlines the clean-up, cloud, and tagging you’ll need—clearly and without hand-waving.

And because we know AI can’t live in a silo, we work cross-functionally with your ops, marketing, merchandising, and IT teams to turn insights into action.

This isn’t about boiling the ocean. It’s about getting out of idle and into motion—intelligently.

The Future Belongs to the Operationally Agile

Tariffs and volatility aren’t the threat—they’re the test.

The retailers who rise now will be the ones who treat inventory and pricing like strategic assets, not afterthoughts. They’ll scenario-plan instead of scramble. They’ll flex pricing with precision. And they’ll build systems—and teams—that are designed to move.

AI and cloud platforms like Google’s are no longer “next-gen.” They’re now. And with the right partners, you don’t need a perfect stack to get started—you just need momentum.

If you're ready to shift from static to strategic, from reactive to resilient—let’s build what’s next.

Grace Koplow
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Retail Client Services Director

For more than 10 years, Grace Koplow has seamlessly blended roles in marketing, analytics, project management, team leadership, operations, and client services to turn data and technical challenges into key wins for businesses. Her unparalleled ability to solve complex business problems, combined with her expertise in bridging diverse business functions with innovation and strategic insights, has been pivotal in driving growth and fostering a culture of teamwork and development. Outside of work, Grace is an avid sports enthusiast and traveler and is well-known for her ‘dad jokes’, which uphold her belief in the power of humor to create a positive, united work environment.

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