In the last five years, inventory management practices have swung from just-in-time to just-in-case, then back again. Now retailers are trying to split the difference with a new focus on technologies, many of which are powered by AI, designed to optimize stock levels and mitigate supply chain risks regardless of what’s happening in the wider economy.

Despite challenges such as a lack of integrated data and a high failure rate for AI-related pilot projects, retailers are investing in new technology to help track and manage the flow of inventory. Here are a few examples of what’s being tested.

Keep reading here.—AV

There have been some positive signs lately for discretionary spending.

At one major retailer, for example, more discretionary categories had a better month than essentials. The latest monthly sales data from Costco showed non-food categories increasing in the mid to high single digits in June, outpacing food and sundries, which increased in the mid-single-digit range. Jewelry, major appliances, and gift cards fueled the uptick, with overall sales rising 8% year over year.

The trend could be more widespread than the popular warehouse store: Deloitte’s ConsumerSignals report pointed toward a slight recovery in discretionary spending while also acknowledging there is still room for improvement.

Keep reading here.—AV

For ear-piercing studio Studs, an experiential retail setting was the only natural way to offer (and sell) its services.

Launched by chief executive officer Anna Harman and co-founder Lisa Bubbers, Studs opened its first two stores in 2019, but it quickly closed shop due to the Covid-19 pandemic.

After shifting its focus to e-commerce in 2020 and 2021, Studs began a rapid store expansion in 2022, nearly quadrupling its retail fleet in just four years. Since 2022, Studs has opened roughly eight to 10 stores a year, including stores in new cities, relocating storefronts, and expanding within high-volume locations.

Retail now makes up 85% of the brand’s revenue structure, and Harman stated the rapid retail expansion has increased revenue by 2,000% since 2020.

Keep reading here on Revenue Brew.—LI