AI for retailers

For years, conversations about technology in retail focused on websites, ecommerce and social media. Today, attention is increasingly turning to artificial intelligence.

Our research for The reinvention of the independent retailer found that AI and automation are now viewed as some of the biggest opportunities facing retailers over the next 12 months, second only to growing online sales. 

Manoj Jethwa, Founder and CEO, EPOS Direct explains: "AI is one of the best things that's ever opened up to anybody, but particularly retailers at this moment in time. You don't have time to pull data into spreadsheets and spend hours analysing it. Now you can simply ask questions and get answers in seconds."

Yet there remains a significant gap between interest and adoption. While 56% of retailers see AI as a major opportunity, only 24% have invested in AI tools so far. That gap doesn't appear to be about cost. More often, it's about confidence.

Many retailers are curious about AI but aren't quite sure where to start, what tools to use or whether it can genuinely help their business. For many independent retailers, the challenge is not recognising the opportunity, but understanding how AI fits into everyday operations.

Andrew Goodacre, CEO of the British Independent Retailers Association (BIRA) advises retailers to take the plunge: "Start to explore AI and look at the AI opportunity. Just play with ChatGPT a little bit. Give it a challenge of writing your social media post to promote a certain product. Use it, see what it can do. Start to get to learn, don't be afraid of it."

The good news is that getting started is far easier than many retailers imagine. You don't need specialist knowledge, expensive software or a dedicated technology team. In many cases, you can begin using AI tools for free.

Before we look at practical retail use cases, here are some of the most accessible tools available today.

AI tools for independent retailers

The best AI tool for your business depends on the problem you're trying to solve. Some tools are better for content creation, while others are stronger for research, planning and analysis.

3 steps to get started with AI

Step 1: Pick one problem

Don't start with: "How can I use AI across my entire business?". Start with: "What's one task I wish took less time?" This could be anything from reviewing sales data to planning promotions or creating product descriptions. The retailers gaining the most value from AI are often solving one small problem at a time. For most independent retail businesses, the quickest wins come from reducing repetitive admin and freeing up time.

Step 2: Experiment before you invest

You don't need specialist software immediately. Retailers can begin by testing free or low-cost tools to understand what AI is capable of. The goal is not perfection. The goal is learning.

Step 3: Build your confidence gradually

Many retailers worry about "getting AI wrong". The reality is that AI works best as an assistant, not a replacement for human judgement. The goal is not to remove the retailer from the process. It's to make you more productive.

9 practical ways retailers are using AI today

1. Generate social media content faster

Many retailers know they should be posting regularly on social media. The challenge is finding the time. AI can help generate:

• Post ideas
• Caption drafts
• Product descriptions
• Seasonal content
• Customer engagement questions

For example, instead of staring at a blank screen, you can ask: "Write five Instagram captions for an independent gift shop promoting autumn products." The result won't be perfect every time, but it can dramatically reduce the time spent creating content from scratch.

2. Create product descriptions

Writing product descriptions is rarely anyone's favourite task. AI can turn a basic list of product features into customer-friendly descriptions for websites, marketplaces and social commerce platforms. This is especially useful for retailers selling online through multiple channels.

3. Plan marketing campaigns

Many independent retailers operate without a dedicated marketing team. AI can help create:

• Monthly marketing calendars
• Promotional ideas
• Seasonal campaigns
• Event concepts
• Customer retention initiatives

Rather than wondering what to do for Halloween, Black Friday or Christmas, retailers can use AI as a brainstorming partner.

4. Improve customer loyalty communications

Customer loyalty emerged as one of the strongest themes in our research, with 69% of retailers citing loyal customers as one of their biggest sources of confidence for the future. AI can help retailers create:

• Loyalty emails
• Thank-you messages
• VIP customer communications
• Re-engagement campaigns
• Birthday promotions

The goal isn't to replace human relationships. It's to make staying in touch easier.

5. Turn data into action

As Manoj Jethwa, Founder and CEO of EPOS Direct, explains: "Retailers don't really have a sales problem. They have a visibility problem." Many retailers already have access to sales and customer data. AI can help answer questions such as:

• Which products are slowing down?
• Which categories are growing?
• What should I reorder?
• Which products are frequently purchased together?

This is one of the clearest examples of how AI for retail businesses can create value. Rather than spending hours reviewing spreadsheets, retailers can focus on making informed decisions.

6. Plan events and in-store experiences

Events, workshops and customer experiences are becoming increasingly popular ways for retailers to diversify revenue and encourage footfall. AI can assist with:

• Event concepts
• Workshop ideas
• Customer invitations
• Marketing copy
• Event schedules

Whether you're running a craft workshop, product launch or seasonal shopping evening, AI can help reduce planning time.

7. Support business planning

Business planning often gets pushed aside because retailers simply don't have enough time. AI can help by:

• Creating business plan templates
• Summarising market research
• Identifying growth opportunities
• Generating SWOT analyses
• Stress-testing ideas

It's not a substitute for experience or judgement, but it can provide a useful starting point.

8. Improve customer service

AI can help retailers respond faster to common customer questions. Examples include:

• Delivery queries
• Return policies
• Product information
• Store opening hours
• Event details

Even simple AI-assisted responses can reduce administration and improve customer experience.

9. Generate new product and range ideas

Many retailers are constantly looking for ways to keep their offer fresh.

AI can help identify:

• Emerging trends
• Complementary products
• Seasonal opportunities
• New customer groups
• Potential service additions

It won't replace retail expertise, but it can generate ideas that may not otherwise have been considered.

The real opportunity is time

When retailers talk about AI, the conversation often focuses on marketing, customer service or business planning. But perhaps the biggest opportunity AI presents is something much simpler: time.

Today's retailers are juggling more responsibilities than ever before. They're managing customers, suppliers, stock, marketing, finances and operations, often all at once. As Lee Hart, Founder and CEO of Stored, explains: "Technology is actually giving people the opportunity to get better at their jobs, to get better at understanding their customers and to get better at serving them."

The independent retailers gaining the greatest advantage from AI are not necessarily the most technical. They're often the ones simply willing to try something new. Because ultimately, the value of AI isn't the technology itself. It's what retailers can do with the time it gives back.

Important to note:

• AI works best as an assistant rather than a replacement for human judgement. It can help generate ideas, analyse information and save time, but you should always apply your own expertise, review outputs carefully and make final decisions themselves.
• Before uploading confidential or commercially sensitive business information to an AI tool, consider the risks involved and whether the information is appropriate to share with that tool.
• Retailers using AI should ensure that any use involving personal data complies with applicable data protection laws, including the UK GDPR.