Coppel’s Piloting Predictive AI to Guide Footwear Assortment, Pricing

Source Domain: wwd.com

Coppel, Mexico’s largest department store chain, is undergoing a $4.6 billion transformation strategy that heavily relies on leveraging artificial intelligence (AI) for merchandising.
The chain has piloted predictive AI using First Insight’s platform to analyze consumer feedback on private label women’s apparel and is now expanding this initiative to include private label men’s apparel and footwear.
Coppel’s commercial teams use professional expertise, historical sales data, and direct customer feedback, enhanced by predictive AI, to make more informed decisions and develop products that better meet customer needs.
The First Insight platform captures direct consumer feedback on products before they go to market and uses this data to generate predictive outputs such as value score, model price, demand curve, and price elasticity curve.
The AI forecasts the potential demand and pricing of products before production, helping Coppel determine which styles and products will likely be successful and which should be discarded early to save resources.
Coppel’s previous integration of AI has optimized existing operations, but the partnership with First Insight introduces a new layer of competitive advantage by allowing Coppel to forecast and adapt to consumer preferences before products are even produced.

You may have missed