If there was any lingering doubt about the crucial role technology, particularly generative AI, will play in the future of the retail sector, it was thoroughly dispelled by SAP customers during the National Retail Federation’s (NRF) annual Big Show in New York in January.
Retailers are looking at new technology tools like AI to help them move into new channels and discover new growth streams, enter new markets and find new ways to engage with consumers, and work with suppliers to find efficiencies in their supply chain, Kristin Howell, SAP’s global vice president of Retail Solution Management, said.
“There is a tremendous market out there for retailers to utilize AI and improve their business processes,” she said during an open theater session at the SAP booth during the show.
Over two days, retailers who came to the SAP booth spoke about the challenges they face, talked about data, data management, and the opportunities presented by AI, and heard about how new solutions and services from SAP tailored specifically to the retail sector can help them become more efficient and serve their customers better.
SAP officially launched the SAP S/4HANA Cloud Public Edition, retail, fashion, and vertical business solution at the show. The new solution helps centralize operational data and can integrate finance, procurement, and merchandising processes.
“Whether you’re a franchisee with a handful of stores or the biggest retailer out there, there’s a certain level of complexity that comes with running any retail business, especially with consumers who expect a very flexible fulfillment experience,” Howell said during a press briefing. “In order to really fulfill these expectations profitably and meet the needs of these consumers, we believe that this retail-tailored ERP solution is going to make the difference for them.”
SAP also announced plans to bolster its retail offerings with two new tools—a refreshed loyalty management cloud service and a generative AI assistant designed to give store employees and consumers an easier way to find what they need.
SAP S/4HANA Cloud Public Edition retail, fashion, and vertical business is available immediately, while the shopping assistant, which is based on Joule, SAP’s unified copilot, will be released during the first half of 2025.
The shopping assistant is designed to make recommendations and help shoppers find what they are looking for more easily while also helping store associates close sales. Because it can be integrated into the retailer’s ERP system, users can discover specific information, like the current availability of stock.
The new loyalty management application takes data from SAP S/4HANA Cloud and applies AI to create profiles around customers and their shopping behavior and preferences.
Howell identified the customer experience in retail, including product recommendations and helping consumers search, “as areas where retailers can start consuming AI.” She also expects retailers to be early adopters of AI tools to help with their pricing strategies and to use generative AI copilots, including SAP’s offering, to ask questions and get answers immediately—about inventory for example—wherever they are.
While it’s still early days in terms of adoption, almost every retailer presenting in the SAP booth theater at the show said they are preparing to implement AI tools and some said they are already testing AI tools in specific use cases. And SAP’s retail team made it clear at the NRF show that SAP is ready to help.
