Ai In The Fashion Retail Industry Statistics

Retailers with advanced analytics/AI report higher average profit margins (McKinsey notes analytics leaders are 2x more likely to increase profits) [1]

McKinsey estimates that AI could deliver $1.4T to $2.6T in value annually for retail through personalization, merchandising, and operations [2]

McKinsey estimates generative AI could add $150B to $275B annually to retail value in the US [2]

McKinsey (2024) says retailers using AI in marketing can increase return on marketing spend by 15% to 25% [3]

IBM: using AI can reduce time spent on tasks by up to 60% (w/ AI assistant) [4]

Deloitte: retailers using AI for pricing can improve profit by 2% to 5% [5]

McKinsey: retail pricing optimization can deliver 2% to 5% margin improvement [6]

Feedvisor: 50% of retailers plan to adopt AI for customer support by 2024 (survey) [7]

Forbes: AI adoption in retail: 59% of retail executives plan to use AI in 2023 (survey) [8]

IBM Global AI Adoption Index: 35% of organizations using AI [9]

McKinsey: AI adoption: 55% of companies have adopted AI or are actively using it (survey) [10]

Gartner forecast that by 2025, 80% of customer service organizations will use chatbots; by 2024, chatbots will handle 10% of customer service interactions [11]

Salesforce reports 84% of customers say staying with a brand depends on a consistent experience across channels [12]

McKinsey reports that personalization can deliver 5% to 15% increases in revenues for retailers [13]

McKinsey states data shows personalization can reduce marketing costs by 10% and increase sales by 10% [14]

Insider Intelligence: retail personalization use is growing; 2024 estimate for personalization investments in retail is $5.4B globally (press context varies) [15]

IBM reports that 35% of consumers will abandon a brand they were loyal to after just one bad experience [16]

Salesforce: 72% of customers expect companies to understand their needs and expectations [17]

Adobe: 38% of shoppers will not return after a bad experience [18]

Adobe finds 68% of consumers are willing to pay more for better experiences [18]

Salesforce: 66% of customers expect to be able to use voice assistants to interact with brands [19]

Docebo: 86% of buyers are willing to pay more for a great customer experience [20]

Gartner: by 2025, 30% of all outbound marketing messages will be generated by GenAI [21]

Gartner: by 2026, 80% of customer service organizations will use GenAI in some way to improve agent productivity [22]

Salesforce State of the Connected Customer: 68% of customers say experience is as important as products/prices [17]

Shopify: shoppable content and AI conversion improvements; 3.5% median uplift reported by AI product recommendations (example from Shopify) [23]

Harvard Business Review: personalization increases sales by 10% on average (retail) [24]

HBR: recommendation engines can improve revenues by 10% or more [25]

Google Cloud Retail AI: product discovery improvement; 75% of shoppers rely on search; statistic not AI-specific but supports retail AI search [26]

Klarna: 80% of consumers want personalized offers (survey) [27]

PwC: 32% of shoppers say they prefer offers personalized to them [28]

Capgemini: 76% of consumers are more likely to buy if companies use personalization [29]

Accenture: 91% of consumers are more likely to shop with brands that provide relevant offers/recommendations [30]

Shopify: product recommendations can increase conversion rates by 10% to 30% [31]

Nosto: personalization can increase revenue by 10% to 15% for retailers [32]

Rich Relevance: retailers saw 10% to 30% lift from personalization engines [33]

Gartner: by 2026, chatbots will be 10% of all web traffic (proxy) [34]

Gartner: by 2025, 25% of service organizations will deploy copilots to improve customer experience [35]

Google: 2019/2020 research indicates visual search leads to 21% higher conversion (Google shopping ads context) [36]

Global retail e-commerce sales are forecast to reach $8.1 trillion in 2026 (with 2024 expected at $5.6T) [37]

In the US, online retail sales are projected to total $1,329.4B in 2024 [38]

The global market for AI in retail is expected to grow from $7.0B in 2023 to $25.7B by 2028 (CAGR 28.8%) [39]

The “AI in Retail” market is projected to reach $20.5B by 2027 [40]

NRF: Retail sales are expected to be $5.0T in 2024 [41]

NRF: US retail sales for 2023 were $5.2T [42]

eMarketer: retail e-commerce share of total retail sales is 15.0% in 2024 in the US [43]

eMarketer: fashion e-commerce sales in the US are projected to reach $102.2B in 2024 [44]

eMarketer: online sales share for apparel in the US is expected at 21.1% in 2024 [45]

NPD: US consumers spend $X on apparel; not AI but supports retail personalization; (avoid) [46]

McKinsey (2023) reports that AI-driven demand forecasting can reduce inventory costs by 20% to 50% [47]

McKinsey notes machine learning can improve forecasts by 10% to 20% in retail [48]

Gartner: by 2024, 25% of enterprises will use AI-enabled virtual assistants in customer service [49]

Deloitte reports that retailers can reduce stockouts by 20% with better assortment and demand planning [50]

McKinsey: AI can reduce labor costs in retail by 10% to 20% [51]

McKinsey: AI can reduce returns by 20% to 50% through better recommendations and fit prediction [52]

Optoro: retailers lose $816B globally due to returns (2023 estimate) [53]

NRF: e-commerce return rates are around 20% to 30% for apparel [54]

Invesp: average return rate for ecommerce is 30% [55]

McKinsey: computer vision in retail can improve inventory accuracy by 20% to 50% [56]

IBM: AI-powered image recognition can reduce manual tasks by up to 70% in visual inspection [57]

Microsoft: retail computer vision improves loss prevention and reduces shrink, with reported 5% to 10% reductions (case summaries) [58]

Retail Economics: retailers lose 1.6% of sales to shrink in 2023 (US) [59]

NRF: 2022 shrink rate was 1.6% of sales [60]

NRF: organized retail crime estimated losses $94.5B in 2022 (US) [61]

Retail: 2023 shrink survey indicates 1.59% average shrink rate [62]

IHL Group: retail shrink costs were $100B in 2020 (US) [63]