Technology has been reshaping the retail industry’s supply chain for centuries, back to 18th century economist Adam Smith’s espousal of division of labor, and continuing with Henry Ford’s moving assembly line.

Today, that technology is artificial intelligence.

“If you take any element of the retail supply chain, there’s going to be an application of AI to it,” said Roy Bahat, who leads Bloomberg Beta, an early-stage venture fund. “It’s a team, between technology and people, and it always has been, but technology used to develop slowly enough that we didn’t really think about it that way.”

In fundamentally shifting the relationship between technology and human workers, the rapid implementation of AI-powered automation is raising important questions about how jobs in design studios, factories, warehouses, shipping centers, and elsewhere in the industry will change. And combined with an e-commerce boom, a supply chain still recovering from the pandemic, and an increasingly tight labor market, this technology is transforming the way retail work works.

Retail’s big picture

Researchers estimate that the robotic automation market will be worth as much as $146 billion in the next decade. Much of that demand is coming from the retail sector, explained Peter Chen, co-founder and CEO of AI robotics company Covariant.

There haven’t been many core mechanical advances in the last few decades, so automation of the types of tasks that require human hands (like picking and packing) reached the limits of the available technology, Chen said.

“Whatever [problems] can be solved with operations plus hardware plus software, they’re solved,” he added. “That’s where AI comes in, to fill in the blanks.”

Keep reading here.—MA

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Alex Todorovic is co-founder and CEO of Arbor, a data science platform that helps brands measure and showcase the environmental impact of their products. Get to know him below.

How would you describe your job to someone who doesn’t work in retail? We use a ton of data and automation to analyze retail brands’ existing supply chains and figure out an accurate estimate of the CO2 emissions that are being produced when making and delivering each of their products. Brands can take this information, know where they stand, and make more conscious, targeted decisions on how to reduce their emissions over time.

One thing we can’t guess about your job from your LinkedIn profile? Sometimes, I equate being a CEO to what it feels like to be a parent: You’ve got a team that needs constant guidance and support. I’ve learned so much about how to work with and lead different personalities and work ethics. It can be overwhelming at times, but it’s worth it.

What’s your favorite project you’ve worked on? During university, one of my current co-founders, Ben Grande, and I worked on an app that digitally mapped out the entire university in 3D and enabled students to find their classrooms indoors much easier. The project was a lot of fun and we’re still quite proud of what we put together.

Which emerging retail trend are you most excited about this year, and why? As consumers, we’re well aware that most products today aren’t necessarily sustainably made. Seeing major brands take a brave step forward and start to engage with their customers in an open and honest way about the sustainability of their products definitely puts a smile on my face!

Keep reading here.—EC

It might not feel like spring just yet, but guess what (checks watch): It is…at least according to the calendar. The other thing the calendar is telling us? It’s the end of Q1, and that means one thing here at Retail Brew: It’s time to put away our sweaters take stock and report on results.

If our most popular stories of the quarter tell us anything it’s that you (dear readers) love good packaging, particularly if it’s iconic. Luxury and tech—AI, specifically—were also of particular interest, as were CPG trends and the big picture out of NRF.

Here’s a rundown of our most-read reporting of the first three months of 2023:

• Package Deal: In 1915, Coca-Cola had many imitators. Then it designed a patented bottle nobody could copy
• The key uses of AI in retail may surprise you
• Here are the CPG trends to expect in 2023
• Key themes we heard from global retail experts at NRF 2023
• Inside Starbucks Odyssey
• Google’s new artificial intelligence solution for retail stores
• What Playboy wants to look like for the Gen Z consumer (hint: not a magazine)
• How luxury is likely to fare in 2023
• The secret behind building Instagram’s favorite luxury lifestyle brand
• Total package: How Apple made unpacking the iPhone a ritual rather than a chore

Join us back here at the end of June when we’ll all find out how topics like resale, customer experience, and pretty much everyone’s retail’s big focus—Gen Z—resonate with Retail Brew readers.

Today’s top retail reads.

Taking on water: Concerns over Philadelphia’s contaminated tap water led to empty shelves at retailers like Acme as residents raced to buy cases of bottled water. (the Philadelphia Inquirer)

For the ages: As millennials inch into their 40s, the generation is looking for clothing options beyond Talbots or Chico’s, presenting an opportunity for new and legacy brands. (Fast Company)

A stitch in time: A look at the history of the US garment labor movement, which has been revitalized with recent legislation like the New York Fashion Act and the FABRIC Act. (Fashionista)

Catch up on the Retail Brew stories you may have missed.

• Retailers are relying on loss-prevention tech to curb shoplifting
• Retail buyers share their changing perspective on Expo West
• Two Albertsons execs share their trade show strategy