Retail in transition: How AI can pave the way to cost savings in 2025

 

Retailers face relentless cost pressures, inflation, supply chain disruptions, and rising labor costs are eroding margins. While direct procurement has been optimized for years, indirect procurement, 10-15% of total revenue, remains an untapped source of savings. AI is transforming cost intelligence, unlocking double-digit reductions and rapid P&L impact.

What Will You Learn in This 2025 Report

  • Key cost drivers in direct and indirect spend and how AI exposes hidden inefficiencies.
  • AI-powered analytics for immediate cost reduction and stronger supplier negotiations.
  • Proven strategies to enhance cost control and secure better contract terms.
  • Case studies from top retailers transforming their cost structures with AI.

Retailers rethinking costs today will gain a competitive edge tomorrow.

Why this 2025 Report Is Essential for Retailers

 This report highlights the three key levers that are critical for cost excellence and immediate impact on the bottom line:

  • Optimizing Direct Procurement – With merchandise expenses making up 60-75% of retail revenue, even small improvements in procurement strategy can unlock significant profitability gains. AI enables better supplier negotiations, cost tracking, and proactive price management.
  • Boosting Process Efficiency – AI-driven automation is reshaping logistics, marketing, and IT, reducing personnel costs and cutting time-to-market for key operations. Savings of up to 16% in marketing and 12-15% in logistics are now within reach.
  • Optimizing Indirect Spend for maximum savings – Indirect costs, often 10-15% of total revenue, are rarely scrutinized but hold double-digit savings potential. AI helps retailers achieve 40% cost reallocation and eliminate hidden expenses in supplier contracts.

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Contact our Retail Expert

Simone Hilbring

Managing Director

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