Blog
The future of retail: Why AI and smarter inventory management will dominate 2025
6 feb 2025
by Matthew Robinson

The old retail playbook is dead, 2025 is here and it’s demanding new strategies from its retail leaders. 

At autone, we’re proud to work with retail brands from around the world–including Chloe, Courrèges, Roberto Cavalli, and Zadig & Voltaire–and one thing we’ve been excited to see in recent months is a clear shift from growth-at-all-costs to profitability-focused retail. Yep, profit’s the name of the game now and with it comes the need for smarter, more intuitive inventory tools. 

That’s why we believe the future of retail belongs to brands ready to toss out old, outdated stock management tactics and embrace innovative new approaches to boosting profits. These are the retail brands no longer content with manual guesswork, but are leveraging AI-driven tools to better manage inventory and build more sustainable, profitable supply chains.

So the question isn’t whether retail will change—it already has—it’s whether you’re ready to keep up by adopting the sharp new tech that actually makes it happen.

Turning stock into a profit engine

At autone, we see it time and time again—brands stuck using outdated, traditional inventory models leading to overstocking, markdowns eating into margins, stockouts, and supply chain chaos. Suffice to say, outdated stock tactics—often completed in spreadsheets, no less–are not going to win you the retail game in 2025. Managing inventory manually is just asking for trouble.

But with AI in the driver’s seat? Now, we’re talking. Far from just being the industry’s most persistent buzzword(!), AI really is the secret sauce helping global retail brands level up their inventory game once and for all.

Don’t believe us? Well, here’s some real-world context: In 2023, excess stock in the fashion industry was estimated to be worth between $70 billion and $140 billion. And in 2024, a third of brands were still struggling with stock imbalances, with luxury giants like LVMH and Kering recording nearly $5.4 billion in excess inventory. The cost of poor inventory management is a huge headache for even the world’s biggest brands.

But just imagine a powerful tool which crunches stock numbers for you based on real time insights, historical sales data, seasonal trends, and your brand’s unique requirements. No more guesswork. No more panic orders or scrambling for stock. No more pivot tables, manual forecasting, or outdated data slowing you down.

Just crystal clear insights about your inventory, including exactly what you need to buy, replenish, reorder, and rebalance to keep on top. 

This is the power of AI-driven inventory. And when you can make smarter decisions, you make more money.

But smarter inventory is about more than just profit

While it’s obvious that poor stock management is costly as hell for any brand, for retail leaders the problem doesn’t just lie in boosting profits. There’s a huge sustainability angle too; something which has never been more important than it is today.

Why? Because 2025 is the year that new regulations like the EU’s Ecodesign for Sustainable Products Regulation will require brands to report unsold stock and prohibit the destruction of unsold goods. This means that brands that use AI to manage inventory more effectively will not just be setting themselves up for long-term profitability, but helping to create a more sustainable future, too.

And we can help with that.

How autone can help you win big in 2025

autone’s four modules work together to drive profitability and sustainability by optimizing inventory management across the supply chain:

  • The Buying module ensures smarter assortment decisions and precise demand forecasting, allowing brands to avoid costly stockouts and overstocking. 

  • The Replenishment module uses real-time data to maintain optimal stock levels across stores, maximizing sell-through rates and minimizing waste. 

  • The Rebalancing module dynamically adjusts stock levels between locations, ensuring the right products are in the right places, enhancing productivity and streamlining operations. 

Finally, the Reordering module optimizes inventory within working capital limits by forecasting demand and aligning reordering decisions with the brand’s unique needs, boosting cash flow and sustainability.

As new sustainability regulations come into play, brands can no longer afford to let excess stock pile up. But with the right AI tools, managing inventory becomes a strategic advantage, allowing you to reduce waste, optimize stock levels, and align with regulatory demands—all while boosting profitability.

The future of retail is happening now, and those who lead with the right tech will be the ones shaping it.

Ready to lead the retail revolution?

Want to learn more about how autone can help you remove the guesswork from stock decisions? We’re always here to chat. Book a demo to explore more.


This is the first post in our latest Profit or Perish series where we uncover the key retail trends that’ll dominate 2025 according to the hottest names in retail. Watch this space for more predictions coming soon.