Macy’s said it will use AI to better manage its inventory after deciding to scale a pilot project that may help reach its goal of generating $235 million in savings by the end of the year.
Tom Edwards, chief operating officer and chief financial officer at Macy’s, said that they are adding an AI tool which will play a key role in “in having the right product in the right place at the right time.”
“We are adding an AI forecast overlay capability to replenishment, moving from pilot to broader execution to improve in stocks and deploy our inventory more efficiently,” he said in a recent earnings call with analysts. “In total, we expect to realize supply chain efficiencies in the second half of 2026, which will benefit gross margins.”
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The major retail player announced an initiative called “Bold New Chapter” in 2024, which included a target to save roughly $235 million in supply-chain related costs by the end of 2026. When the announcement was made two years ago, Macy’s said it was closing approximately 150 “underproductive” locations over the course of that period.
This restructuring effort also included layoffs. At the start of this year, for example, Macy’s announced that it was laying off roughly 1,000 workers as it culled its distribution and store network . As of August, the company reported it has a total of 661 stores, which include luxury brands Bloomingdale’s and Bluemercurcy.
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