Hardware Retailing The Industry's Source for Insights and Information
Chris Todd
CEO
Theatro
Hardware Retailing (HR): What are some of the practical applications AI has for the independent channel?
Chris Todd (CT): AI has helped transform how retailers serve customers in very real and practical ways, and we’ll see this accelerate even faster in the coming year. It’s beginning to touch every aspect of the customer and worker experience, such as improving the employee onboarding experience, providing real-time access to knowledge, automating customer support or providing recommendations based on in-store behavior captured through cameras and POS systems.
HR: How are you seeing independent retailers using AI right now? How is Theatro helping retailers embrace AI technologies?
CT: One of the biggest opportunities for independent retailers is using AI to equip associates while on the floor. Store workers are the face of your brand and are constantly juggling customer requests, inventory checks, sales transactions and more, all while staying up to date on products and promotions. This is a high-pressure environment that requires quick decision-making and problem-solving.
Theatro developed a mobile communications platform with a generative AI-powered virtual assistant to help retailers address these challenges. Using our in-ear solution, workers are able to have natural, conversational interactions with backend systems, which frees them to focus on the customer–not searching for information or products.
The opportunities are endless: new employees can receive prompts regarding processes, customer questions can get answered more quickly and accurately, associates can boost sales with suggested product recommendations and workers can serve the customer without distraction or interruption. Our retail customers have been amazed by the results.
HR: How are these AI tools helping retailers be more efficient, save money, boost overall operations?
CT: By using AI to address the day-to-day challenges workers face, retailers will very quickly see an impact with efficiency, team satisfaction, worker retention and store operations. There’s also cost-savings from these improvements, but you also need to consider the opportunity of using these same AI tools to boost sales. For example, you could provide workers with suggestions for product recommendations, substitutes for out-of-stock items or info on the latest promotions.
HR: What are the biggest challenges independent retailers face when implementing AI? How can they overcome these challenges?
CT: Many start using AI without fully thinking through the implication or complexity of integrating with current processes and systems, and find their initiatives ultimately fall flat. It’s always best to start with a small-scale pilot program to test the technology’s value. Let your teams start to see the benefits, then build on that foundation.
HR: What should independent retailers be considering when implementing AI?
CT: When implementing AI, independent retailers should think deeply about the problem they’re trying to solve. Are your teams running into operational challenges? Is there confusion about processes? Do associates struggle from having outdated information? Pinpointing the larger issues that hinder your growth will help provide focus to your AI initiative and guide the initial pilot.
HR: What are the emerging AI trends independent home improvement retailers should be on the lookout for?
CT: We’re seeing some exciting AI innovations in retail, and stores are just scratching the surface with experiencing the impact–particularly with generative AI and virtual and augmented reality. Over time, we’ll start to see elements of the digital or online shopping experience enter the physical store as retailers use AI to delight customers with more efficient, interactive and customer-centric experiences.
