Macy's is moving an AI demand-forecasting layer from pilot into broader use in its replenishment operations. Chief operating and financial officer Tom Edwards described the step on a September 10 earnings call. The retailer wants better in-stock levels and lower inventory costs. The work sits inside "Bold New Chapter", a transformation plan launched in 2024. That plan also closed supply chain sites and opened an automated facility in North Carolina. Edwards said supply chain efficiencies should show in the second half of 2026 and help gross margin. He said Macy's enters the fall season in a good inventory position. Other retailers are making similar moves. Target built a digital twin of its middle-mile inventory system, and Lowe's expanded a partnership with Relex Solutions.
What changed
The forecasting capability was running only as a pilot.
What it unlocks
Store and online replenishment decisions guided by AI demand forecasts at wider scale.
- $235 million savings targeted by 2026
- Q2 inventory up 2.5%
Sources