Very Group taps UiPath for AI-driven pricing

Retailer The Very Group has teamed up with automation software company UiPath to revamp its pricing strategy using agentic AI, aiming to improve decision-making across its brands. The collaboration reflects a growing trend in retail where businesses seek to leverage advanced technologies to handle complex market trends, particularly in sectors with vast product ranges and fluctuating consumer demand. By integrating AI-driven systems, The Very Group intends to move beyond traditional pricing models that often rely on static rules or historical data, instead adopting a more dynamic and responsive approach.

AI-driven pricing for a catalog of 200,000 products

The three-year deal follows a competitive selection process in which UiPath was chosen to deploy an AI-powered pricing system tailored to The Very Group’s needs. The scale of the project is notable, given the retailer’s catalog of over 200,000 items spanning multiple categories, from fashion and electronics to home goods. Managing pricing for such a diverse inventory manually would require significant time and resources, often leading to delays in adjusting to market changes. The new system is designed to address this challenge by automating key aspects of pricing while providing tools that enhance strategic oversight.

The technology will include campaign simulations, which allow the retailer to model the potential impact of promotional strategies before implementation. This capability enables The Very Group to test different pricing scenarios—such as discounts, bundle offers, or seasonal adjustments—without committing to real-world changes prematurely. Scenario planning further complements this by allowing the company to evaluate how external factors, such as supply chain disruptions or shifts in competitor pricing, might affect sales and profitability. These features are underpinned by AI outputs that are designed to be transparent, ensuring that pricing decisions are not only data-driven but also explainable to stakeholders.

Real-time demand and inventory data will play a central role in the system’s functionality. By continuously analyzing sales patterns, stock levels, and customer behavior, the AI can recommend price adjustments that align with both business objectives and market conditions. For example, if a particular product experiences a sudden surge in demand, the system might suggest a temporary price increase to maximize margin, while also flagging potential inventory shortages that could lead to stockouts. Conversely, if a product is underperforming, the AI could propose discounts or alternative promotional tactics to clear excess stock. This level of responsiveness is particularly valuable in retail, where consumer preferences can shift rapidly due to trends, economic conditions, or external events.

Sam Wright, chief customer and commercial officer at The Very Group, emphasized the strategic importance of pricing in retail success. He noted that the collaboration between the company’s internal expertise and UiPath’s data capabilities would enable The Very Group to adapt more swiftly to evolving consumer behavior. This adaptability is critical in an industry where competitors can quickly replicate pricing strategies, and where customer loyalty is often influenced by perceived value. By reducing the time spent on manual pricing tasks, staff can redirect their efforts toward deeper analysis, such as identifying emerging trends or optimizing product assortments based on AI-generated insights.

Profit margins and stock management in focus

The initiative is expected to deliver measurable improvements in two key areas: gross margin and stock efficiency. Gross margin, a critical metric for retailers, represents the difference between the cost of goods sold and the revenue generated from sales. AI-driven pricing can help optimize this by identifying opportunities to adjust prices in ways that balance profitability with competitiveness. For instance, the system might recommend slight price increases on high-demand items where customers are less sensitive to cost, while suggesting more aggressive discounts on slower-moving products to free up warehouse space and reduce holding costs.

Stock management is another area where the AI system is poised to make an impact. Overstocking ties up capital and increases the risk of markdowns, while understocking can lead to lost sales and dissatisfied customers. The AI’s ability to analyze real-time inventory data alongside demand forecasts allows The Very Group to maintain optimal stock levels across its vast catalog. This is particularly important for a retailer with a wide range of products, as it reduces the likelihood of excess inventory for some items while ensuring availability for others. The system’s visibility into performance and margins also enables more consistent decision-making, as teams across the business can access the same data-driven insights rather than relying on fragmented or outdated information.

Catherine Frame, director of retail solutions at UiPath, highlighted the broader implications of the partnership, noting that agentic AI represents a shift in how retailers approach pricing. Unlike traditional AI systems that operate as “black boxes,” where the reasoning behind decisions is unclear, agentic AI prioritizes explainability. This transparency is key for building trust among employees and stakeholders, as it allows them to understand the rationale behind pricing recommendations. For example, if the AI suggests a price reduction on a particular product, it can provide context such as declining sales velocity, rising inventory levels, or competitive pricing data. This clarity not only facilitates better decision-making but also helps teams learn from the AI’s outputs, improving their own strategic capabilities over time.

The project’s emphasis on transparency also addresses a common criticism of AI in retail: that opaque algorithms can lead to pricing strategies that feel arbitrary or disconnected from real-world conditions. By making the decision-making process visible, The Very Group can ensure that its pricing remains aligned with its broader business goals, whether that means maximizing short-term profits, clearing excess inventory, or enhancing customer loyalty through perceived fairness. This approach is particularly relevant in an era where consumers are increasingly aware of dynamic pricing and may react negatively to what they perceive as unfair or exploitative practices.

The deal establishes The Very Group as an early adopter of agentic AI in retail pricing, positioning it alongside other industry leaders exploring similar technologies. While AI-driven pricing tools have been used in sectors like travel and e-commerce for years, their application in large-scale retail operations remains relatively novel. The size of The Very Group’s catalog and its commitment to transparency set this project apart from many existing implementations, which often prioritize speed over clarity. As the partnership progresses, it could serve as a case study for how agentic AI can be deployed effectively in complex retail environments, offering lessons for other businesses considering similar transformations.

A similar push for operational efficiency in retail is seen in rapid kit delivery services, where retailers are cutting wait times to meet customer expectations. These initiatives reflect a broader industry trend toward using technology to enhance both front-end customer experiences and back-end operational processes, ensuring that businesses remain competitive in an increasingly digital marketplace.