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Retail Brew // Morning Brew // Update
How retailers are using AI predictive modeling.

Hi hi. Kraft Heinz said this week it’s removing all artificial dyes from its foods amid pressure from Secretary Robert F. Kennedy Jr.’s US Department of Health and Human Services. The company said it’ll remove or replace the colors with natural ones, and, when it can’t, it’ll “reinvent new colors and shades.” This is your sign to take a nostalgic walk through the vibrant Jell-O aisle to pay your respects before it’s too late.

In today’s edition:

—Alex Vuocolo, Patrick Kulp, Erin Cabrey

SUPPLY CHAIN

AI and transportation

Metamorworks/Getty Images

Editor’s note: We’ve teamed up with Tech Brew today for a look at one use case for AI in retail.

Will tariffs increase the business case for AI adoption? It’s a good question. Let’s ask ChatGPT what it thinks.

“Yes, tariffs can strengthen the business case for AI adoption in the retail industry, though the exact effect depends on the nature, scope, and duration of the tariffs,” it said.

The chatbot then went on to explain over several bullet points that tariffs could push retailers to adopt AI in order to accelerate reshoring, optimize supply chains, and forecast changes in demand.

Then again it would say that, wouldn’t it?

To give the arguably biased bot some credit though, a whole cottage industry of companies are now pitching AI-powered business tools as a potential solution to tariffs.

  • To name just a couple, Salesforce recently unveiled its new “always-on” Import Specialist Agent, an autonomous AI agent designed to rapidly process and analyze the 4,400-page US tariff schedule and provide “predictive insights” and “actionable recommendations.”
  • And supply chain management platform Kinaxis just launched an AI-powered modeling tool that allows companies to simulate tariff exposure and generate strategic scenarios to assist with planning.

In such an uncertain economic environment, the business case for any tool promising lower costs and better predictions might seem unimpeachable. But investing in a new technology also comes with risks, and recent data suggests AI is even riskier than other tech investments.

Keep reading here.—AV

Presented by Square-Mastercard

TECH

Shipping boxes arranged in the shape of a large question mark, with floating AI elements surrounding it.

Anna Kim

When retailers plug into Altana’s supply chain management technology, they now have some timely AI-powered controls. They can game out models of how various tariffs could hit different parts of their logistics operations, and maybe renegotiate contracts or switch suppliers as a result, according to Amy Morgan, Altana’s VP of trade.

What Altana doesn’t offer—and what no other AI tool can really promise right now—is a way to confidently predict the future. At a time when a scattershot trade war has thrown global trade into flux, fast-changing policies are testing the limits of AI’s predictive powers.

Keep reading here on Tech Brew.—PK

COMMUNITY

Credit: Katie Diasti

Katie Diasti

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Katie Diasti is founder and CEO of period care brand Viv for Your V.

How would you describe your job to someone who doesn’t work in retail? Viv is a sustainable and toxin-free period care brand with a line of biodegradable and reusable products. We sell online as well as in retail stores. Our brand is providing a truly safe, clean alternative in a category that has lacked a lot of innovation and life on shelf. Viv is spicing up the once very sterile and boring period care aisle with an education-first strategy that makes period care more approachable.

One thing we can’t guess about your job from your LinkedIn profile? ​​When you reach out to customer support, oftentimes you’re talking to me! I like to stay close to every element of our consumer experience from doing in-store demos myself sometimes, keeping track of customer support, and using reviews to help understand iterations our products need.

What’s your favorite project you’ve worked on? Launching Viv in Whole Foods nationwide!

Keep reading here.—EC

Together With Twilio

Retail Brew event promo

Morning Brew

Join Aanan Contractor, VP of Storefront, Fintech & Loyalty at Wayfair, at Rewiring Retail on July 23. She’ll be joined by other industry leaders to unpack how top brands are transforming the digital shopping experience. Don’t miss the strategies driving innovation in e-commerce, loyalty, and customer connection. Get tickets today.

Sephora.com circa October 2000

Sephora.com via Internet Archive Wayback Machine

Before TikTok tutorials and next-day delivery, there was Sephora.com. Launched in 1999, it transformed beauty retail—and helped make e-commerce mainstream. Step back into the early internet days and see how a bold bet became a $3.3b digital empire.

Check it out

SWAPPING SKUS

Today’s top retail reads.

Clicking out: Amazon CEO Andy Jassy said in a memo that the e-commerce giant’s use of AI will lead to a reduction of corporate jobs at the company. (NBC News)

Spend packing: US retail sales dropped 0.9% in May, the Commerce Department said, as tariff-induced anxiety could be leading consumers to cut back on spending. (Bloomberg)

The cap of luxury: Luxury consumers are getting more selective with their spending as concerns over a recession grow. (WWD)

Get your spending sorted: The Square Debit Mastercard is a business debit card allowing users instant access to sales revenue with built-in security features and no fees (ever). Check it out.*

*A message from our sponsor.

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✢ A Note From Square-Mastercard

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