According to analysts of the retailer, the retail chain revenue can grow by 4 billion rubles a year due to the use of artificial intelligence technology.
«Magnit» has completed the testing of the neural network to study the demand for goods. In 2017, the retailer’s revenue increased by 6.37% compared to that figure for 2016 and amounted to 1.14 trillion rubles.
As it was noted in the company, neural networks during the tests allowed analyzing the demand of buyers with great accuracy and, depending on this, to adjust the offer.
According to careful estimates by analysts of the company, the use of neural networks reduces the deficit of products in stores by about 2%. The potential growth in revenue due to the reduction in the deficit of goods could amount to 4 billion rubles a year reducing the amount of write-offs may amount to 5%, which is about 1 billion rubles annually.
The company’s analysts noted that following the results of the successful pilot, «Magnit» plans to introduce an analysis of the entire range of goods using neural networks in late May.
The «Magnit» retail chain was founded in 1994 by Sergey Galitskiy, and it is one of the leading retail chains for food products in Russia. As of March 31, 2018, the company managed 16,625 stores, including 12,283 convenience stores, 242 hypermarkets, 210 Magnit Semeynyi stores and 3,890 cosmetics stores.