Guess? (GES - Free Report) announced plans to enhance consumers’ shopping experience through the introduction of artificial intelligence (AI) in stores. The company, in partnership with Alibaba’s (BABA - Free Report) FashionAI project, is set to launch this unique concept across its stores and thereby set an example in an evolving fashion world.
Smart Stores in the Making
As consumers’ reliance on technology continues to grow, it becomes mandatory for companies to evolve and improve their technological offerings. Guess?, being a leading name in fashion apparel, has been progressing along these lines. The company has collaborated with Alibaba’s revolutionary FashionAI venture. Through the introduction of AI in stores, Guess? will be able to merge online and offline shopping experience.
The concept, which saw its first pilot launch in Hong Kong, clubs Guess?’ strong retail knowledge with Alibaba’s advanced digital capabilities. The latest concept includes the introduction of smart mirrors and racks as well as next-generation trial rooms. Apart from being futuristic, the concept makes good use of analytics to manage inventory efficiently.
Encouragingly, Guess’s partnership with Alibaba, which began in 2013, has been reaping benefits for a while. This is evident from the immense success of Guess? at Tmall, which drove digital sales in China. Going ahead, both Guess? and Alibaba plan to strengthen their ties further and expand their latest FashionAI experience globally.
Bolstering E-commerce: A Vital Growth Strategy
Guess? has been focusing on linking brick-and-mortar stores, e-commerce and mobile sales to improve its online operations. In fact, e-commerce growth in the company’s Europe and Asia segments played a major role in boosting the company’s comps and the top line in first-quarter fiscal 2019.
Further, the company is on track to launch the Guess? Digital Office, an innovation hub directed toward developing new technologies to meet consumers’ demand efficiently. The company is also making constant investments in the digital and social media space, like Weibo and WeChat. These efforts along with the latest project of introducing AI in stores are expected to aid the company to expand customer base and enrich their experience, which will drive sales consistently.
Along with efforts to achieve greater digital inclination, Guess? has also been resorting to store openings, mainly in Europe and Asia. Such initiatives have been driving sales for a while and are tailwinds for the forthcoming periods. Moreover, to augment profits, the company has implemented stringent cost control and margin-growth initiatives. Guess? is also executing its supply chain initiatives through product cost improvements.
These factors along with a favorable view for the second quarter and for fiscal 2019 have boosted investors’ optimism in this Zacks Rank #3 (Hold) stock. Well, Shares of Guess? have rallied 87% in a year compared with the industry’s surge of 43.6%. That said, we expect the company’s well-chalked efforts to drive performance and thereby remain in investors’ good books.
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