Iceland has rolled out new AI-driven inventory and replenishment tools to improve availability, reduce lost sales and strengthen store operations across its estate.

The supermarket said the move is designed to tackle keeping the right products in stock across a large network of stores and distribution centres, while responding quickly to shifts in demand.

By using AI to analyse sales, supply and demand data in real time, Iceland said it can make faster and more accurate replenishment decisions, helping ensure products are in the right place at the right time.

The system is designed to go beyond traditional forecasting by factoring in variables such as seasonal peaks, promotions, new product launches and one-off trading anomalies.

Iceland said that should help operational teams reduce stockouts, limit waste and improve sales opportunities.

Supply chain director Matt Downes said: “AI is giving us the visibility and control we’ve never had before.

“We can now keep shelves consistently stocked with the products our customers want, reduce lost sales and improve the overall shopping experience across every store and distribution centre.”

Iceland said the new platform continuously learns from historical trading patterns and adjusts for lost sales, giving teams more accurate forecasts and clearer guidance at SKU level across the network.

The retailer believes that will allow it to react more quickly to changing customer demand while improving efficiency across its supply chain.

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