Summary: 

• AI and connected data are critical for staying ahead in today’s fast-paced and complex retail environment.
• These tools empower teams to spot whitespace, uncover emerging trends, benchmark competitors, and plan campaigns with precision.
• Data-driven insights give retailers a clear competitive edge, enabling faster, smarter decisions and stronger performance in 2026.

As the retail industry closes out 2025, teams are taking stock of a year defined by rapid shifts in consumer behavior, fast-moving trends, and unrelenting competitive pressure. The holiday season offers a moment to celebrate progress, but it also creates space to reflect on what worked, what didn’t, and how to build a smarter approach for the year ahead.

One thing has never been clearer: retailers that embrace artificial intelligence and connected market data are moving faster, making better decisions, and outperforming competitors. These tools give teams a holistic view of the market—what consumers are searching for, where competitors are investing, and which trends are gaining traction. Armed with this intelligence, retailers can reduce risk, identify whitespace earlier, and execute decisions with confidence rather than guesswork.

Below are four of the most impactful areas where AI and connected retail data can help teams work smarter and prepare for a stronger 2026.

1. Smarter Whitespace Analysis

Finding growth opportunities beyond your current assortment is traditionally slow, manual, and often reactive. Retailers rely on historical performance, gut feel, or limited market signals, which means potential opportunities are easily missed. AI changes that dynamic entirely.

By using AI models connected to real-time market and consumer data, retailers can quickly identify gaps across categories, sizes, styles, regions, or customer segments. Instead of waiting for a trend to fully materialize—or worse, relying on lagging internal data—teams can surface whitespace opportunities with precision and much earlier than before.

For example, one retailer analyzed connected trend and sales data and identified rising demand for relaxed-fit activewear across multiple regions. By expanding the category before the competition caught up, they captured early growth and solidified themselves as a trusted destination for the emerging trend. This proactive approach not only reduced risk but also created meaningful revenue upside simply by acting sooner and with more evidence.

2. Trend Identification and Forecasting

Predicting what consumers will want next is one of the most difficult challenges in retail. Trends emerge quickly, fade unpredictably, and shift differently across markets. This is where AI delivers a true competitive advantage.

AI models can detect early signals of emerging microtrends by analyzing data from social platforms, e-commerce sites, competitor assortments, and broader market shifts. Forecasting tools then project which styles, silhouettes, fabrics, and colors are likely to grow—giving design, merchandising, and buying teams a head start.

Consider oversized outerwear: retailers who spotted the rise early were able to scale their assortments heading into winter and maximize sell-through. Those who waited for internal data to confirm the trend entered the market too late, often with insufficient stock or missed opportunity.

AI-powered forecasting replaces instinct-driven decision-making with data-backed clarity. Retailers can better anticipate demand, reduce overbuying and underbuying, and build assortments that resonate with their customers at exactly the right moment.

3. Competitive Benchmarking

Staying ahead of competitors requires constant monitoring across assortment, pricing, promotional strategies, and messaging. But manually tracking those dynamics across multiple markets is nearly impossible. AI and connected retail intelligence automate this process and deliver a comprehensive, real-time view.

With AI-powered competitive tools, retailers can benchmark their assortments to see where they’re over- or under-indexed, monitor competitor price changes and promotions instantly, and understand how product attributes differ across the market. This allows teams to adjust pricing strategies, anticipate promotional moves, and refine product launches with far greater precision.

For instance, by tracking a competitor’s promotional cadence throughout the season, a retailer optimized its own timing and offer strategy. This protected margin while still maintaining competitiveness and driving engagement. Rather than reacting late, they planned proactively—because they had the data to see what was coming.

4. Campaign and Promotion Planning

Planning effective campaigns—especially during peak periods—requires balancing demand generation with margin protection. AI empowers retailers to analyze performance drivers and forecast outcomes so teams can execute promotions with confidence.

Using connected data, retailers can identify their top-performing products and categories, understand which items resonate with specific customer segments, and determine the optimal moments to launch campaigns. 

A recent example comes from a retailer who used AI insights to identify trending accessories gaining momentum across the market. By featuring these items in its back-to-school campaign, the brand saw higher engagement, stronger conversions, and better overall performance—all without resorting to excessive discounting.

Looking Ahead

As retailers plan for 2026, the path forward is clear: teams that leverage AI and connected retail intelligence will move faster, operate smarter, and uncover opportunities competitors overlook. From whitespace analysis and trend forecasting to competitive benchmarking and campaign planning, these tools enable sharper decisions and more profitable outcomes.

The end of the year is an ideal moment to look back at 2025’s lessons and refine your strategy. With the right data and intelligence in place, retailers can enter the new year prepared to navigate uncertainty, capitalize on market shifts, and deliver for their customers with confidence.

Ready to work smarter in 2026? Explore how EDITED’s connected data and AI tools can help your teams uncover opportunities, optimize assortment, and drive growth.  Schedule a meeting with one of our retail experts today.