
"RaftLabs elevated my ideas and brought them to life when everything seemed impossible."
Grady Lakshmono
Co-Founder, Gula (acquired by Runchise)
AI for Retail
Over-stocked on items that don't sell, under-stocked on items that do, and sending the same promotion to every customer regardless of purchase history: these are the margin problems AI addresses in retail. The data to fix them is already in your transaction history and customer records.
We build AI systems for retail: personalised product recommendations, demand forecasting and inventory optimisation, dynamic pricing models, customer churn prediction, visual search, sentiment analysis from reviews, store traffic analytics, and loss prevention. Each system is scoped against your data and a specific revenue or cost target.
Product recommendations trained on your transaction data that increase basket size and repeat purchases
Demand forecasts at the SKU and location level that reduce both overstock costs and lost sales
Churn prediction models that identify at-risk customers before they stop buying
Dynamic pricing models that respond to demand signals, competitor pricing, and inventory levels
Bring the problem, the current workflow, or the existing code. We reply with a practical next step within one business day.
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The brief
Good software decisions begin with the constraint, not a list of features or a preferred technology.
Are your promotions going to your entire customer base because you don't have a reliable way to identify who actually needs an incentive to buy?
Are you carrying stock based on last year's sales patterns while demand signals are shifting in real time?
Plain answer
RaftLabs builds AI for retail across the US, UK, Europe, Canada, GCC, South Africa, and Southeast Asia: product recommendations, demand forecasting, dynamic pricing, and churn prediction. Basket size lifts 5-20% when personalisation replaces static logic. Fixed price after a 1-week discovery phase.
What to remember
An online store used to merchandise one way: pick a handful of bestsellers, pin them to the homepage, and show that same shelf to every visitor, regardless of what they had bought before.
Now a recommendation engine reads each customer's transaction history and returns a ranked, personalised set: next product, cross-sell, replenishment timing. The static bestseller shelf becomes a per-customer shelf, and basket size lifts from the second week.
The widget on the page is the least interesting part. The model underneath it, trained on your own transaction data and re-ranked against margin and inventory, is the product.
The data most retailers need to improve personalisation, reduce inventory waste, and retain customers already exists: transaction history, customer records, product catalogue, and store operations data. The gap is between collecting this data and using it in decisions. AI closes that gap.
This page covers AI for physical stores: POS, shelves, footfall, and inventory across locations. If your business runs entirely online, our AI for e-commerce page covers storefronts, carts, marketplaces, and online orders instead.
According to McKinsey's 2023 retail AI analysis, US retailers that adopted AI saw a 15% average increase in market share compared to non-adopting peers. For retail operators, that gap is compounding each year as personalisation, forecasting, and pricing move from competitive advantage to table stakes.
RaftLabs has a track record spanning AI, SaaS, mobile, and automation across retail, fintech, logistics, and hospitality - including a multi-location retail platform now processing 20,000+ daily transactions. One team scopes the system, builds it, integrates it into your storefront, CRM, or ERP, and hands it over.
Proof
Everything on the left should already be true for your operation. Even one thing on the right, and an off-the-shelf tool is the smarter first step.
You already capture transaction history and customer records, the raw material every model here is trained on.
Enough sales volume that personalisation, forecasting, or pricing moves a real revenue or cost number.
A specific retail metric you want to move: basket size, inventory turnover, churn, or shrinkage, plus budget for a build from $30,000.
Little or no clean transaction history for a model to learn from.
You want an off-the-shelf tool rather than a system built and integrated against your own data.
No single metric in mind yet, so there is nothing to scope the model against.
What we build
Basket size, repurchase rate, inventory turnover, or shrinkage: tell us the number and we will tell you which AI system addresses it and what it costs to build.
How it works
Every project follows the same four phases. Scope is locked and price is fixed before development starts.
We map your transaction data, customer records, and the specific retail metric you need to move. You leave week 1 with a written scope document and a fixed-price quote. No development starts without your sign-off.
We audit your data quality, identify gaps, and design the model architecture before writing production code. Decisions made here cost ten times less than the same decisions made in week 8.
Working models at a staging endpoint by the end of sprint one. Bi-weekly demos. QA runs in parallel with every sprint, not as a phase at the end. Integration with your storefront, CRM, or ERP is part of the scope, not an afterthought.
Production deployment with monitoring activated on launch day. 8 weeks of post-launch support included in every project so you have time to observe model performance in production before you are on your own.
What clients say
Three-year average engagement. Founders and operators describing the work in their own words. No marketing varnish.
Proof

Worxwide, a global digital growth consulting firm, created an app that simplifies communication, lifts productivity, and builds team spirit for hybrid workforces, with 3D meeting rooms and 2D virtual office spaces to replicate office presence.
Where you land in that range depends on scope, not negotiation:
What it costs
A 1-week discovery phase maps your data and the exact model being built, then a firm quote that does not change unless scope changes.
Most retailers start with a single model, prove it against a metric, then fund the next one from what it saves or earns.
Starting investment
Starts at $30,000
Priced after a 1-week discovery phase that maps your data and the model being built. 8 weeks of post-launch support included, and most retailers start with one model before adding the next.
No hourly billing
We scope the work, calculate the cost, and lock it in writing before any development starts. No hourly billing. A scope change is a priced change request, agreed before work begins, never absorbed into the project.
Senior team, compliance built in
The engineers who scope your problem in week 1 are the ones who ship in week 12, no offshore handoff. GDPR, PCI DSS, and data residency are scoped in week 1, not retrofitted before launch. We have shipped GDPR-compliant retail AI for European markets and PCI-compliant integrations for US retailers.
Work with us
Bring the rough workflow, half-built product, or messy brief. We will map the smallest useful first move, then send scope, timeline, and price in plain English.
A product recommendation engine analyses patterns in your transaction data to predict what a customer is likely to buy next. The core technique is collaborative filtering: customers with similar purchase histories tend to buy similar things, so the model uses the behaviour of similar customers to predict what the current customer will want. This is combined with content-based filtering, which recommends products similar to what the customer has already bought, and popularity signals, which ensure new or high-margin items get appropriate exposure. The model is trained on your historical transaction data: what customers bought, when, in what combination. It is updated on a schedule as new transactions come in. The output is a ranked list of recommended products for each customer, personalised rather than the same list for everyone. For online retail, this feeds the recommendation widget. For email marketing, it personalises the product selection in each send. For store operations, it informs product placement and cross-merchandising decisions. Recommendation engines typically lift basket size by 5-20% when personalisation replaces static featured-product logic.
Demand forecasting at the SKU and location level means predicting how much of each specific product will sell at each specific store or fulfilment location over a given time horizon. This is distinct from aggregate category forecasting, which is what most retailers have. SKU-location forecasting is harder because it requires the model to handle long tails of slow-moving SKUs, highly seasonal items with sparse history, and local demand differences that aggregate models smooth over. We use ensemble models that combine historical sales data with external signals: promotional calendars (planned promotions inflate demand and the model needs to account for them), local events, weather where relevant, and competitor pricing signals where available. Output is a daily or weekly forecast per SKU per location with confidence intervals. This feeds directly into your replenishment logic and purchasing decisions, replacing the spreadsheet-based forecasts that most retailers still rely on.
Customer churn prediction for retail works differently from subscription churn because customers don't formally cancel. Instead, they simply stop buying. The model learns to identify the behavioural signals that precede churn: declining purchase frequency, reducing basket size, last purchase recency crossing a threshold, shift from full-price to only promotional buying, and reduction in category breadth. These signals are combined with customer characteristics and segment membership to produce a churn probability score for each customer. Customers above a threshold score enter a retention workflow: a targeted offer, a personalised outreach, or a winback sequence, depending on the customer's value tier and the predicted reason for churn. The key design decision is the intervention threshold: if you intervene with too many customers, you discount customers who would have bought at full price anyway. We tune this threshold against your customer value distribution and promotion cost structure during build.
AI loss prevention in retail typically combines two capabilities. The first is transaction pattern analysis: the model analyses POS transaction data for patterns associated with employee theft or sweethearting, such as excessive voids, high refund rates on specific registers or shifts, transactions below average basket value on specific items, and timing anomalies. This runs on your existing transaction data with no additional hardware. The second capability is computer vision analysis of store camera footage: the model detects specific behaviours such as products being concealed, self-checkout anomalies, and high-traffic area patterns. This requires access to your camera feed and runs locally or via a secure cloud pipeline depending on your infrastructure. Most retail loss prevention AI implementations start with transaction analysis because it uses data you already have and delivers measurable results quickly. We assess which approach fits your data and operational setup during discovery.
Cost depends on the scope of the system and the state of your data. A focused single-model system such as a product recommendation engine or a churn prediction model typically runs between $30,000 and $80,000. A broader retail AI platform covering demand forecasting, personalisation, and dynamic pricing is typically $80,000 to $200,000. We provide a fixed-price quote after a 1-week discovery phase that maps your data, the specific model being built, and the integration work required. Price is locked before development starts and does not change unless the scope changes.
Yes. We sign mutual NDAs before any discovery conversation that involves sharing proprietary transaction data, pricing logic, or customer data structures. We have signed NDAs with clients in the US, UK, Europe, Canada, GCC, South Africa, and Southeast Asia. If your legal team has a standard NDA template, we will work from that. Our standard NDA covers transaction data, model architecture, and any business logic shared during the engagement.
We build a pipeline that takes your product data (attributes, specifications, category, images) and generates brand-consistent product descriptions using LLMs with your brand voice guidelines built into the system prompt. For image-based products (fashion, homewares, food), we use multimodal models that analyze product images as part of the generation context. Output goes through quality review before publishing, human review for new categories, automated publishing for high-confidence outputs in established categories. Generated descriptions can include SEO-optimised headings, bullet points, and feature callouts matching your template structure.
AI retail customer support handles the high-volume, predictable queries: order status (connected to your OMS), return initiation (connected to your returns workflow), product FAQ (sourced from your product data and support knowledge base), and account management. The AI handles what it can confidently answer within your defined scope; complex queries, complaints, and situations outside the defined scope route to human agents with context. Integration with your ecommerce platform (Shopify, Magento, or custom) and order management system is required. The AI layer reduces support contact volume by 40-60% on typical retail support queues.
We integrate with Shopify (Storefront API, Admin API, Product API), Magento (REST API, GraphQL), WooCommerce, and custom ecommerce platforms via REST or GraphQL. For order management, we integrate with OMS systems via API. For email, we connect to Klaviyo, Braze, and Mailchimp. The integration layer is scoped in week 1 as part of the fixed-price quote.