In our latest webinar, Teresa met with Brendan Walsh, former Senior Director of Digital Product Management at VF Corporation, to talk about the impact of AI and machine learning (ML) in digital merchandising. The two explored how tech is changing the way retailers approach customer experience — by balancing data and creative touch — and the future of AI-led eCommerce. Read a recap of all the main topics below.
The Growth of eCommerce at VF Corporation
Brendan recounted his early days at VF Corporation as a developer focused on creating custom interfaces for merchandising. Over time, VF grew from a wholesale manufacturer into a major retailer, requiring a major shift in its eCommerce strategy. Brendan mentioned the importance of building a unified platform capable of managing the scale of VF’s online and physical stores.
Through years of growth, VF adopted a philosophy of making incremental technological improvements. This approach allowed them to stay agile while responding to changing consumer behaviors and maturing business needs.
The Balance Between Creativity and Data
A key part of the conversation was the balance between creative strategy and data-driven decisions in digital merchandising. Creativity remains essential for brand identity and customer engagement, but technology and data are increasingly playing a larger role.
Brendan explained that AI in merchandising supports, rather than replaces, the creative process. Automation can handle routine tasks like organizing product listings and gathering insights, allowing merchandisers to focus more on strategic and creative aspects of their work. For example, AI can identify trends in consumer behavior and suggest optimal ways to present products, giving merchandisers the time to fine-tune their offerings and improve customer experiences.
Both Teresa and Brendan touched on the need for businesses to adapt to new laws and technologies while ensuring they meet consumer expectations. It’s not enough to just showcase products creatively — companies also need to integrate the right data to stay competitive.
AI’s Role in Personalizing the Shopping Experience
The role of AI in creating personalized shopping experiences was another central topic. Brendan compared AI’s current use in merchandising to early forms of automation, where rule-based systems follow specific instructions. These systems are useful, but they are just the beginning.
In the future, AI will evolve to create its own rules based on consumer behavior and real-time trends. Brendan shared an example of how AI can prioritize certain products for individual customers, such as showing non-GMO and organic options for health-conscious shoppers. This level of personalization not only improves customer satisfaction but also increases sales by offering more relevant products.
But with AI’s growing influence, challenges remain around how businesses handle customer data. For AI to make accurate recommendations, it needs access to detailed data about consumer behavior. Brendan highlighted the importance of ensuring that this data is used responsibly, without violating customer trust or privacy laws.
Managing Consumer Privacy with AI
Privacy was another critical issue. As AI advances, so do concerns about how companies collect and use customer data. Brendan pointed out that while AI can improve the shopping experience, it needs to be implemented in a way that doesn’t feel intrusive or make customers uncomfortable.
For businesses, this means striking the right balance between personalization and respecting privacy. Brendan emphasized the need for transparency about how data is collected and used. As privacy laws continue to evolve, retailers will need to stay proactive in their approach to data management, ensuring they can provide personalized experiences without overstepping boundaries.
The Future of AI in Merchandising
Both Teresa and Brendan agreed that AI is set to play an increasingly important role in digital merchandising. Beyond improving customer-facing aspects of eCommerce, AI can help streamline operations behind the scenes. For one, AI can automate category creation, analyze real-time sales data, and respond to shifts in demand — all of which reduce the time merchandisers spend on manual tasks.
Brendan predicted that AI will soon go beyond basic automation. In the future, AI will be able to process external factors like weather patterns and consumer trends to predict which products will sell best. This ability to respond to real-time conditions offers huge potential for retailers looking to stay ahead of customer needs.
Collaborating for Innovation
The conversation also explored the importance of collaboration as an innovation driver. Both Teresa and Brendan stressed that companies need to work together — whether it’s partnering with technology providers or other retailers — to build effective digital merchandising solutions.
Brendan shared how AI can further enhance merchandising by recommending A/B testing strategies, creating product categories based on consumer behavior, and even integrating external data sources like weather trends. These capabilities free up time for merchandisers to focus on more strategic tasks, such as improving the overall customer experience.
More than Automation
As the webinar wrapped up, Teresa reinforced the idea of embracing AI in digital merchandising. AI is not just about automating tasks — it’s about enhancing the entire shopping experience and improving business efficiency. Merchandisers who can leverage AI effectively will find themselves ahead of the curve, meeting consumer demands while navigating the complexities of data privacy.
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