Merchmix launches AI retail platform to address AUD $44bn losses
Merchmix has launched an AI-powered retail platform in Australia to tackle stock inefficiency, a significant margin challenge for retailers.
The Merchmix platform distinguishes itself by employing generative and agentic artificial intelligence capable not only of analysing retail data but also of autonomously acting upon it. The system is designed to process information from more than 200 live data sources, with functionalities including real-time stock level optimisation, automated supplier alerts, purchase order initiation, and live reconfiguration of store layouts.
Australian retailers face substantial financial losses due to inventory distortion, which comprises both overstocks and stockouts. According to data from the National Retail Association and the IHL Group, these inefficiencies cost retailers in Australia over AUD $44 billion every year. Existing legacy retail tools often result in fragmented workflows, with buyers, merchandisers, and store teams operating separately and typically relying on outdated reporting mechanisms or intuition. This fragmentation frequently leads to empty shelves during high-demand periods, excess warehousing, and diminished customer satisfaction.
The core of the Merchmix platform is its real-time retail inference engine, which analyses more than 200 external data streams - including weather conditions, major events, competitor pricing, and prevailing social trends. The platform recalculates its predictions in milliseconds to adjust to changing market conditions.
Other notable features of Merchmix include SKU-level buying recommendations to maintain stock of best-selling products and minimise over-ordering, as well as automated replenishment and purchase order processes to ensure stock availability without manual intervention. The system also offers store layout optimisation, adjusting floor arrangements based on live sales data and observed customer movement patterns. Cross-functional visibility within the platform is intended to align finance, marketing, and operations teams to topline key performance indicators.
The Merchmix platform allows retailers to query in plain language, for example, asking, "Which SKUs will sell out in Sydney this weekend?" or "What happens if we move 15% of inventory online?" Answers and recommended actions are generated and executed automatically using agentic workflows within the software.
Research from McKinsey and Deloitte suggests that retailers deploying AI-driven inventory management can achieve a 10-20% reduction in stock levels and a fourfold return on investment.
"Every country's consumers behave differently - and getting that wrong is expensive," said Nicola Bond, Co-Founder and CEO of Merchmix, who has 18 years' experience in retail and technology, including senior buying roles at ASOS.com, Debenhams, and Best & Less. "With Merchmix, we've built the colleague every retailer wishes they had - one who never sleeps, knows the data inside-out, and helps protect both margin and customer experience."
Aneesh Bond, Co-Founder and CTO of Merchmix, previously worked on the Inditex PLM engineering team and discussed the platform's technical goals. "We've engineered Merchmix for enterprise-grade reliability and real-time performance. Retailers of any size can now get the same agility as the world's largest fashion groups."
Pilots of Merchmix are currently underway with fashion and pharmacy retailers in Australia, the UK, and the US. The company plans to expand into other sectors, such as fast-moving consumer goods (FMCG), pet care, and automotive retail, as part of its broader global rollout strategy.
Merchmix is now accessible to retailers in Australia, as it looks to address the costly problems of inventory distortion and streamline operations across the sector.
