economy
Savers Value Village thrift store launches new AI tool to price items
Savers Value Village is launching a new AI pricing tool to keep product prices consistent and low, the company told CNBC exclusively.
TL;DR
- Savers Value Village is launching a new AI platform named ThriftIQ to optimize product pricing.
- ThriftIQ aims to reduce manual work, increase consistency, and improve sell-throughs and profitability.
- The tool has been piloted in 58 stores, pricing over 25 million items, with plans to double this by year-end.
- Savers processes over 1 billion pounds of reusable goods annually across its 375 stores.
- ThriftIQ was developed in partnership with Kaizen Analytix using Savers' proprietary data.
- The pricing is not dynamic, and tags remain unchanged once items are priced.
- The goal is predictable pricing, remaining 40% to 70% below traditional retail prices.
- The platform will be deployed across more U.S. and Canadian locations by early 2028.
- The tool is intended to increase worker productivity, not eliminate manual labor.
- The secondhand retail market is surging due to inflation and price-conscious consumers.
- Savers reported a 7.4% increase in total net sales for the second quarter, reaching $448.2 million.
- Net income for the quarter was $21.6 million, or 14 cents per share.
- The company expects to return to a high-teens adjusted EBITDA margin within three years.