BIG names in fashion, including Boohoo and PrettyLittleThing, are making a major AI change and it could lead to surge pricing.
Debenhams Group brands are getting a tech makeover by using artificial intelligence to decide how much items will cost.
But experts have warned it could lead to surge pricing[/caption]
Brands owned by the group are now letting AI set prices in real-time, reacting instantly to trends, demand and what rivals are charging.
The retail giant has teamed up with AI firm Peak to make it all happen.
They reckon this AI system will mean more targeted discounts, so you’re more likely to see deals on stuff you actually want.
It also means the brands can avoid having piles of unsold clothes hanging around.
Dan Finley, chief executive of Debenhams Group, said: “We’ve totally changed how we do pricing.”
“AI helps us make faster, smarter choices, so we can give our customers better value.”
But experts are wary, warning that shoppers could be at the mercy of surge pricing, where AI algorithms automatically raise prices during periods of high demand.
Consumer champion Martyn James warns that “corporate-speak” can obscure the real purpose of these changes.
While the company talks about “automated pricing” and targeted discounts, James points out that “there is also nothing to stop the business increasing prices on demand either.”
He fears that without proper oversight, shoppers could be vulnerable to AI-driven “surge pricing,” as has been seen with hotels and Uber.
Echoing these concerns, consumer expert Scott Dixon believes this is about protecting profits first and foremost.
He said: “The use of AI clearly benefits Debenhams as they can protect profit margins, cut waste and implement surge pricing in-line with increased demand.
“Debenhams needs to show AI is working for its customers, not just shareholders.”
He also warns of potential price hikes during peak shopping periods like Black Friday and Christmas, stating that dynamic pricing is only fair if it works both ways.
Debenhams Group brands
DEBENHAMS Group (formerly known as Boohoo Group) has a whole stable of well-known brands under its umbrella:
- Boohoo: The original online fashion giant known for its trend-led pieces and affordable prices.
- PrettyLittleThing: Another fast-fashion favourite, offering a similar vibe to Boohoo but with its own distinct style.
- BoohooMAN: Bringing the Boohoo formula to menswear, with on-trend clothing and accessories for guys.
- Karen Millen: A more premium brand offering sophisticated and stylish clothing for women, often with a focus on occasion wear.
- Debenhams: The department store itself, now operating as an online marketplace selling a wide range of fashion, beauty, and home products.
The group also owns labels, including Nasty Gal, Coast, Misspap, Oasis, Warehouse, Burton, Wallis, and Dorothy Perkins.
Several retailers, including ASOS and Iconic London, are using AI to make online shopping more interactive.
One example is Nibble, an AI negotiation platform that lets shoppers haggle for discounts before adding items to their cart.
The technology enables a back-and-forth negotiation with a bot, and some users have reportedly secured discounts of up to 40% on ASOS Sample Sale purchases.
The option to negotiate only appears if it’s offered before adding an item to your cart.
In some cases, the feature is timed to pop up when a shopper hesitates over the buy button or seems ready to leave the site.
How to compare prices to get the best deal
JUST because something is on offer, or is part of a sale, it doesn’t mean it’s always a good deal.
There are plenty of comparison websites out there that’ll check prices for you – so don’t be left paying more than you have to.
Most of them work by comparing the prices across hundreds of retailers.
Here are some that we recommend:
- Google Shopping is a tool that lets users search for and compare prices for products across the web. Simply type in keywords, or a product number, to bring up search results.
- Price Spy logs the history of how much something costs from over 3,000 different retailers, including Argos, Amazon, eBay and the supermarkets. Once you select an individual product you can quickly compare which stores have the best price and which have it in stock.
- Idealo is another website that lets you compare prices between retailers. All shoppers need to do is search for the item they need and the website will rank them from the cheapest to the most expensive one.
- CamelCamelCamel only works on goods being sold on Amazon. To use it, type in the URL of the product you want to check the price of.
