AI pricing tool

Savers Value Village has unveiled an innovative AI-powered pricing tool called ThriftIQ, aimed at optimizing product pricing in the competitive thrift segment. The platform, developed in collaboration with data science and technology firm Kaizen Analytix, reduces manual work in pricing apparel for men and women, according to the company's CEO Mark Walsh.

ThriftIQ has already been implemented in 58 pilot stores, handling over 25 million items, with the figure projected to double by year-end. The tool maintains consistent pricing strategies, keeping prices 40% to 70% below traditional retail costs, while also enhancing profitability and sales. Savers, which processes more than 1 billion pounds of reusable goods annually, plans to deploy the platform across more U.S. and Canadian locations through early 2028.

Walsh emphasized that the tool aims to make workers more productive without replacing manual labor. The launch of ThriftIQ aligns with a growing trend in secondhand retail and thrift stores, driven by factors such as inflation, lower consumer confidence, and price-conscious consumers. Savers reported a 7.4% increase in total net sales and a 4.4% rise in comparable store sales in the second quarter, with net income reaching $21.6 million.

The company's CFO Michael Maher highlighted that ThriftIQ is an essential component of the company's long-term strategy, aiming to return to a high-teens adjusted EBITDA margin within the next three years.