Advantech iVisionSuite Integrates LLM to Help Retail Malls Increase Revenue

In 2024, the retail industry is facing significant disruptions. Walgreens is abruptly closing 1,200 stores across the U.S., CVS is shutting down 300 locations, and Liberated Brands—the parent company of well-known retailers like Roxy and Quiksilver—has filed for bankruptcy. Macy’s has also announced plans to close 150 stores.

Retailers are grappling with multiple challenges, including labor shortages, high inflation, rising interest rates, and logistical difficulties. However, the most significant threat to traditional retail is the rapid rise of e-commerce. Consumers are increasingly turning to online shopping due to its convenience and competitive pricing, making it difficult for brick-and-mortar stores to compete.

That said, physical retail stores still play a crucial role in the industry. They must adapt to changing consumer expectations by enhancing the in-store experience. A Deloitte survey found that 80% of consumers prefer spending on experiences over goods. Physical stores can leverage this trend by offering unique in-store experiences, immediate product availability, and superior customer service.

Additionally, maintaining a strong online presence alongside physical operations is now essential. According to a study by the International Council of Shopping Centers (ICSC), opening a new brick-and-mortar location can boost e-commerce traffic by up to 37%. To remain competitive, retailers must focus on improving in-store experiences, personalized marketing, and hosting social events to draw consumers back into physical stores.

Advantech’s iVisionSuite: Enabling Seamless Digital Transformation

To support this transformation, Advantech’s AI-powered vision analytics solution, iVisionSuite, enables retail mall operators to enhance customer engagement and optimize business operations.

The VisionSense module within iVisionSuite allows for the rapid deployment of AI-powered image detection and analytics in retail malls. This helps operators monitor foot traffic and occupancy in real-time, leading to better resource allocation, improved efficiency, and increased revenue.

VisionSense AI-Powered Recognition

Advantech’s VisionSense solution offers AI-driven object detection, human recognition, and facial analysis. By combining Advantech’s edge computing hardware with VisionSense software, mall operators can enhance operational efficiency while improving the overall customer experience.

iVisionSuite – People Flow and Occupancy Management

Accurate Foot Traffic Analytics

• The human recognition AI module in VisionSense accurately counts the number of people entering and exiting the mall.  
• Integration with POS data provides deeper insights into business opportunities.

Real-Time Occupancy Monitoring

• Live foot traffic statistics allow for better staff allocation, ensuring high-quality service during peak hours

Queue Optimization

• Identifies visitor movement patterns and congestion points, reducing long queues and improving customer satisfaction.

Crowd Density Control

• Tracks real-time occupancy levels to prevent overcrowding, with instant alerts when limits are exceeded.

All analytics can also be processed through Advantech’s smart analytics platform, CountingBI, an add-on for iVisionSuite. CountingBI records key metrics such as store visit rates and purchase conversion rates. It provides granular foot traffic analysis for specific areas, offering historical comparisons and predictive insights to help retailers make data-driven business decisions efficiently.

AI-Powered Decision-Making with CountingBI & LLMs

Advantech has integrated CountingBI with Large Language Models (LLMs) to enhance AI-driven analytics, enabling mall operators to quickly analyze foot traffic and sales data. This integration follows a three-step framework:

Three-Step Smart Retail Analytics Framework

For example, LLMs can analyze historical foot traffic patterns alongside weather data stored in CountingBI. This allows mall operators to forecast foot traffic trends for the upcoming week. By integrating past weather conditions, foot traffic, and sales data, the system can predict weekly revenue trends, enabling retailers to adjust their business strategies dynamically and set clear KPIs.

KPI Monitoring and Business Insights

CountingBI also includes KPI tracking and performance review features, allowing retailers to:

• Compare sales targets with actual revenue in real-time. 
• Make rapid adjustments to business strategies based on insights. 
• Optimize staffing and marketing efforts using data-driven decisions.

Additionally, CountingBI seamlessly integrates with Power BI, enabling mall operators to correlate foot traffic data with:

• Customer relationship management (CRM) systems 
• Social media marketing data 
• Hashtag analytics

This 360-degree view of consumer behavior empowers retailers to drive business transformation and strategic growth.

The Future of Smart Retail

Retail malls are at a critical stage of digital transformation. Enhancing customer experience and optimizing operational efficiency are now essential for survival in an increasingly competitive market.

Advantech’s AI-powered vision analytics solution, iVisionSuite, combines VisionSense’s precision recognition technology with CountingBI and LLM-powered data analytics, enabling department stores and shopping centers to transition from automation to true smart management.

As AI technology continues to evolve, the retail industry will undergo an intelligent transformation, empowering businesses to stand out and thrive in an ever-changing landscape.

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