To understand how brands can adapt and survive this new digital age, we sat down with Linda Pimmeshofer, who heads the IT transformation at J.Lindeberg, to discuss the future of Retail. Linda shares insights on everything from digital twins and scrapped silos to why the traditional ”sale” must leave room for new ways.

We talk a lot about the “algorithmic customer journey”, where customers might not even visit a brand’s website anymore, but find inspiration via new AI-driven channels. How are you preparing for this?
It comes down to two things: being found and gathering data. To be found by algorithms, you need incredibly high-quality and consistent product information, including details on fit, usage, and sustainability data. A human cannot write this consistently enough for an AI to read it, so we must use AI to enrich our copy. Simultaneously, we need to pull in customer reviews from across the web, as credibility is more important than ever.

To succeed with such a transition, internal silos must be broken down. How are you handling that challenge?
Most retailers definitely have that challenge. It is important for all functions and in our case all countries to align around common processess and have tools that invites or actually push cross company and function collaboration. To solve this, the IT department acts as a horizontal function that pulls all the threads together. We must move away from old “best-ofbreed” architectures with static integrations – so-called “black pipes” where data is hidden. Instead, we must build a “bestof-suite” environment with agile APIs where data flows freely across the company. You simply cannot layer AI on top of a best-of-breed architecture.

You have come very far in using AI for image production and marketing. Will you be replacing your models with AI now?
We are in frontline here looking to how we can replace simple, flat product “packshots” entirely with AI. Regarding our actual fashion models, we absolutely do not want to remove them; they are unique personalities who build the brand. However, we are exploring how to use digital twins of them to become much more agile. In the future, perhaps a certain percentage of a campaign image will be AI-generated –for example, by having AI swap a simple background for the Alps – but the real human model remains at the centre.

A major problem in the fashion industry is overstock and long lead times. How can AI and data help there?
In the future, I firmly believe successful retailers with keep a large percentage of the range data-driven to give customers exactly what they want, while a smaller percentage is reserved for pure creativity and brand building. To assist designers, who traditionally rely heavily on gut feeling, AI can create visual mood boards based on sales data and competitor activity as a starting point, rather than boring Excel sheets. By planning smarter, we can avoid overstock, which is an absolute must for sustainability. It’s better to sell out of an item than to build up stock. We simply have to scrap discounts and Black Friday, as they only erode the brand.

Finally, looking five to ten years ahead when every company has become hyper-efficient with the help of AI – what could be the competitive advantage for Swedish retailers?
I believe efficiency can be used in many ways. You can use it to cut headcount, or you can use it to make better decisions and free people up for other tasks. We want more people serving our customers. Robots can handle everything else in the background and provide our staff with fantastic information so that the service becomes even better. Ultimately, it’s about protecting what is authentic. The true competitive advantage moving forward will be the mix of being extremely digital and efficient behind the scenes, while simultaneously offering an unbeatable, genuine human presence and service when meeting the customer.

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