Invent.ai has been selected by Five Below Inc. (Five Below) to optimize demand forecasting and replenishment through AI-driven technology. By leveraging invent.ai profit-optimization platform, Five Below’s goal is to generate optimal inventory decisions at scale for millions of product-store combinations—resulting in improved inventory productivity.

Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by teens and pre-teens. Currently operating over 1,800 stores in the United States, Five Below is focused on growth. To support its goals, the retailer needed an inventory optimization solution that could account for its diverse product categories and inventory management objectives. Five Below selected invent.ai’s retail planning suite, an AI-driven platform that automates forecasting and decision-making processes to help large retailers optimize inventory levels and maximize profitability.

“Invent.ai has been a game-changer for our operations, helping streamline replenishment processes across a wide range of product categories and a large store network,” said Graham Poliner, Chief Strategy and Analytics Officer at Five Below. “We expect invent.ai’s algorithms to continue to help us optimize inventory levels, reduce stockouts and overstocking while ensuring that each location has the right products at the right time. The invent.ai team has been an exceptional partner, working closely with Five Below to tailor the capabilities to our unique needs.” 

Five Below now utilizes invent.ai’s retail planning platform to position the right inventory at the right locations, in the right quantities, on a daily basis. Key capabilities include: 

• Dynamic demand forecasting: With the power to process enormous amounts of data, the invent.ai platform generates probabilistic forecasts for each store and product combination. These forecasts account for hundreds of variables, including seasonal event data and store, location and product characteristics.
• Profit-optimized inventory decision-making: Using highly accurate, granular forecasts, invent.ai’s solution automatically determines where to position each product to generate the highest incremental revenue.
• Optimized replenishment: The solution automatically determines optimal reorder points and order quantities, replenishing DCs and stores with the right amount of inventory at the right time. Through profit-optimized inventory replenishment decisions, Five Below maximizes inventory turns and availability. 

Notably, invent.ai and Five Below implemented a pilot in just three months across several categories and subsequently expanded to all categories of the business. The partnership will continue beyond implementation through invent.ai’s “Hub Model.” Five Below will now work with a dedicated team of invent.ai’s experts on an ongoing basis to identify opportunities on the scalable, profit-optimizing platform.

“AI is completely reshaping how the retail industry approaches inventory management, and early adopters will be well positioned for financial success. At invent.ai, we’re excited to partner with innovative retailers, like Five Below, and help them leverage our platform to drive profitable growth for years to come,” said Gurhan Kok, Founder and CEO of invent.ai.