How AI Helps Retailers Balance Creativity and Optimization

Fashion merchandising is alive and well. Despite fears of artificial intelligence making e-commerce sites as monotonous and predictable as ChatGPT writing, “In today’s fast-paced world,” fashion websites are as diverse as ever. You have brands like Zara, whose site feels like an extension of a fashion magazine — curated, artistic and aspirational, and others like lululemon, whose site is structured, predictable and designed for easy navigation. Both approaches are strategic. They both convert. And they both can leverage AI to perform at scale.

So, what’s the secret to making such distinct strategies effective? The answer lies in the way these brands use technology to enhance — rather than replace — traditional merchandising.

Editorial vs. Structured: A Reflection of Brand Identity

A brand’s website is an extension of its identity, just like its physical stores. Zara’s website feels like walking into one of its retail locations — it showcases the latest trends and pulls the shopper in to explore and discover new garments, shoes and accessories. The brand’s fast-fashion model means it does smaller runs of inventory and adds new items frequently. According to Zara employees, physical stores get new stock twice a week, and its e-commerce store gets updated daily. That creates a sense of immediacy and exclusivity for shoppers who know an item they fall in love with one minute may be gone the next. Both in-store and online, Zara prioritizes an editorial style that encourages shoppers to explore, linger and be inspired by new arrivals. And this merchandising strategy extends beyond traditional channels. A recent LinkedIn post by LTK Co-Founder and President Amber Venz Box says that within days of launching on LTK, consumers were shopping Zara on the platform every second.

lululemon, on the other hand, takes a more structured approach. Its website mirrors the consistency of its retail stores, where shoppers know they will always find their favorite styles in stock in their preferred sizes, fabrics and colorways. This lets customers purchase exactly what they want — whether it’s a specific cut of leggings or a replacement for a well-loved hoodie — and the site is designed to facilitate their journeys quickly and efficiently.

Both strategies are intentional, and both face unique challenges in execution. An overly editorial approach can make product discovery difficult, while a rigid structure can feel uninspiring and fail to encourage exploration. The key to success is finding the right balance between creativity and optimization — something AI is excellent at.

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The Role of AI in Modern E-Commerce Merchandising

AI-driven merchandising is helping retailers like Zara and lululemon optimize their online stores by providing dynamic, intelligent adjustments in real time. Instead of forcing brands to choose between creativity and efficiency, AI enables them to combine both, tailoring experiences to different shopper behaviors.

Here’s how AI is enhancing both editorial and structured approaches:

1. Personalized Product Discovery
   • AI helps brands like Zara maintain an editorial aesthetic while making products easy to find. Through AI-powered recommendations, e-commerce sites can subtly guide shoppers toward items they’re likely to be interested in based on past browsing behavior, trending styles or similar purchases.
   • For brands like lululemon, AI can help shoppers quickly find what they need by dynamically adjusting search rankings and filtering options based on popularity, availability and personalization data.
2. Automated Merchandising Adjustments
   • Traditional merchandising requires teams to manually arrange products on category pages, often in response to seasonal trends or marketing priorities. AI can automate this process, dynamically organizing products based on factors such as inventory levels, demand and conversion rates.
   • For brands with high inventory turnover, like Zara, AI-driven merchandising ensures that new arrivals are prioritized, while still maintaining the brand’s curated aesthetic.
   • For structured sites like lululemon, AI optimizes product display logic, ensuring that best-sellers and in-stock items appear at the top, while still allowing merchandisers to manually override product display.
3. Real-Time Adaptation to Consumer Behavior
   • AI enables real-time adjustments to product listings based on browsing trends and conversion data. If a particular style of jacket is selling quickly, for example, AI can promote it higher on the page before it’s gone.
   • Conversely, if a product isn’t performing well, AI can automatically adjust its placement or promote a similar item with better engagement.

Finding the Balance Between Automation and Brand Identity

Despite AI’s capabilities, retailers don’t want to relinquish complete control over their merchandising. Brand identity is crucial, and AI should act as an enabler rather than a replacement for human creativity.

Retailers that successfully integrate AI into their merchandising workflows should focus on retaining creative control while leveraging technology for optimization. This creates a balance between brand-driven storytelling and data-driven decision-making. For example, a fast-fashion brand can use AI to maintain an editorial site while ensuring that best-sellers get in front of shoppers. A performance apparel brand may streamline navigation without compromising personalization, and a lifestyle brand can blend editorial elements with structured product displays to offer the best of both worlds.

The Future of AI-Powered Merchandising

The future of e-commerce isn’t about choosing between artistry and automation; it’s about leveraging AI to make traditional merchandising smarter. E-commerce successfully implemented AI years before other industries, which has enabled it to gather intelligence and improve over time. Many brands are already leveraging AI to improve site and sales performance while maintaining a look and feel that aligns with their brand identities.

Retailers that have yet to leverage AI for merchandising and personalization, I’ll leave you with this: AI won’t replace your merchandising team — it will supercharge it. Whether your brand leans toward being editorial, structured or somewhere in between, the right AI tools can help you find the perfect balance between inspiration and efficiency to boost conversion rates and increase customer satisfaction.

Zohar Gilad is the co-founder and CEO of Fast Simon, a site search and merchandising platform for e-commerce.