Savers Value Village thrift store launches new AI tool to price items

Savers Value Village is launching a new platform leveraging artificial intelligence to help optimize product pricing, the company told CNBC exclusively, as the tricky-to-price thrift segment gains traction around the world.

The new platform, called ThriftIQ, uses AI to reduce the work needed to price items across the men's and women's apparel assortment and bring more consistency.

"We're getting clear sell-throughs, larger baskets, it's helping our new stores ramp more favorably, and obviously there is the profitability improvements," CEO Mark Walsh told CNBC.

The tool has already been deployed in 58 pilot stores, according to the company, pricing more than 25 million items. That number is expected to double by the end of the year, Walsh added.

Savers, which had 375 stores at the end of the second quarter, said it processes more than 1 billion pounds of reusable goods every year. ThriftIQ was developed in partnership with data science and technology consulting firm Kaizen Analytix using Savers' proprietary data sets, which the company has been developing for nearly two years.

"It's not dynamic pricing, and once those garments are priced and tagged, that tag doesn't change," Walsh said.

The company's goal with the new AI tool is to bring more predictable pricing for customers while also keeping average prices the same or lower, remaining between roughly 40% and 70% below traditional retail prices.

Savers said ThriftIQ marks the latest step in the company's broader strategy to modernize and enhance its business operations. It will deploy the platform across more of its U.S. and Canadian locations through early 2028.