Why Inventory is Fashion's Achilles’ Heel—And How WAIR.AI Solves it
WAIR's founder Mitch van Deursen tells us why 75% of retail’s problem still stems from mismanaged inventory
Back in the heyday of American retail, in the 90s and early aughts, those of us in a certain age bracket could all agree that hitting the mall (strip or multi-level Simon) was a blast and rarely would you leave empty handed. At Wet Seal, Limited Too, Abercrombie to name a few, we bought outfits straight off the mannequins and matching fits with friends. Today, as I work on building fashion tech in the consumer space (excited to share more soon!), I’ve been asked by investors why I’m not solving for retail tech instead. While retail has faced challenges for years—well before COVID—one glaring issue remains: inventory mismanagement. Too much, too little, or not enough of the right things.
Enter Mitch van Deursen, the entrepreneur behind the innovative tech of WAIR, Retail Geeks. Mitch started WAIR in 2020, where he saw major opportunity for inventory forecasting with the rise of machine learning.
I chatted with Mitch to hear his hot takes on why retail is broken, what AI's impact is on fixing it and how WAIR will make shopping in stores better. Just to preface this convo, I started my career in 2012 as an Inventory Analyst for TJX (TJ Maxx & Marshalls). We calculated how much inventory we ship to stores every Monday morning, manually reading through stacks on stacks of report print outs….
When I saw what WAIR was doing, it felt different from other new retail and planning tools, and I think it’s important to get the word out about this tech in the U.S. market.
Why did you start WAIR?
When I was younger, I bought a company called Shoeby, which is now the largest fashion retailer in the Netherlands, with about 250 stores. Throughout that journey, I focused on products. The industry talks a lot about Amazon and its tech platform blah, blah, but for 90% of retail, the focus is—and should be—on products. Success comes from having the right designs and processes to sell them efficiently. The biggest issue? Inventory management. I believe 75% of the industry’s problems stem from mismanaged inventory. When I learned about deep learning in 2012, I realized we could build a system where 95% of inventory management is handled by machines, leaving humans to manage the 5%, the output.
Can you explain WAIR’s tech in layman’s terms?
ChatGPT understands language; we understand fashion. Our tech predicts what will sell next week and how much, down to the SKU level. We’ve built a unified model using deep learning and transformers, integrating data from all of our clients. Each new client enhances the model, improving forecast accuracy. Right now, our predictions are 69-79% accurate, allowing us to determine exactly what will sell, where, and when. This level of precision changes everything.
What is generative AI giving us?
Generative AI provides an interface to interact with a digital employee. For example, you can ask it to analyze your top 10 stores and send extra products. It’ll identify items in your warehouse, decide what’s worth sending, and handle the process. It’s like having a supply chain assistant who works in real-time.
What do brands and retailers focus on instead of excess inventory?
Too often, they chase growth—expanding to marketplaces, scaling internationally—without fixing their supply chains. This “push-age” approach floods stores with inventory that’s outdated by the time it hits shelves. Adding new brands to try, buying more and more inventory. The result? Stagnant stock flooding store floors.
What does the path forward look like for retail?
Consumers will dictate what works. Retailers need real-time systems to adapt—determining what’s selling, rebuying successful products, and clearing out slow movers. While our technology is advanced, the real challenge is leadership and change management. Companies must shift to operate in real-time, and that requires a mindset change.
Advice for entrepreneurs?
Just start. Begin with a vision and test it on a small scale without over investing. Focus on achieving product-market fit before scaling.
I subscribe to Mitch’s ethos—product is king when it comes to retail stores. Consumers now drive demand, with platforms like TikTok Shop and Instagram ads proving that discovery fuels purchases. The coveted fashion Buyer role is dissolving as retailers have less clout and fewer exciting multi-brand stores exist. Once the gatekeepers of trends and inventory, Buyers are seeing their influence wane as data-driven solutions take center stage. If I were Nordstrom, I’d be racing to integrate WAIR Retail Geeks! Their stores, overflowing with inventory but sparse on shoppers, are a prime example of why this tech is needed. It’s clear that retail’s future as a whole depends on embracing real-time, data-driven solutions.
This is gonna become an industry defining publication on fashion tech, we can’t wait to follow along
Great read 👏👏