#Japan #Fukuoka #Retail Innovation #Hitachi #Hello Day

Revolutionizing Retail Operations with AI

In a groundbreaking initiative, Hello Day, a supermarket chain primarily operating in Fukuoka, Kumamoto, and Yamaguchi, has partnered with Hitachi and Hitachi Solutions West Japan to introduce an innovative AI-driven system aimed at improving operational efficiency across its 49 locations. By implementing Hitachi Digital Solution for Retail, a demand forecasting automatic ordering system, Hello Day achieved a remarkable reduction in total labor hours by 6,837 hours over a month compared to the previous year.

This AI system focuses on standardizing the ordering processes that are often subject to human error, which in turn enhances productivity during staffing shortages. The integration of this technology led to an impressive 7.9% decrease in overtime hours and an 8.4% improvement in employee efficiency.

System Features and Benefits

The advanced system allows for flexible ordering logic tailored to each store's unique layout and product placements. It takes into account approximately 7000 items per store, including daily products, groceries, frozen food, and more, ensuring that the diverse needs of each location are met.

The automated ordering system boasts an order fulfillment rate of over 90%, significantly lowering the out-of-stock rate by 6.99%, which aids retailers in preventing missed sales opportunities. Employees have reported alleviation of stress associated with overordering, proving the psychological benefits of the new system.

Furthermore, Hello Day plans to expand the deployment of this system to six locations of its second brand, Bonlapas, and collaborate with Hitachi on refining the precision of automatic order predictions through the use of generative AI technology.

Diving Deeper into Achievements

With the need for innovations in the face of Japan’s declining workforce due to a decreasing birthrate and aging population, the introduction of this AI system addresses significant challenges faced by the retail sector. Hitachi's experience in implementing such systems across various industries helps to bridge operational gaps that often hinder productivity in supermarkets. Pilot implementations began in January 2024, followed by a full deployment by June 2025, evidencing a thorough validation process.

Hitachi envisions using the data collated from various retail points to contribute to a larger goal of supply chain optimization through its HMAX Industry service. This initiative will gather and analyze data from manufacturing sites to logistics centers and retail environments, pushing towards a future where operations are interconnected, optimized, and automated.

The Bigger Picture

This collaboration highlights how cutting-edge technologies can assist retailers in overcoming contemporary challenges. As Hello Day emphasizes a fun shopping atmosphere through their unique 'Amusement Food Hall' concept, this new system complements its objective of enhancing customer experience while ensuring operational stability.

With 824.8 billion yen in consolidated sales revenue projected for the fiscal year ending in March 2025, Hello Day is poised for significant growth. Its dedicated focus on a unique in-store experience will continue to attract customers while ensuring that the business can adapt to market dynamics through better management practices. In conclusion, the partnership with Hitachi not only demonstrates a commitment to innovation but also sets a benchmark for others in the retail industry to follow suit.

For more details on this innovative service, please visit Hitachi's website.

For inquiries, please reach out to Hello Day's General Affairs Public Relations Department at 093-963-4780 or visit Hitachi Solutions West Japan at Hitachi Solutions West.