Daily Papers

Recently, peoples awareness of online purchases has significantly risen. This has given rise to online retail platforms and the need for a better understanding of customer purchasing behaviour. Retail companies are pressed with the need to deal with a high volume of customer purchases, which requires sophisticated approaches to perform more accurate and efficient customer segmentation. Customer segmentation is a marketing analytical tool that aids customer-centric service and thus enhances profitability. In this paper, we aim to develop a customer segmentation model to improve decision-making processes in the retail market industry. To achieve this, we employed a UK-based online retail dataset obtained from the UCI machine learning repository. The retail dataset consists of 541,909 customer records and eight features. Our study adopted the RFM (recency, frequency, and monetary) framework to quantify customer values. Thereafter, we compared several state-of-the-art (SOTA) clustering algorithms, namely, K-means clustering, the Gaussian mixture model (GMM), density-based spatial clustering of applications with noise (DBSCAN), agglomerative clustering, and balanced iterative reducing and clustering using hierarchies (BIRCH). The results showed the GMM outperformed other approaches, with a Silhouette Score of 0.80.

As retailers around the world increase efforts in developing targeted marketing campaigns for different audiences, predicting accurately which customers are most likely to churn ahead of time is crucial for marketing teams in order to increase business profits. This work presents a deep survival framework to predict which customers are at risk of stopping to purchase with retail companies in non-contractual settings. By leveraging the survival model parameters to be learnt by recurrent neural networks, we are able to obtain individual level survival models for purchasing behaviour based only on individual customer behaviour and avoid time-consuming feature engineering processes usually done when training machine learning models.

Generative AI applications, such as ChatGPT or DALL-E, have shown the world their impressive capabilities in generating human-like text or image. Diving deeper, the science stakeholder for those AI applications are Deep Generative Models, a.k.a DGMs, which are designed to learn the underlying distribution of the data and generate new data points that are statistically similar to the original dataset. One critical question is raised: how can we leverage DGMs into morden retail supply chain realm? To address this question, this paper expects to provide a comprehensive review of DGMs and discuss their existing and potential usecases in retail supply chain, by (1) providing a taxonomy and overview of state-of-the-art DGMs and their variants, (2) reviewing existing DGM applications in retail supply chain from a end-to-end view of point, and (3) discussing insights and potential directions on how DGMs can be further utilized on solving retail supply chain problems.

Developments in IoT applications are playing an important role in our day-to-day life, starting from business predictions to self driving cars. One of the area, most influenced by the field of AI and IoT is retail analytics. In Retail Analytics, Conversion Rates - a metric which is most often used by retail stores to measure how many people have visited the store and how many purchases has happened. This retail conversion rate assess the marketing operations, increasing stock, store outlet and running promotions ..etc. Our project intends to build a cost-effective people counting system with AI at Edge, where it calculates Conversion rates using total number of people counted by the system and number of transactions for the day, which helps in providing analytical insights for retail store optimization with a very minimum hardware requirements.

Most existing robotic manipulation benchmarks focus on simplified tabletop scenarios, typically involving a stationary robotic arm interacting with various objects on a flat surface. To address this limitation, we introduce RoboBenchMart, a more challenging and realistic benchmark designed for dark store environments, where robots must perform complex manipulation tasks with diverse grocery items. This setting presents significant challenges, including dense object clutter and varied spatial configurations -- with items positioned at different heights, depths, and in close proximity. By targeting the retail domain, our benchmark addresses a setting with strong potential for near-term automation impact. We demonstrate that current state-of-the-art generalist models struggle to solve even common retail tasks. To support further research, we release the RoboBenchMart suite, which includes a procedural store layout generator, a trajectory generation pipeline, evaluation tools and fine-tuned baseline models.

Federated learning (FL) enables retailers to share model parameters for demand forecasting while maintaining privacy. However, heterogeneous data across diverse regions, driven by factors such as varying consumer behavior, poses challenges to the effectiveness of federated learning. To tackle this challenge, we propose Privacy-Adaptive Clustered Federated Learning (PA-CFL) tailored for demand forecasting on heterogeneous retail data. By leveraging differential privacy and feature importance distribution, PA-CFL groups retailers into distinct ``bubbles'', each forming its own federated learning system to effectively isolate data heterogeneity. Within each bubble, Transformer models are designed to predict local sales for each client. Our experiments demonstrate that PA-CFL significantly surpasses FedAvg and outperforms local learning in demand forecasting performance across all participating clients. Compared to local learning, PA-CFL achieves a 5.4% improvement in R^2, a 69% reduction in RMSE, and a 45% decrease in MAE. Our approach enables effective FL through adaptive adjustments to diverse noise levels and the range of clients participating in each bubble. By grouping participants and proactively filtering out high-risk clients, PA-CFL mitigates potential threats to the FL system. The findings demonstrate PA-CFL's ability to enhance federated learning in time series prediction tasks with heterogeneous data, achieving a balance between forecasting accuracy and privacy preservation in retail applications. Additionally, PA-CFL's capability to detect and neutralize poisoned data from clients enhances the system's robustness and reliability.

Dynamic pricing in retail requires policies that adapt to shifting demand while coordinating decisions across related products. We present a systematic empirical study of multi-agent reinforcement learning for retail price optimization, comparing a strong MAPPO baseline with a graph-attention-augmented variant (MAPPO+GAT) that leverages learned interactions among products. Using a simulated pricing environment derived from real transaction data, we evaluate profit, stability across random seeds, fairness across products, and training efficiency under a standardized evaluation protocol. The results indicate that MAPPO provides a robust and reproducible foundation for portfolio-level price control, and that MAPPO+GAT further enhances performance by sharing information over the product graph without inducing excessive price volatility. These results indicate that graph-integrated MARL provides a more scalable and stable solution than independent learners for dynamic retail pricing, offering practical advantages in multi-product decision-making.

Over recent years, emerging interest has occurred in integrating computer vision technology into the retail industry. Automatic checkout (ACO) is one of the critical problems in this area which aims to automatically generate the shopping list from the images of the products to purchase. The main challenge of this problem comes from the large scale and the fine-grained nature of the product categories as well as the difficulty for collecting training images that reflect the realistic checkout scenarios due to continuous update of the products. Despite its significant practical and research value, this problem is not extensively studied in the computer vision community, largely due to the lack of a high-quality dataset. To fill this gap, in this work we propose a new dataset to facilitate relevant research. Our dataset enjoys the following characteristics: (1) It is by far the largest dataset in terms of both product image quantity and product categories. (2) It includes single-product images taken in a controlled environment and multi-product images taken by the checkout system. (3) It provides different levels of annotations for the check-out images. Comparing with the existing datasets, ours is closer to the realistic setting and can derive a variety of research problems. Besides the dataset, we also benchmark the performance on this dataset with various approaches. The dataset and related resources can be found at https://rpc-dataset.github.io/.

A critical gap exists between the general-purpose visual understanding of state-of-the-art physical AI models and the specialized perceptual demands of structured real-world deployment environments. We present PRISM, a 270K-sample multi-view video supervised fine-tuning (SFT) corpus for embodied vision-language-models (VLMs) in real-world retail environments. PRISM is motivated by a simple observation - physical AI systems fail not because of poor visual recognition, but because they do not understand space, physical dynamics and embodied action well enough to operate reliably in the world. To this end, PRISM is grounded in a novel three-dimensional knowledge ontology that spans spatial knowledge, temporal and physical knowledge, and embodied action knowledge. It covers 20+ capability probes across four evaluation dimensions - Embodied Reasoning (ER), Common Sense (CS), Spatial Perception (SP), and Intuitive Physics (IP), and to our knowledge, PRISM is the first dataset to instantiate all three knowledge dimensions within a single real-world deployment domain. The corpus captures data from egocentric, exocentric and 360° viewpoints across five supermarket locations and includes open-ended, chain-of-thought, and multiple-choice supervision. At 4 fps, PRISM spans approximately 11.8M video frames and approximately 730M tokens, placing it among the largest domain-specific video SFT corpora. Fine-tuning on PRISM reduces the error rate across all 20+ probes by 66.6% over the pre-trained baseline, with significant gains in embodied action understanding where the accuracy improves by 36.4%. Our results suggest that ontology-structured, domain specific SFT can meaningfully strengthen embodied VLMs for real-world settings. The PRISM dataset and more details are available at https://dreamvu.ai/prism

Accurate demand estimation is critical for the retail business in guiding the inventory and pricing policies of perishable products. However, it faces fundamental challenges from censored sales data during stockouts, where unobserved demand creates systemic policy biases. Existing datasets lack the temporal resolution and annotations needed to address this censoring effect. To fill this gap, we present FreshRetailNet-50K, the first large-scale benchmark for censored demand estimation. It comprises 50,000 store-product time series of detailed hourly sales data from 898 stores in 18 major cities, encompassing 863 perishable SKUs meticulously annotated for stockout events. The hourly stock status records unique to this dataset, combined with rich contextual covariates, including promotional discounts, precipitation, and temporal features, enable innovative research beyond existing solutions. We demonstrate one such use case of two-stage demand modeling: first, we reconstruct the latent demand during stockouts using precise hourly annotations. We then leverage the recovered demand to train robust demand forecasting models in the second stage. Experimental results show that this approach achieves a 2.73\% improvement in prediction accuracy while reducing the systematic demand underestimation from 7.37\% to near-zero bias. With unprecedented temporal granularity and comprehensive real-world information, FreshRetailNet-50K opens new research directions in demand imputation, perishable inventory optimization, and causal retail analytics. The unique annotation quality and scale of the dataset address long-standing limitations in retail AI, providing immediate solutions and a platform for future methodological innovation. The data (https://huggingface.co/datasets/Dingdong-Inc/FreshRetailNet-50K) and code (https://github.com/Dingdong-Inc/frn-50k-baseline}) are openly released.

Shoplifting poses a significant challenge for retailers, resulting in billions of dollars in annual losses. Traditional security measures often fall short, highlighting the need for intelligent solutions capable of detecting shoplifting behaviors in real time. This paper frames shoplifting detection as an anomaly detection problem, focusing on the identification of deviations from typical shopping patterns. We introduce PoseLift, a privacy-preserving dataset specifically designed for shoplifting detection, addressing challenges such as data scarcity, privacy concerns, and model biases. PoseLift is built in collaboration with a retail store and contains anonymized human pose data from real-world scenarios. By preserving essential behavioral information while anonymizing identities, PoseLift balances privacy and utility. We benchmark state-of-the-art pose-based anomaly detection models on this dataset, evaluating performance using a comprehensive set of metrics. Our results demonstrate that pose-based approaches achieve high detection accuracy while effectively addressing privacy and bias concerns inherent in traditional methods. As one of the first datasets capturing real-world shoplifting behaviors, PoseLift offers researchers a valuable tool to advance computer vision ethically and will be publicly available to foster innovation and collaboration. The dataset is available at https://github.com/TeCSAR-UNCC/PoseLift.

Multimodal Large Language Models (MLLMs) have recently achieved substantial progress in general-purpose perception and reasoning. Nevertheless, their deployment in Food-Service and Retail Stores (FSRS) scenarios encounters two major obstacles: (i) real-world FSRS data, collected from heterogeneous acquisition devices, are highly noisy and lack auditable, closed-loop data curation, which impedes the construction of high-quality, controllable, and reproducible training corpora; and (ii) existing evaluation protocols do not offer a unified, fine-grained and standardized benchmark spanning single-image, multi-image, and video inputs, making it challenging to objectively gauge model robustness. To address these challenges, we first develop Ostrakon-VL, an FSRS-oriented MLLM based on Qwen3-VL-8B. Second, we introduce ShopBench, the first public benchmark for FSRS. Third, we propose QUAD (Quality-aware Unbiased Automated Data-curation), a multi-stage multimodal instruction data curation pipeline. Leveraging a multi-stage training strategy, Ostrakon-VL achieves an average score of 60.1 on ShopBench, establishing a new state of the art among open-source MLLMs with comparable parameter scales and diverse architectures. Notably, it surpasses the substantially larger Qwen3-VL-235B-A22B (59.4) by +0.7, and exceeds the same-scale Qwen3-VL-8B (55.3) by +4.8, demonstrating significantly improved parameter efficiency. These results indicate that Ostrakon-VL delivers more robust and reliable FSRS-centric perception and decision-making capabilities. To facilitate reproducible research, we will publicly release Ostrakon-VL and the ShopBench benchmark.

The development of open benchmarking platforms could greatly accelerate the adoption of AI agents in retail. This paper presents comprehensive simulations of customer shopping behaviors for the purpose of benchmarking reinforcement learning (RL) agents that optimize coupon targeting. The difficulty of this learning problem is largely driven by the sparsity of customer purchase events. We trained agents using offline batch data comprising summarized customer purchase histories to help mitigate this effect. Our experiments revealed that contextual bandit and deep RL methods that are less prone to over-fitting the sparse reward distributions significantly outperform static policies. This study offers a practical framework for simulating AI agents that optimize the entire retail customer journey. It aims to inspire the further development of simulation tools for retail AI systems.

Identifying risky traders with high profits in financial markets is crucial for market makers, such as trading exchanges, to ensure effective risk management through real-time decisions on regulation compliance and hedging. However, capturing the complex and dynamic behaviours of individual traders poses significant challenges. Traditional classification and anomaly detection methods often establish a fixed risk boundary, failing to account for this complexity and dynamism. To tackle this issue, we propose a profit-aware risk ranker (PA-RiskRanker) that reframes the problem of identifying risky traders as a ranking task using Learning-to-Rank (LETOR) algorithms. Our approach features a Profit-Aware binary cross entropy (PA-BCE) loss function and a transformer-based ranker enhanced with a self-cross-trader attention pipeline. These components effectively integrate profit and loss (P&L) considerations into the training process while capturing intra- and inter-trader relationships. Our research critically examines the limitations of existing deep learning-based LETOR algorithms in trading risk management, which often overlook the importance of P&L in financial scenarios. By prioritising P&L, our method improves risky trader identification, achieving an 8.4% increase in F1 score compared to state-of-the-art (SOTA) ranking models like Rankformer. Additionally, it demonstrates a 10%-17% increase in average profit compared to all benchmark models.

One of the most fundamental and information-laden actions humans do is to look at objects. However, a survey of current works reveals that existing gaze-related datasets annotate only the pixel being looked at, and not the boundaries of a specific object of interest. This lack of object annotation presents an opportunity for further advancing gaze estimation research. To this end, we present a challenging new task called gaze object prediction, where the goal is to predict a bounding box for a person's gazed-at object. To train and evaluate gaze networks on this task, we present the Gaze On Objects (GOO) dataset. GOO is composed of a large set of synthetic images (GOO Synth) supplemented by a smaller subset of real images (GOO-Real) of people looking at objects in a retail environment. Our work establishes extensive baselines on GOO by re-implementing and evaluating selected state-of-the art models on the task of gaze following and domain adaptation. Code is available on github.

This work presents an unsupervised method for automatically constructing and expanding topic taxonomies by using instruction-based fine-tuned LLMs (Large Language Models). We apply topic modeling and keyword extraction techniques to create initial topic taxonomies and LLMs to post-process the resulting terms and create a hierarchy. To expand an existing taxonomy with new terms, we use zero-shot prompting to find out where to add new nodes, which, to our knowledge, is the first work to present such an approach to taxonomy tasks. We use the resulting taxonomies to assign tags that characterize merchants from a retail bank dataset. To evaluate our work, we asked 12 volunteers to answer a two-part form in which we first assessed the quality of the taxonomies created and then the tags assigned to merchants based on that taxonomy. The evaluation revealed a coherence rate exceeding 90% for the chosen taxonomies, while the average coherence for merchant tagging surpassed 80%.