Smart data for the holiday season: How Sheridan’s applied AI research is transforming retail strategy

As the holiday season approaches, Canadian retailers are once again preparing for the busiest shopping period of the year. But despite the national retail sector generating more than $750 billion annually, this year’s market landscape is marked by added pressure from tariff and trade concerns, inflation costs and growing fears of a recession that weakens consumer discretionary spending.

To combat these concerns, brands are recognizing the increasing importance of turning the vast amounts of purchasing and customer data they already have into actionable intelligence. But how? This is a challenge Generator at Sheridan’s Centre for Applied AI is helping to solve through a recent applied research project conducted in partnership with Encore Market Engagement, a Canadian company specializing in field sales, merchandising and strategic consulting for companies like General Mills, Conagra Brands and Maple Leaf Foods.

Led by Dr. Nick Sajadi from the Faculty of Applied Science and Technology and Dr. Haruna Isah from the Centre for Applied AI (CAAI), the research team set out to explore how data-driven models can uncover market insights in a way that traditional analysis cannot. By harnessing the power of artificial intelligence (AI) and machine learning, the team developed a tool that has the potential to reshape the decision-making process across the retail sector — enabling brands to improve profits by better meeting customer expectations, reducing environmental impact and staying competitive in a dynamic marketplace.

These kinds of AI-driven tools will be particularly valuable during the high-demand holiday period, when efficiency and precision are critical. By accurately predicting sales and recognizing which products perform best in particular markets, brands can align inventory with customer demand. This will help to reduce overstocking, which in turn minimizes waste and reduces lost sales opportunities. The results? A more sustainable and responsive retail ecosystem that benefits both businesses and consumers.

“Our goal with this project was to build a tool that not only uncovers patterns but also provides insights  that businesses can act on immediately.”

– Dr. Haruna Isah, Associate Director, Sheridan's Centre for Applied AI

Supported by a Natural Sciences and Engineering Research Council of Canada (NSERC) Applied Research and Development grant, the project studied both Encore Market Engagement’s proprietary datasets and open-source demographic and municipal data to identify meaningful trends in product performance and consumer behaviour.

Using techniques such as clustering algorithms and association rule mining, the team revealed how interactions between product groups influence purchasing patterns. These insights enable brands to design more strategic promotions, optimize shelf layouts, and improve market segmentation. To make the data accessible to decision-makers, researchers also developed an interactive dashboard that translates complex data models into clear, actionable intelligence.

“As a nationally recognized leader in applied AI research, Sheridan understands the importance of using AI to translate advanced analytics into practical solutions — and how those solutions have the power to transform industry,” said Dr. Isah. “Our goal with this project was to build a tool that not only uncovers patterns but also provides insights that businesses can act on immediately — supporting our partner’s innovation needs and driving the future of retail sector.”

Preliminary results from the project also point to the strong potential of predictive analytics in anticipating future market shifts. By identifying emerging trends early, brands can better prepare for surges in demand, adapt pricing strategies and ensure that supply chains remain agile throughout the busiest seasons.

“By converting complex data into clear, actionable guidance, our customers can make smarter decisions faster, strengthen their competitiveness and future-proof their operations against market volatility.”

– Brian Vanstone, Partner - Corporate Operations, Encore Market Engagement

“The future of retail will be defined by how effectively companies can turn information into intelligence, and intelligence into revenue. Investments in applied research accelerate that transformation by giving businesses access to tools, talent and insights that would otherwise be difficult and costly to implement,” shared Brian Vanstone, Partner - Corporate Operations at Encore Market Engagement. “Sheridan’s work with our organization demonstrates just how powerful research partnerships can be: by converting complex data streams into clear, actionable guidance, our customers can make smarter decisions faster, strengthen their competitiveness and future-proof their operations against market volatility.”

For Sheridan, this collaboration highlights how applied research can translate advanced technologies into practical innovations that enhance business performance and support economic growth. And in the fast-paced world of retail, the ability to transform data into decisions is invaluable — especially during the holidays, when every choice matters and every insight can influence the bottom line. Because success today is not driven by intuition alone — it is driven by intelligence, innovation and the strategic application of data that turns challenges into opportunities and insights into dollars.

Interested in learning more about how Generator at Sheridan developing innovation solutions for today’s most pressing challenges? Visit sheridancollege.ca/generator