Savers Value Village Launches AI Pricing Tool ThriftIQ Across 58 Stores to Optimize Apparel Pricing

Savers Value Village Deploys AI-Powered Pricing Platform Across Pilot Stores

Savers Value Village has launched ThriftIQ, an AI pricing tool designed to optimize apparel pricing across its thrift store chain network1

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. The AI-powered pricing platform is currently operational in 58 pilot stores across the U.S. and Canada, where it has already processed more than 25 million items across 45,000 retail brands3

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. CEO Mark Walsh told CNBC that the company expects this store count to double by the end of the year, marking a significant expansion of the modernizing thrift retail initiative1

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The thrift store chain, which operates 375 stores and processes more than 1 billion pounds of reusable goods annually, developed ThriftIQ in partnership with data science and technology consulting firm Kaizen Analytix using proprietary data sets accumulated over nearly two years1

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. The platform focuses on men's and women's apparel assortment, aiming to reduce manual pricing work and improve pricing consistency across the network3

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How ThriftIQ Changes Pricing Operations and Addresses Dynamic Pricing Concerns

President and CEO Jubran Tanious explained during the second-quarter earnings call that prior to ThriftIQ, team members would assess each garment and grade it based on condition and quality to determine its value2

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. This subjective method often led to inconsistent pricing, with two employees potentially evaluating the same item differently. Now, workers simply identify the brand identification, and the AI combines that information with seasonality and sell-through data to determine pricing2

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Mark Walsh emphasized to CNBC that "it's not dynamic pricing, and once those garments are priced and tagged, that tag doesn't change"1

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. This statement directly addresses growing consumer concerns about surveillance pricing, with 68% of Americans worried that such practices will increase costs according to May polling2

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. Walsh also clarified that the tool is not meant to eliminate manual labor but to enhance operational efficiency and worker productivity3

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Pilot Results Show Improved Performance While Maintaining Affordability

The pilot stores have demonstrated measurable improvements across key metrics. Walsh reported "clear sell-throughs, larger baskets, it's helping our new stores ramp more favorably, and obviously there is the profitability improvements"1

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. CFO Michael Maher provided specific data during the earnings call, noting that pilot stores achieved gross profit dollar growth approximately 100 basis points higher than non-pilot stores2

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Critically, the company maintains that average prices remain the same or lower than the rest of its fleet, continuing to run 40% to 70% below traditional retail prices3

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. This pricing strategy aims to keep secondhand shopping accessible while optimizing revenue. The results showed customers responding positively through increased unit sell-through, larger basket sizes, and stronger sales yields2

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Financial Performance and Long-Term Strategic Plan Integration

Savers Value Village reported its second-quarter earnings alongside the ThriftIQ announcement, showing total net sales increased 7.4% to $448.2 million1

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. Comparable store sales grew 4.4%, while net income reached $21.6 million, or 14 cents per share, compared to $18.9 million, or 12 cents per share, in the prior-year period3

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. Maher noted the company saw its third consecutive quarter of year-over-year growth in earnings before interest, taxes, depreciation and amortization1

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The company incorporated ThriftIQ's expected impact into its updated 2026 guidance, with Maher telling CNBC that Savers Value Village expects to return to a "high-teens adjusted EBITDA margin within the next three years"3

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. The platform represents one component of a broader modernization effort that includes centralized processing centers, automated book processing, enhanced point-of-sale systems, self-checkout kiosks, and AI-enabled facility management, with full network rollout targeted for early 20283

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. CFO Maher emphasized that "this is just the latest chapter of transformative innovation" and "a core plank of our long-term strategic plan"1

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