Dunelm adopts Google Cloud AI for eCommerce strategy

Dunelm, the UK’s leading homewares retailer, has enhanced its online shopping experience through a collaboration with Google Cloud. The retailer has integrated Google Cloud’s advanced generative AI technology, specifically Vertex AI Search for Retail, into its website. This implementation by the retailer aims to modernise its product discovery on Dunelm.com, allowing customers to navigate the extensive product range more efficiently.

In late 2023, Dunelm identified an opportunity to upgrade its first-generation search engine. By transitioning to Google Cloud’s Vertex AI platform, Dunelm is looking to offer a more seamless and personalised shopping experience. With this AI-driven product discovery solution, Dunelm now delivers “Google-quality product discovery,” making it easier for users to find what they need on the site.

John Gahagan, Dunelm’s Chief Technology and Information Officer, highlighted the significance of this partnership, stating, “A key part of our strategy is to improve the ways we connect products to our customers. Partnering with Google Cloud brings innovative generative AI solutions to our online search capabilities, making it much easier for customers to find the products they want.” He added that this move supports Dunelm’s goal to be “The Home of Homes,” by offering an intuitive online experience for customers.

The early testing of this new AI platform in 2024 showed substantial improvements in key performance metrics. Notably, search friction was significantly reduced, with fewer than 1% of search terms returning no results. This improvement has helped reduce customer frustration and increased the chances of users finding the right products.

Tara Brady, President of Google Cloud EMEA, emphasised the value of this innovation for retailers, stating, “Website search abandonment costs retailers millions of pounds annually, as consumers are unable to find the specific products they need. We’re proud to collaborate on this important project to use generative AI to improve consumer experiences and shape the future of retail.”

Why is this important?

Dunelm’s collaboration with Google Cloud marks a major step in the wide-scale use of generative AI in UK retail, enabling Dunelm to offer even more personalised shopping experiences in the future.

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