SPECIAL REPORT: Retail Innovation Outlook

Technology-led transformation is afoot at food retail, from robots roaming the aisles to provide real-time shelf intelligence, to handheld devices that help associates do their jobs better. Not only is technology becoming more physically present in supermarkets, but it’s also creating more relevant experiences for shoppers both in-store and online. As we look toward the new year and beyond, here are a few of the most important technology innovations poised to turn the tide in the grocery industry.Next-Level Shelf IntelligenceGrocers are increasingly moving artificial intelligence (AI), computer vision and other technology directly to the aisle to keep tabs on inventory, in an effort to boost availability, right-size order quantities, reduce waste, and more. Aisle-roaming robots from San Francisco-based Simbe and San Diego-based Brain Corp. are giving grocers a real-time view of shelf conditions so they can quickly and efficiently deal with out-of-stocks, and Simbe is taking its shelf intelligence one step further with the new Simbe Brand Insights solution.Simbe Brand Insights can equip retailers’ vendor partners, including direct store delivery (DSD) partners, CPG brands, national-brand manufacturers, and smaller brands, with near real-time shelf intelligence and insights on SKU-level shelf availability and out-of-stocks, precise item location, restocking and promotion execution, and more. According to Simbe, vendors can use that data to help improve inventory, product placement, pricing, shelf share and the overall customer experience.“For years, our retail partners have run their businesses with Simbe’s platform’s item-level data, and it’s become clear that this information also has immense value beyond store walls,” says Brad Bogolea, Simbe’s co-founder and CEO. “By sharing store intelligence with vendors, Simbe Brand Insights puts the retail ecosystem on the same side of the table, leading to stronger relationships and performance across the board.” Automated shelf monitoring and gap scanning from VusionGroup’s Captana platform, meanwhile, offer daily reports to grocers to help them streamline operations and reduce inventory management inefficiencies. The French company’s solution can help improve product assortment planning and replenishment while also enabling grocers to keep the products their customers want available in-store and to offer relevant promotions. Enabling Associate SuccessIn today’s challenging job market, it’s becoming more imperative to keep associates appropriately engaged and give them the right tools to help them do their jobs better. Target’s recently launched generative AI-powered chatbot, for example, answers on-the-job process questions, provides coaching and training, and supports store operations. “We know technology will continue to play an outsized role in the future of retail — for our team members, our guests and our business,” says Brett Craig, EVP and CIO at Minneapolis-based Target. “With that in mind, we’re continually experimenting with new tools to make it even easier for our team to do their jobs and to bring more of what guests love about shopping at Target to life. The transformative nature of GenAI is helping us accelerate the rate of innovation across our operations, and we’re excited about the role these new tools and applications will play in driving growth.”Further, Bentonville, Ark.-based Sam’s Club is employing AI- and computer vision-powered task automation that allows employees to spend more time serving customers. Chris Nicholas, the company’s president and CEO, spoke at this year’s Groceryshop conference about how Sam’s Club focuses on people-led technology instead of trying to make technology fit into the company’s operations for its own sake.According to Nicholas, the retailer now employs a system that takes more than 23 million images a day of where all of the inventory is in a club, and then connects to an associate’s personalized device to tell them what their next task is. This year alone, the system will help take 100 million mundane tasks off employees’ shoulders. “The reason that’s important is, I won’t have fewer associates, but now those associates can spend time connecting with members,” Nicholas explained. “They can help them connect on being digitally engaged, they can help them connect with the services that we’re creating. They can help do the work of e-commerce.”Retail Media Hits Its Stride Retail media is a given differentiator in today’s grocery landscape, and it’s entering a new era of efficiency, thanks to AI and automation. Boise, Idaho-based Albertsons Media Collective, for example, has partnered with Capgemini, a French IT services provider and consultancy with offices in New York, to streamline its back-end quality assurance process, and will eventually use this technology to help generate creative assets for its campaigns.“For us right now, the way that we’re applying the AI is through the learning models, so it is more of a learning assistant to find those either repeatable errors in creative, or repeatable processes within media,” explains Albertsons Media Collective Head of Media, Creative and Operations Michelle Weiskittel. “So, it speeds that basic media- planning process up, and that’s really where we’re focusing on our AI, is more productivity and learning to help them [with] those productivity gains.” Audio is also poised to become another key aspect of retail media success. AD Retail Media, the advertising arm of Ahold Delhaize USA, has partnered with Fishers, Ind.-based Vibenomics to offer CPG suppliers enhanced audio solutions to help them engage customers through personalized, real-time messaging that can be customized based on product type, daypart, demographic, and more. Spots play two times per hour within Ahold Delhaize USA stores, including Food Lion, Giant Food, The Giant Co., and Stop & Shop. “Enhanced audio provides even more opportunity for our partners to inspire customers during their shop,” says Bobby Watts, SVP, AD Retail Media. “They also provide increased agility for our partners, because of the speed to market. Through these channels, our partners can respond instantly to what customers are experiencing.”Customer Experience Is KingA superior customer experience is clearly table stakes now and in the future to stay competitive in the industry. “Shoppers have become more discerning, with expectations for convenience, personalization and seamless interactions across every touchpoint,” says Fredrik Carlegren, VP and head of marketing and communications at Durham, N.C.-based Toshiba Global Commerce Solutions. “Grocers must adapt to these evolving needs to build customer loyalty and drive long-term success.” According to Carlegren, grocers must stop treating online and in-store shoppers as separate segments and embrace a holistic approach to doing so by leveraging technology and data insights to better understand customer behavior, preferences and shopping patterns. “Grocers can create more targeted promotions, optimize product recommendations and deliver personalized communications that drive deeper engagement by tapping into these insights,” he says.Eliminating friction for both shoppers and manufacturers will also be key to customer experience success in coming years, Luke Beatty, SVP, digital commerce at Jacksonville, Fla.-based Acosta Group, tells Progressive Grocer. Put simply: “Make it easy. Make it convenient and just eliminate the friction. You have to eliminate the friction, especially if it’s a digital shopper.” Continues Beatty: “We know that people are using their mobile device in-store to aid in their shopping purchases, and they have different motivations for that. Push and partner with the manufacturers to make it frictionless for them to help activate against your vision.”Customer Loyalty Remains ParamountHarnessing loyalty is an important component of creating a great customer experience, especially as today’s shoppers bounce around among stores during their shopping journeys. Cincinnati-based Kroger and other retailers are offering new benefits for loyalty members, such as access to certain streaming services, and St. Ann, Mo.-based Save A Lot just rolled out its first-ever loyalty program. “To keep shoppers engaged, grocery stores must be able to adapt quickly to changing customer behaviors and preferences,” Toshiba’s Carlegren explains. The company’s ELERA Marketing Suite helps push loyalty beyond traditional promotions as it assists in creating a cohesive and frictionless shopping journey that keeps customers coming back. The multichannel enterprise solution enables grocers to deploy a wide range of tailored offers and personalized promotions across various touchpoints to assist in delivering cohesive, meaningful interactions while also centralizing promotion management.

SPECIAL REPORT: Retail Innovation Outlook

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