Retail’s Reality Check

IHL Group’s study, “How Retailer Leaders Outperform – What We Learned from 400+ Brands,” finds early-adopting retailers of technologies like AI, electronic shelf labels, geolocation, and mobile POS achieve profitability nearly double their peers. Leaders boosted IT spending 56% over five years, realizing major gains in sales growth, efficiency, and customer journey optimization.

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Aptos’ survey, “Making Every Moment Count,” found long checkout lines are the top in-store frustration (63% U.S., 62% U.K.), followed by out-of-stocks. Consumers favor physical stores for tactile experiences and instant purchases. Aptos urges retailers to use mobile POS, omnichannel tools, and unified inventory to improve convenience and loyalty.

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Restaurants like KFC and Taco Bell, part of Yum Brands, are expanding use of AI tools such as Byte Connect, Byte Coach, and Byte Commerce to improve operations, performance, and digital marketing. In contrast, Wendy’s faced backlash over dynamic pricing plans, highlighting customers’ resistance to tech perceived as raising prices.

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Amazon Web Services is expanding its Just Walk Out generative AI-powered frictionless shopping system to over 300 third-party sites across five countries. Recent enhancements include RFID integration, retrofit installations, and payment integration with FreedomPay and Stripe. The platform now supports low ceilings, adaptable layouts, and SaaS-based maintenance for cost-effective scaling.

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Shopify Plus retailers can now use Uber Direct’s white-label delivery service in the U.S., Canada, and France. The integration lets merchants offer one-hour, same-day, or scheduled local delivery directly through Shopify’s checkout and POS systems, enabling real-time tracking and easy management without extra software or training.

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Kroger expanded deployment of Looma-powered in-store digital screens to nearly 600 wine and spirits departments nationwide after strong pilot results. Looma’s retail media network drives 2–4X ROAS through storytelling and personalized recommendations. Looma raised $10M Series B funding led by Staley Capital to scale its 7,000-screen network reaching 27M shoppers monthly.

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Weis Markets is rolling out VoCoVo’s Series 5 Pro headsets, call points, and keypads across stores in seven states to boost real-time communication and customer service. The technology enables employees to make and receive calls directly from their headsets, improving collaboration, efficiency, and responsiveness.

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PayPal Holdings (NASDAQ: PYPL) has applied to establish PayPal Bank, a Utah-chartered industrial loan company. The proposed bank would expand PayPal’s small business lending, offer interest-bearing savings accounts, and join U.S. card networks. Mara McNeill, former CEO of Toyota Financial Savings Bank, will serve as president.

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Medi-Market Group has selected RELEX Solutions’ forecasting and replenishment tools, delivered with partner Supply Chain Company, to modernize inventory planning across its 200 stores and two distribution centers. The implementation enhances product availability, reduces excess inventory, and supports Medi-Market’s rapid European expansion.

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Bikky, a restaurant-focused customer data platform, partnered with Blaze Pizza to unify guest data across its 275+ locations. Using Bikky’s analytics and Demographics tools, Blaze now tracks new vs. returning guests, evaluates promotions, and improves retention, aligning marketing and operations through a single source of truth.

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Best Buy Co. Inc. is expanding its third-party marketplace by partnering with Rithum, enabling U.S. sellers to list products directly through Rithum’s platform. Built on Mirakl, the marketplace enhances automation, pricing, and fulfillment, while offering tools like Best Buy Ads and collaborations with Fanatics for licensed sports merchandise.

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Whole Foods Market, owned by Amazon, will be the first retailer to deploy Mill Commercial’s AI-powered food recycling system in 2027. The solution transforms produce scraps into chicken feed for Whole Foods’ egg suppliers, cutting waste by up to 80%. The project is supported by the Amazon Climate Pledge Fund.

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Fanatics has partnered with e-commerce technology provider Rokt to deploy AI-powered tools—including Rokt Pay+ and Rokt Thanks—across its global digital properties. The integration will personalize offers pre- and post-checkout, enhance fan experiences, and support additional revenue generation across Fanatics’ sports merchandise platform.

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Albertsons Media Collective has introduced “Add-It,” a new off-site advertising technology that lets shoppers add products, recipes, or offers directly to digital carts from external media. General Mills’ Chex brand used the tool for a holiday campaign, enabling one-click cereal purchases that triggered a free limited-edition tin offer.

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Teriyaki Madness launched its first fully AI-generated national ad campaign in partnership with Genre.ai, using AI to create all visuals, voiceovers, and effects. The campaign cut production costs and boosted media reach. TMAD also named Scott Shotter Chief Restaurant Officer to lead operations and growth initiatives.

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Original ChopShop achieved a 94% staff training completion rate using Opus, a video-based platform focused on onboarding and LTO rollouts, reducing turnover below 100% and boosting GM tenure to 4.5 years. The brand also leverages Olo, Curbit, and PreciTaste for digital ordering, kitchen optimization, and operational efficiency.

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Currys has partnered with digital marketing specialist Jellyfish to boost its online search visibility across traditional and AI-powered platforms. Using Jellyfish’s Share of Model tool, One Search approach, and a generative engine optimisation (GEO) programme, the retailer aims to enhance discoverability and make finding technology easier for customers.

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Waitrose is enhancing store operations through two major technology rollouts: Glory’s CI-100X cash recycling devices with Flooid1 software are being installed across UK stores to streamline back-office cash handling, while SOLUM’s Newton Pro electronic shelf labels (ESL) are being deployed nationwide to automate pricing updates by 2026.

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Fashion retailer River Island has chosen Akeneo Product Cloud as its core PIM solution to streamline product data management across its complex tech landscape. The move supports its digital transformation and e-commerce platform. Concurrently, River Island will close 33 stores as part of a restructuring to stabilize the business.

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Calgary Co-op partnered with New York-based CGS Immersive to deploy an AI-powered charcuterie kiosk using the Cicero AI engine. The tool creates personalized charcuterie boards from real-time inventory, boosting deli sales averages from $8 to over $40 and generating up to $70,000 in annual incremental revenue per kiosk.

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Warby Parker and Google announced a collaboration to develop lightweight AI-powered eyewear using Google’s Android XR platform and Gemini AI model, with a 2026 launch planned. The glasses will feature multimodal intelligence and all-day wearability, marking Google’s renewed push into AR alongside partners Samsung and Gentle Monster.

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Instacart partnered with The Home Depot Canada to launch same-day delivery from over 175 stores nationwide. As the first nationwide home improvement retailer on Instacart in Canada, The Home Depot will use Instacart’s Big & Bulky fulfillment solution for heavy-item delivery, offering customers in-store pricing and added shopping convenience.

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Klarna partnered with Canadian furniture brand Cozey to launch its Buy Now, Pay Later solutions—Pay in Full, Pay in 4, and Financing—on Cozey’s online stores in Canada and the U.S. The integration aims to make shopping for Cozey’s modular furniture more flexible, seamless, and affordable for customers.

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Pet Supplies Plus launched its first mobile app to enhance convenience, offering features like biometric login, grooming scheduling, and real-time rewards redemption. The retailer also expanded its gift card program, now available online and through Kroger stores, reinforcing its commitment to customer service and digital-first shopping experiences.

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What Goes Around Comes Around (WGACA) is implementing Digital Wave Technology’s AI-native ONE℠ Platform to replace legacy systems and drive digital modernization. The retailer will use tools for Product Information and Master Data Management, GenAI content creation, and AI-driven merchandising, pricing, and allocation to improve efficiency, margins, and scalability across global operations.

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CarNow expanded Kia EasyBuy to include Dealer.com dealerships, enabling Kia dealers to choose certified digital retailing providers and create a seamless shopping journey from Kia.com to dealer websites. The integration synchronizes customer and deal data, driving consistent leads and connected buying experiences across Kia’s retail network.

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Furniture.com, the AI-powered furniture decision engine, added Kathy Kuo Home, Z Gallerie, and RugsUSA to its retail network. The platform uses AI-driven filtering, conversational tools, and Firmly-powered multi-brand checkout to simplify comparison and purchasing ahead of its Q1 2026 next-gen release, unifying shopping across 77 retailers.

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Italian luxury jeweler Damiani partnered with XY Retail to unify global store operations and client engagement through XY Retail’s cloud-based Retail OS and PoS. Already live in Italy, France, and the Middle East, the platform offers real-time visibility, centralized control, and consistent boutique experiences as Damiani expands across Asia-Pacific and the Americas.

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Sensei has launched Europe’s first fully autonomous healthcare store, Pharma&Go, in Lisbon’s Parque das Nações. Powered by Sensei’s AI and computer vision technology, the 24/7 store enables checkout-free shopping without biometrics or personal data collection. Trigo’s Oliver Baggaley praised the launch as proof autonomous retail is expanding beyond grocery.

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Fanatics will deploy Rokt’s AI-powered ecommerce tools across Fanatics.com plus team and league sites to present highly relevant, exclusive offers before and after checkout. The partnership, featuring Rokt Thanks and Pay+, aims to make shopping more seamless while boosting fan engagement and ecommerce revenue.

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Google upgraded its virtual try-on tool to let U.S. shoppers create full-body try-on images from just a selfie using the Gemini 2.5 Nano Banana flash image AI model. Integrated with Google Shopping Graph, it enables trying clothes from 45 billion listings, enhancing personalization without requiring full-body photos.

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The Bouqs Co. is partnering with Roadie, a UPS company, to offer same-day floral delivery in New York, Los Angeles, and Miami. Using Roadie’s network of 310,000 drivers, Bouqs can meet last-minute holiday demand and deliver premium floral designs beyond its stores while maintaining its sustainable, direct-to-consumer model.

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AI is reshaping food safety for meat and poultry processors by enabling real-time monitoring, predictive analytics, and automation. Vendors like Icicle Technologies, Neogen Corp., and Destination Wagyu use AI tools—such as computer vision, NLP, and smart sensors—to enhance contamination detection, regulatory compliance, and data-driven risk prevention across production and storage processes.

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Construction firm Alquist 3D will 3D print over a dozen new Walmart buildings and other commercial projects in what may be the largest 3D-printed commercial real estate rollout to date. Partnering with materials company Sika, Alquist aims to lower costs and improve sustainability using advanced large-scale 3D printing technology.

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Bershka has launched its first semi-digital jeans in partnership with AR specialist FFFACE.ME, marking its entry into phygital denim for the mass market. A built-in QR code triggers a TikTok filter that reacts to the fabric’s texture, enabling Gen Z creators to turn the jeans into instant, interactive content experiences.

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Klarna has launched its Tap to Pay feature across 14 European markets, turning its app into an NFC-based contactless wallet. The tool lets users set up BNPL plans and pay directly through the Klarna app, building on its debit-first Klarna Card integrated with Visa Flexible Credential technology.

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Red Ant is partnering with luxury retailer Smythson to enhance its in-store experience. Smythson’s IT Director Alexandre Oliveira highlighted the importance of delivering exceptional service, while Red Ant’s Head of Client Success Hannah Ross emphasized the company’s expertise in luxury retail technology.

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Lowe’s rolled out its Mylow Companion AI assistant across 1,700 stores, giving associates real-time product and project data. Home Depot expanded with Magic Apron for DIY planning and Blueprint Takeoffs for AI-generated cost estimates. Procore introduced Helix, which analyzes drawings and automates construction documentation.

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Sports merch giant Fanatics is teaming up with e‑commerce platform Rokt to use AI and deliver more relevant content and offers to fans before and after checkout on Fanatics.com and team/league sites. The retailer is starting with Rokt Pay+ and Rokt Thanks, and plans to expand to Rokt Ads and Rokt Catalog globally across North America, Europe, and Asia‑Pacific.

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Albertsons is partnering with Microsoft to launch an AI skills development initiative for associates across retail, corporate, supply chain, and manufacturing teams. The program includes Copilot immersion experiences, GitHub Copilot training, and unlimited Microsoft certifications, supporting Albertsons’ broader “Customers for Life” AI transformation strategy.

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Winn-Dixie is expanding in-store Amazon return kiosks to 68 more Florida locations, while Shein partnered with Alibris to launch a new online book storefront. Meanwhile, Grubhub integrated Instacart’s grocery network into its app, enabling nationwide grocery ordering and real-time delivery tracking.

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Polish retailer RTV Euro AGD has chosen RELEX Solutions to streamline space and assortment planning across its 350 stores. The implementation will use RELEX’s planogramming and assortment optimization tools to improve category management efficiency, accelerate product updates, enhance shelf utilization, and deliver more tailored customer experiences.

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Amazon is piloting another ultra-fast fulfillment option that blends e-commerce and stores. Here’s a concise summary tailored for the newsletter. Amazon will test a one-hour “rush” in-store pickup service in early 2026, letting shoppers place a single online order that combines Amazon.com inventory with items from Amazon Fresh, Whole Foods Market and Amazon Go for pickup at an Amazon-owned store.

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Waitrose is partnering with SOLUM to deploy Newton Pro electronic shelf labels across all UK stores by 2026. The rollout will cut time spent on manual price updates. SOLUM, a Samsung Electro-Mechanics spin-off, was chosen for its ESL’s durability, performance, and suitability for fast-paced grocery retail.

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Build-A-Bear Workshop has partnered with Uber Direct, Uber’s white label delivery service, to offer same-day delivery across 33 UK stores this festive season. The service, already active in the US, lets shoppers receive plush toys on the day of purchase via scheduled delivery slots, enhancing accessibility and convenience.

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Uber expanded regional offerings in the U.S., adding Stater Bros. Markets, Kowalski’s Markets, and Big Red Liquors to the Uber and Uber Eats apps for customers in Southern California, Minnesota, and the Midwest. In the UK, Uber Eats and Starship Technologies launched autonomous robot deliveries in Leeds, enhancing festive meal and grocery delivery.

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Farmacias Los Hidalgos, the Dominican Republic’s leading pharmacy chain, is implementing RELEX Solutions’ AI-driven forecasting, replenishment, and supply planning tools with support from Demandtex. The rollout aims to automate processes, improve forecast accuracy, and enhance operational efficiency across its 92 stores, distribution center, and 14,000 SKUs.

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URBN, parent of Urban Outfitters, Anthropologie, and Nuuly, will implement Inspectorio’s AI-powered Responsible Sourcing and Compliance, Lab Test Management, and Traceability and Transparency tools to meet global regulatory demands including France’s AGEC law and EU Deforestation rules, streamlining compliance data, supply chain traceability, and automated reporting.

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Disney announced a $1 billion investment in OpenAI and a three‑year deal allowing Sora to generate short, fan‑created videos using over 200 Disney, Pixar, Marvel, and Star Wars characters. Disney will also adopt ChatGPT and OpenAI APIs internally, marking a major AI licensing shift that balances creativity, control, and IP protection.

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Canary Technologies is rolling out its AI Voice technology globally with Wyndham Hotels & Resorts, following a pilot at 700 hotels. The tool integrates with Wyndham’s guest engagement platform to manage calls, texts, and webchats, enabling 24/7 personalized responses and improving booking efficiency for over 8,300 Wyndham franchises.

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Fresh Thyme Market partnered with Foodshed.io to pilot an in-store “farmers-market” concept connecting eight local farms to six Chicago and Indianapolis stores. Using Foodshed.io’s logistics platform, the program enabled 95+ direct farm-to-store deliveries of 27 seasonal varieties, with plans to expand the hyperlocal model next season.

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Hershey Co., led by CIO Gene Kholodenko and CTO Deepak Bhatia, is accelerating digital modernization through SAP S/4 HANA, AI, machine learning, and predictive analytics. These tools enhance demand planning, risk management, and workforce upskilling while promoting data-driven decisions and innovation across Hershey’s multi-category snacking strategy.

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Starbucks is testing a new order-ahead feature to let customers schedule drinks in advance, CEO Brian Niccol said. The tool builds on its smart queue sequencing algorithm and Green Dot Assist AI chatbot, aiming to improve mobile order accuracy, reduce wait times, and streamline barista workflows across its cafes.

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