Retail’s Reality Check

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AI adoption in enterprises is stalling not from lack of access but from low engagement, argues IHL Group VP of Technology Jerry Sheldon, echoing Palantir CTO Shyam Sankar’s view of AI as a worker tool, not a replacement. Sheldon urges retailers to embed LLMs into recurring workflows and use disliked tasks as an AI testbed, while highlighting future A2A (agent‑to‑agent) commerce as a key opportunity.

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The United Food and Commercial Workers International Union (UFCW) launched its “Affordable Groceries and Good Jobs Campaign” to ban electronic shelf labels (ESLs) and AI-driven “surveillance pricing.” The union says ESLs threaten jobs and fairness, urging lawmakers to mandate paper labels. Walmart, Kroger, Schnucks, H&S Energy, and Kwik Trip have adopted ESLs.

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AI adoption in enterprises is stalling not from lack of access but from low engagement, argues IHL Group VP of Technology Jerry Sheldon, echoing Palantir CTO Shyam Sankar’s view of AI as a worker tool, not a replacement. Sheldon urges retailers to embed LLMs into recurring workflows and use disliked tasks as an AI testbed, while highlighting future A2A (agent‑to‑agent) commerce as a key opportunity.

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US Foods expanded AI features in its MOXē ecommerce platform, enabling photo, PDF, and handwritten note-to-order conversion to boost sales efficiency. It also deployed Descartes routing technology, improving delivery productivity by 2%, and grew its Pronto small-truck service to 46 markets, driving Q4 2025 sales up 3.3% to $9.8 billion.

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Impact Analytics has partnered with European fashion retailer C&A to drive digital transformation across merchandising, planning, and supply chain. C&A will deploy Impact Analytics’ AssortSmart® and MondaySmart® AI tools, along with its size and clustering engine, to optimize assortments, accelerate planning, and enhance data-driven decision-making across its 1,300 stores.

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Edgewell Personal Care Co. is streamlining its U.S. operations following a strategic review, focusing on North American wet shave and five key brands—Schick, Billie, Hawaiian Tropic, Banana Boat and Cremo. The company is optimizing its supply chain with analytics, automation and digital tools after selling its feminine care portfolio to Essity.

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Associated Wholesale Grocers (AWG), the nation’s largest cooperative food wholesaler, has chosen RELEX’s AI-driven forecasting and replenishment platform to replace its legacy systems. The tool will optimize distribution center operations, enhance freshness, reduce waste, improve in-stock positions, and boost sales for AWG’s 1,100 member retailers across 3,500 locations.

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Minky Couture, a Utah-based luxury blanket retailer, is deploying the Domo AI and Data Products Platform to enhance operational visibility. The platform will integrate data across inventory, supply chain, marketing, finance, and store operations, enabling AI-driven insights to improve forecasting, streamline decisions, and support the company’s philanthropic growth.

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Tesco has deployed Reveal Media body cameras, supported by Case Security, across 1,200+ convenience and 180 large stores, and equipped grocery home delivery drivers from 110+ sites. Project Manager Oliver Tebbutt said the initiative enhances safety and uses an internally developed video management system for secure incident handling and sharing.

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Friar Tux launched “Try-On with AI,” an online feature letting customers upload photos to virtually try on suits and tuxedos in about 30 seconds. The formalwear retailer’s new AI tool supports remote wedding and group planning and complements its other digital services like virtual style sessions and at-home try-ons.

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Macy’s “Bold New Chapter” turnaround blends automation, cloud modernization, and AI to cut costs and boost efficiency. Its $640M China Grove robotic fulfillment hub now handles 30% of digital capacity, doubling productivity. Using SAS Customer Intelligence 360, Macy’s tests generative AI for personalization, though leadership admits it’s still early in adoption.

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Walmart’s grocery penetration hit a record 72%, up six points year over year, according to dunnhumby’s Consumer Trends Tracker. The report shows mass-channel retailers—like Dollar General and Dollar Tree—matching supermarkets at 79% penetration, reflecting broad financial strain that’s reshaping U.S. shopping around affordability and promotions.

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UK shopping centre Derbion, managed by Savills, is partnering with Living Map to launch an interactive digital wayfinding solution. Accessible via kiosks, mobile and desktop, the platform helps visitors navigate easily, provides real-time updates on store changes, and delivers analytics to enhance operational efficiency and visitor experiences.

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Las Palapas partnered with Paytronix to modernize its technology stack, launching a new mobile app and LP Club loyalty program as it marks its 40th anniversary. The Paytronix platform integrates online ordering, payments, omnichannel messaging, and AI insights, enabling seamless e-gift cards, targeted promotions, and improved guest engagement.

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REWE has partnered with Cimcorp to open an automated fulfillment center for fresh produce in Oranienburg, serving over 950 stores in the Berlin region. Cimcorp’s warehouse control system manages barcode scanning, depalletising, picking, and shipping, boosting reliability, reducing labor strain, and improving workplace safety and efficiency.

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Evri has deployed Zebra Technologies’ self-service kiosks across 7,000 UK ParcelShops, integrating Zebra ET4 series tablets and ZD600 linerless printers for drop-off, scanning, and labeling. The solution cut service failures by 99%, improved uptime and customer satisfaction, and reduced waste through Zebra’s ZeroLiner eco-friendly printing system.

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Swiss footwear retailer Dosenbach-Ochsner, part of the Deichmann Group, has deployed Exotec’s Skypod robotic intralogistics system at its Luterbach DC, where 100+ Skypod robots serve 174,000 storage locations to supply e-commerce and store orders for Dosenbach, Ochsner Shoes and Ochsner Sport, improving flexibility during demand spikes.

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European fashion retailer C&A is rolling out Nedap’s Inventory Engine to improve omnichannel logistics by giving real-time item-level visibility on e-commerce orders and Click & Collect stock. The RFID-based solution, deployed in C&A’s e-commerce warehouses, automatically assigns pickup status so BOPIS reservations are excluded from store counts, reducing errors and scaling quickly across its network.

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Carrefour is partnering with Vusion to digitalize all its hypermarkets and supermarkets in France by 2030 as part of its Carrefour 2030 plan. The Vusion platform will deploy electronic shelf labels, smart rails, and AI-driven cameras, replacing Pricer as Carrefour’s exclusive ESL supplier and supporting a new AI-focused “Next Retail Experience Centre.”

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Amazon has begun construction on a $54 million, 116,000-sq.-ft. delivery station in Stockton-on-Tees, its first to pursue the Living Future Institute’s Zero Carbon Certification. Using AI analytics, solar panels, recycled steel, and low-carbon materials, the facility will open in 2026, creating about 100 jobs and advancing Amazon’s U.K. sustainability goals.

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OpenAI has begun testing ads in ChatGPT for U.S. users on Free and Go tiers, including a pilot with The Knot Worldwide. The wedding marketplace also launched a ChatGPT app integrating its vendor search tools. The Knot uses OpenAI’s technology alongside its AI features like “Make It Yours” for personalized wedding planning.

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Williams-Sonoma, Inc. joined OpenAI’s Ad Pilot Program, becoming one of the first retailers to test advertising in ChatGPT. The company aims to explore AI-powered product discovery and contextual engagement opportunities, building on its history of using proprietary AI tools across e-commerce, merchandising, supply chain, and customer service.

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Loblaw Companies Limited launched the new PC Express app in ChatGPT, allowing Canadians to shop for groceries directly through ChatGPT using conversational AI. In partnership with OpenAI, Loblaw also adopted ChatGPT Enterprise to boost employee productivity and develop AI tools like Robin for store management and supply chain optimization.

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Unilever is partnering with Google Cloud on a five-year initiative to build an AI-first digital backbone using Google’s Vertex AI and Gemini models. The effort will move all enterprise applications to Google Cloud, streamline marketing operations, and enhance brand engagement through data-driven insights, automation, and agentic workflows.

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White Castle partnered with Interface Systems to deploy its AI-powered Virtual Perimeter Guard at a high-risk St. Louis site, automatically resolving 91% of security events in 30 days. Combining AI detection, live voice deterrence, and strobe lighting, the system eliminated late-night escalations, vandalism, and manual monitoring, boosting employee and customer safety.

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Amazon is enhancing its Rufus AI assistant with new comparison and personalization tools. Amazon’s mobile and desktop shoppers can now use Rufus to compare similar products from any detail page and get “Why you might like this” explanations tailored to their preferences, extending earlier text, visual search, and price-tracking features.

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Ahold Delhaize USA, with ADUSA Distribution and ADUSA Transportation, broke ground on an $860 million automated distribution center in Burlington, N.C., built by Tippmann Group and powered by Witron logistics technology. Opening in 2029, it adds 1 million sq. ft., 500 jobs, and supports brands like Food Lion.

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Utah grocer Harmons is deploying SmartSense by Digi’s SmartSense One platform, combining IoT digital temperature monitoring with Jolt-powered dynamic label printing to enhance food and pharmacy safety. The grocer uses Monitor, Guard, and Label modules to automate compliance, guide corrective actions, improve workflows, and reduce waste.

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White Castle has launched an automated food kiosk at Southwest Florida International Airport (RSW) in Fort Myers, offering hot beef and chicken sliders on demand. In partnership with Just Baked and Evolvending, the fully automated unit serves a curated menu of frozen-to-hot Original, Classic Cheese, Cheddar Bacon Cheese, and Chicken & Cheese Sliders, showcasing airport-focused, vending-led dining innovation.

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Luhta Sportswear Company has chosen RELEX Solutions to replace legacy systems and unify demand planning, purchasing, and inventory management across retail, e-commerce, and wholesale operations. Using RELEX’s machine learning-based forecasting, Luhta aims to improve transparency, reduce stock imbalances, and optimize global product flow for future growth and agility.

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Petco México is expanding its use of RELEX to include space and category management, enhancing store execution and connecting merchandising with forecasting and replenishment. Supported by Athena and Sintec, the rollout will optimize planograms, reduce stockouts, and improve shelf accuracy across more than 157 stores and growing e-commerce operations.

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bb.q Chicken has implemented Deliverect’s digital ordering and menu management platform across 250+ U.S. locations, connecting its Toast POS with marketplaces like Uber Eats, DoorDash, and GrubHub. The integration streamlines menu updates, reduces errors, improves efficiency, and supports scalable multi-channel delivery operations nationwide.

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7-Eleven is expanding its frictionless checkout pilot using AiFi’s computer vision technology in select U.S. stores. Customers scan items via smartphone and pay through Apple Pay, Google Pay, or card at a QR-enabled station. Michael Guzzetta noted convenience formats suit frictionless checkout better than large grocery stores.

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Asos has introduced a hybrid virtual try-on on its iOS app, letting shoppers either upload their own image or use an AI-generated model that reflects their likeness, covering around 10,000 products at launch. Built with AI fashion platform AIUTA, the experience targets select UK and US customers initially, with 4–7 second load times that outperform typical industry tools.

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Heineken advanced its digital transformation with CoBrain, a generative AI-enabled knowledge core that allows brewery workers to instantly access company standards and processes. Part of Heineken’s Connected Worker initiative, the platform links 150 breweries globally and supports diagnostics, energy optimization, and IoT-driven efficiency across brewing and packaging operations.

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Coffee brand Happy is deploying Oracle NetSuite’s AI-powered ERP to automate finance, supply chain, inventory and e-commerce workflows, improving visibility and speeding financial close. Co-founders Robert Downey Jr. and Craig Dubitsky sell Happy through Walmart, Target, Kroger, Albertsons, CVS and Amazon, while also integrating a third-party language model for governed, role-based AI actions.

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Amazon CEO Andy Jassy named horizontal AI agents like ChatGPT, Gemini, Copilot, Perplexity, and Claude as Amazon’s biggest rivals in commerce. Amazon’s Rufus AI and Walmart’s Sparky counter these with retailer-owned data and fulfillment. Meanwhile, OpenAI, Google, Stripe, and Shopify vie to define agentic shopping through competing Agentic and Universal Commerce Protocols.

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Wesfarmers has entered a multi-year collaboration with Google Cloud to deploy agentic AI across brands including Kmart, Officeworks, Priceline, and OnePass. Using Google Cloud’s Gemini Enterprise tools, the partnership aims to enhance personalized shopping, improve customer support, boost team productivity, and deliver AI upskilling for employees.

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Petco has selected Bamboo Rose’s AI-native TotalPLM™ platform, powered by embedded Decision Intelligence, to modernize its retail planning and sourcing operations. The system will streamline collaboration, enhance data-driven decision-making, and support Petco’s agile merchandising and product development initiatives across its sourcing and supply chain processes.

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Adyen partnered with Starbucks to upgrade its payment infrastructure across 943 stores in the UK, Austria, and Switzerland, deploying 2,375 Adyen terminals. Using Adyen’s Store and Forward functionality, Starbucks can process payments during network outages, ensuring operational continuity and enhancing in-store reliability and customer experience.

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Debenhams Group, owner of PrettyLittleThing, boohoo, boohooMAN, Karen Millen, and Debenhams, has partnered with PayPal to launch an AI-driven shopping experience. Using AI tools like Perplexity and Microsoft Copilot, customers can get personalized product recommendations and complete purchases directly in the PayPal app.

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Waitrose has renewed its 20-year partnership with Flooid for another five years to continue using its Point of Sale technology. Additionally, Waitrose is deploying Glory’s CI-100X cash recycling devices, integrated with Flooid1 cash office software, to enhance back-office cash management across its UK stores.

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project44, an AI-powered decision intelligence platform for supply chains, has secured adidas as a customer after eight years of pursuit. Founder Jett McCandless credited the European team’s effort. Recently, project44 added former Uber AI leader Birju Shah as Senior Advisor to strengthen its agentic and reasoning AI-driven supply chain capabilities.

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IRIS reported strong growth with Mandarin Oriental, as its mobile ordering platform boosted F&B room service revenue by 54% and orders by 39% year over year. Now active in 20 hotels globally, IRIS integrates with Mandarin Oriental’s app, POS, and PMS systems to enhance guest experience, streamline staff operations, and drive efficiency.

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IHG Hotels & Resorts won the 2025 Hotel Visionary Award for Guest Experience for its global digital checkout framework. Partnering with Hapi, IHG built a cloud-based, real-time integration layer across 3,600+ hotels and multiple PMS platforms, ensuring contactless, compliant, and consistent guest checkouts worldwide without extra app redevelopment.

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United Natural Foods, Inc. (UNFI) is partnering with RELEX Solutions to overhaul its forecasting using AI and machine learning. The RELEX platform enhances demand planning across UNFI’s 50+ distribution centers, improving collaboration with suppliers and retailers. Half of UNFI’s operations now run on RELEX, emphasizing teamwork, culture fit, and shared predictive insights.

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Amazon Pharmacy will expand same-day prescription delivery to about 4,500 U.S. cities and towns by year-end, adding 2,000 new communities. The service, launched after Amazon’s 2018 PillPack acquisition, builds on partnerships with WeightWatchers for GLP-1 drug delivery and One Medical kiosks for in-person prescription fills.

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Russian online retailer Wildberries launched new AI-powered tools to enhance its marketplace experience. Features include “Video Covers” for animated product listings, “Try It On” virtual fitting rooms for shoppers, and AI-generated “Reviews Summary” that condenses customer feedback, helping both sellers and buyers engage more efficiently across its multi-country platform.

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Uber Eats launched Cart Assistant, an AI feature that builds grocery baskets using text or image prompts. The beta version is live at retailers like Albertsons, Aldi, CVS, Kroger, Safeway, Sprouts, Walgreens and Wegmans. It offers smart recommendations, recipe support, and store-level pricing using OpenAI technology.

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