Retail’s Reality Check

SAP SE unveiled a new generation of AI-driven retail innovations at NRF 2026, integrating AI across its SAP Business Data Cloud, SAP S/4HANA Cloud Public Edition, and SAP Commerce Cloud. Tools like Retail Intelligence, Joule copilot, and Order Reliability Agent streamline planning, pricing, fulfillment, and omnichannel engagement to boost retail speed, efficiency, and loyalty.

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Microsoft is advancing ERP automation toward autonomy with its agentic business applications built on data, Copilot, and agents within Dynamics 365 and Microsoft Cloud. Partners like RSM, HSO, Cegeka, Factorial, and Zensai extend this with industry-specific agents that automate finance, supply chain, and operations workflows through coordinated agent-to-agent interactions.

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Everseen unveiled Everact, an AI-driven retail intelligence prototype debuting at NRF 2026. Built on Everseen’s Vision AI platform, Everact enables teams to query store data conversationally, retrieve curated video evidence, and receive recommended actions. Retailers can co-develop the solution through pilot collaborations starting in Q2 2026.

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LVMH is advancing its “AI for All” transformation across its 75 maisons, using AI to enhance rather than replace human creativity. At the NRF Big Show with PwC, executives from LVMH and Louis Vuitton highlighted AI tools that empower client advisors and personalize client experiences while maintaining each maison’s unique identity and responsible AI governance.

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Woolworths has partnered with Google to integrate the Gemini AI platform into its Olive chatbot. The upgrade will let Olive plan meals and, with consent, add items to online baskets but not complete purchases. The partnership follows similar Google retail deals, including one with Papa Johns.

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In-Store Marketplace (ISM) partnered with WHSmith North America Media Network, powered by SMG, to launch a programmatic retail media platform across 350+ US airport stores. Using Mood Media’s hardware, the network activates 700 digital screens and audio channels, with brands like Frito-Lay and Bose among early advertisers.

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Papa Johns is modernizing its US restaurant technology by 2027 using PAR Technology’s PAR POS and PAR OPS platforms. The upgrade aims to simplify operations, improve efficiency, and enable intelligent automation, complementing the brand’s AI and analytics initiatives through its Google Cloud partnership.

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RaceTrac partnered with ONRAMP to enhance payment security and convenience for professional drivers at RaceTrac travel centers and RaceWay high-flow diesel stores. Using ONRAMP’s cardless digital payment infrastructure, drivers gain seamless transactions plus access to loyalty rewards, account management, and support through RaceTrac’s nationwide network.

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Home Depot and Walmart announced new agentic AI deployments with Google Cloud at NRF 2026. Home Depot is using Google’s Gemini models and Gemini Enterprise to enhance Magic Apron, materials list generation, and delivery optimization. Walmart is integrating its shopping into Google’s Gemini app for conversational, personalized, and rapid consumer purchasing.

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Shopify and Google have co-developed the Universal Commerce Protocol, an open standard that lets AI agents plug directly into merchants’ checkout flows so shoppers can complete purchases inside conversational interfaces like Google Search AI Mode and Gemini. Shopify is also deepening embedded checkout integrations with Microsoft Copilot and managing these AI commerce channels, including ChatGPT, via its agentic storefronts in Shopify Admin.

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SAP unveiled a suite of AI-powered retail innovations at NRF 2026, including Retail Intelligence within SAP Business Data Cloud for unified demand and inventory planning, AI-assisted assortment management via Joule, and integrated omnichannel pricing in SAP S/4HANA Cloud. New tools in SAP Commerce Cloud and Order Management Services enable agent-driven, AI-powered retail experiences and fulfillment reliability.

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Google is expanding shopping features within its Gemini AI chatbot through partnerships with Walmart, Shopify, and Wayfair to enable instant checkout and personalized recommendations. Announced at the NRF convention, the integration links Walmart and Google accounts, while Walmart also plans to expand drone deliveries with Alphabet’s Wing.

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Google CEO Sundar Pichai announced new retail-focused AI tools at NRF 2026, including the Universal Commerce Protocol (UCP) built with partners like Spotify, Etsy, Target, Walmart, and Mastercard. Google also launched Gemini Enterprise for Customer Experience and expanded Wing’s drone delivery service with Walmart to more U.S. cities.

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Woolworths is piloting Google’s Gemini Enterprise for Customer Experience to upgrade its Olive chatbot from simple Q&A to an agentic digital concierge that can plan meals, surface budget-relevant specials, and, with shopper consent, automatically add items into their online baskets for checkout.

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Generative AI is redefining chatbots into intelligent assistants that drive business growth. Zendesk’s CX Trends report highlights this shift, while Google integrates its Gemini LLM with Dialogflow CX for hybrid agents. Microsoft advances its Copilot platform, and OpenAI powers custom chatbot solutions via GPT-4 and the Assistants API.

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Microsoft has launched agentic AI tools to boost retail efficiency, including Copilot Checkout with PayPal, Shopify, and Stripe, allowing frictionless in-chat purchases. Retailers like Urban Outfitters, Etsy, and Kappahl Group use features such as Brand Agents and personalised shopping agents to enhance automation, customer experience, and conversion across operations.

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JD Sports Fashion has partnered globally with Commercetools to launch one-click AI shopping via its Agentic Commerce Suite, integrating with Microsoft Copilot, Google Gemini, and OpenAI’s ChatGPT. Supported by Stripe for payments, the U.S. rollout begins this year, enabling secure, direct purchases through AI-driven search platforms.

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Walmart’s integration of OpenAI’s ChatGPT into its shopping engine signals a shift toward “agentic commerce.” Rather than replacing retail media networks, this evolution challenges CPG brands to optimize product detail pages and structured data for AI-driven, intent-based shopping, aligning language, taxonomy, and strategy across key retail partners.

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Albertsons Cos. is scaling enterprise-wide AI to boost efficiency, personalization, and profitability across operations. Using OpenAI for its “Ask AI” shopping tools and partnering with Microsoft for workforce training, the grocer is transforming customer experience, merchandising, labor management, supply chain, and retail media through advanced analytics and automation.

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7-Eleven, Ace Hardware, and Rainbow Shops are optimizing frontline operations with Workday technology. 7-Eleven and Ace use Workday Paradox Candidate Experience and Conversational ATS to automate up to 90% of hiring tasks, while Rainbow Shops improves shift management with Workday Frontline Agent, cutting staffing-change time by up to 90%.

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The RealReal Inc. is using Motorola Solutions’ AI-enabled video security suite to digitize and streamline its manual inventory intake process. With intelligent search and automated tracking across thousands of unique items, The RealReal has cut asset protection costs by about 60% and improved operational efficiency and merchandise security.

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Guess is piloting an AI-powered product catalog optimization platform using Microsoft’s Copilot Studio. The tool automates catalog tasks such as product onboarding, categorization, and error resolution, while enhancing product insights and personalization through image and social data analysis, supporting Guess’s omnichannel retail experiences.

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Walmart is expanding its partnership with Alphabet’s Wing to bring ultra-fast drone delivery to 150 more stores, creating a 270-location network by 2027. The expanded service, already successful in Dallas-Fort Worth and Atlanta, will reach major markets including Los Angeles, Cincinnati, St. Louis, and Miami.

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Walmart and Google are partnering to integrate Walmart and Sam’s Club shopping into Google’s Gemini AI through the Universal Commerce Protocol, developed with partners like Shopify, Etsy, Wayfair, and Target. The new experience enables AI-powered product discovery, personalized recommendations, and seamless in-app purchasing and delivery within Gemini.

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Crave Retail is showcasing its smart fitting room and engagement platform at Zebra Technologies’ NRF 2026 booth (#3303). Running on Zebra’s displays, mobile devices, and RFID tools, the solution—used by Victoria’s Secret, Under Armour, and Foot Locker—links fitting room data, AI insights, and associate response to boost conversions and sales visibility.

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Otto Group is partnering with NVIDIA and Reply to enhance supply chain operations using robotics. The companies are deploying a Robotic Coordination Layer powered by NVIDIA Omniverse, Isaac Sim, and RTX Pro 6000 across 120 logistics sites. Reply’s digital twin solution, using Boston Dynamics’ Spot robot, enables real-time warehouse visualization and process optimization.

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Papa Johns announced at NRF 2026 that it is the first partner for Google Cloud’s expanded AI Food Ordering agent, part of Gemini Enterprise for Customer Experience. The omnichannel platform powers unified voice and text ordering across apps, websites, phones, kiosks, and in-car systems to enhance digital interactions and efficiency.

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Kroger is expanding its partnership with Google Cloud to deploy Gemini Enterprise for Customer Experience nationwide, integrating AI-powered Meal and Shopping assistants to simplify grocery planning. The retailer will also use Google’s Customer Experience Agent Studio to analyze customer interactions, enhance service resolution, and personalize shopping experiences.

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SAP, Microsoft, and Workday are embedding AI into retail operations, moving from pilots to full-scale, agent-driven infrastructures. SAP’s Joule and Retail Intelligence enhance planning and omnichannel execution; Microsoft’s Dynamics 365 MCP/ACP enable seamless agentic commerce; and Workday’s AI tools, used by 7‑Eleven and Ace Hardware, optimize scheduling, hiring, and frontline operations.

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Walmart launched Better Care Services, a digital platform connecting customers to third-party healthcare providers with same-day consultations and integrated prescription pickup or delivery. Starting Jan. 15, Walmart offers a $15 telehealth discount and price rollbacks on 1,000+ wellness items. Its annual Wellness Event runs Jan. 24 at 4,600 pharmacies.

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Retailers including Kroger, Target, Lowe’s, Every Man Jack, Joe & Bella, Magic Science, and Little Spoon are expanding AI across operations for 2026. Tools like ChatGPT, Google Studio, Gemini, and Shopify APIs are powering personalization, inventory planning, creative optimization, and predictive modeling to enhance customer experiences and drive smarter, data-informed growth.

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The Tennessee Titans will implement Amazon’s Just Walk Out frictionless shopping technology at all 40-plus concession stands in the new Nissan Stadium, opening in 2027. Powered by generative AI, computer vision, and sensor fusion, the solution enables seamless, checkout-free purchases—making it the first fully frictionless NFL venue.

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Nvidia’s 2025 “State of AI in Retail and CPG” study found 91% of retailers and CPG companies use or assess AI, reporting cost reductions and revenue gains. Many leverage generative and agentic AI to boost efficiency, customer engagement, and supply chain performance, with most planning to increase AI budgets in 2026.

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Walmart Connect Mexico is deploying thousands of Advertima AI sensors across its hypermarkets in what it calls the world’s largest in-store audience intelligence rollout. The system enables real-time audience measurement and activation across digital and physical media touchpoints, enhancing performance-driven, privacy-first in-store retail media.

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AF Blakemore & Son, operator of over 240 SPAR stores, has selected Logile’s AI-driven Labour Planning suite to unify workforce management and standardize labour practices across its UK retail operations. The tool replaces manual Excel models, enabling data-driven labour alignment, forecasting accuracy, and improved productivity.

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Perfect Corp. has partnered with PHOENIX Pharma Italia to launch an AI-powered skin analysis and product recommendation experience at BENU parapharmacy in Milan’s Citylife. Using Inovshop smart mirrors and Perfect Corp.’s Skincare Pro, customers receive skin diagnostics and personalized suggestions from over 200 skincare products, with expansion planned across Italy.

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Quorso is expanding its partnership with Circle K to over 7,800 stores in the U.S. and Canada following a successful European rollout. Circle K uses Quorso’s Intelligent Management platform to simplify data, streamline store operations, enhance customer experience, and drive growth through data-driven insights and dynamic task management.

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NVIDIA’s third annual State of AI in Retail and Consumer Packaged Goods survey shows AI maturity accelerating as retailers shift from pilots to full deployment. 91% are using or evaluating AI, 90% plan budget increases, and 47% are exploring agentic AI for efficiency, personalization, decision-making, and supply chain optimization.

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VST has partnered with Co-op to give branded suppliers direct access to Co-op’s planogram data via VST’s Planogram Publisher platform, initially in a four-week trial with five suppliers before a wider rollout. The Co-op Group Commercial and Logistics division aims to use this data-sharing to reduce friction, improve transparency, and support smarter, more agile category execution for CPG brands.

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Pricer completed its first pilot of Pricer Avenue with the UK’s East of England Co-op. The platform extends Pricer’s electronic shelf label system with larger digital displays for improved promotions, shopper engagement, and in-aisle communication. Pricer plans additional pilots across Europe and Asia.

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Rithum has partnered with Lane Bryant to power a new dropshipping program on LaneBryant.com, using Rithum’s full stack commerce infrastructure to onboard brands and automate workflows. The initiative lets US-based brand partners list, sell, and fulfill directly, helping Lane Bryant expand assortments without inventory risk while enhancing its e-commerce experience.

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Australian activewear brand Muscle Republic has selected Refundid to power a new returns portal, offering customers instant refunds, instant exchanges, standard refunds, standard exchanges and store credit. The partnership focuses on elevating the post‑purchase experience and deepening operational collaboration between the two companies.

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Microsoft has launched Copilot Checkout, enabling shoppers to complete purchases directly within Copilot using PayPal, Shopify, Stripe, and Etsy integrations. Brands like Urban Outfitters and Ashley Furniture are participating. Shopify powers the merchant checkout, while Microsoft’s new “catalog enrichment agent” helps retailers optimize listings for AI-driven discovery.

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Walgreens Advertising Group has partnered with e-commerce technology firm Rokt to expand its retail media ecosystem. Using Rokt’s AI and machine learning tools, non-endemic brands can now reach Walgreens shoppers through targeted ads on Walgreens.com’s order confirmation page, enhancing engagement and creating added value for advertisers.

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Jet’s Pizza surpassed 10 million AI orders, generating over $250 million in sales using HungerRush’s OrderAI SMS platform and phone bots from HungerRush and ConverseNow. The tools enable text reordering and automated phone orders, boosting efficiency across Jet’s 460 U.S. stores while improving customer convenience and employee focus.

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Associated Food Stores has added GoSpotCheck by FORM to its technology portfolio, deploying the mobile task management platform to enhance shelf intelligence and merchandising insights. The tool enables real-time store visit tracking, improving visibility and execution across marketing, private brands, and fresh teams for the 450-store cooperative.

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GoodRx has launched its RxSmartSaver program at more than 200 Giant Eagle pharmacies across five states. The tool integrates savings directly at the pharmacy counter, offering patients lower prices on high-cost brand drugs like Ozempic and Wegovy while streamlining staff workflows and reducing prescription abandonment.

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Walmart and Google announced a partnership to integrate Walmart and Sam’s Club shopping within Google’s AI assistant, Gemini. Using the Universal Commerce Protocol, customers will access personalized recommendations, quick delivery, and seamless account integration. The tool debuts in the U.S. before expanding globally, enabling intuitive AI-driven shopping experiences.

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Pacsun launched its new digital platform, PS Community Hub, ahead of a major store expansion. The app integrates AI, social shopping, and creator monetization tools to foster user collaboration and content co-creation. CEO Brieane Olson says the platform reinforces Pacsun’s youth-focused, innovation-driven retail strategy.

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