Retail Reality Check

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Amazon signed a $38 billion multi-year partnership with OpenAI to power its AI workloads on Amazon Web Services (AWS) infrastructure, deploying Nvidia GPUs via EC2 UltraServers. OpenAI joins other AWS AI partners like Anthropic and Nvidia as Amazon accelerates its investments in generative and agentic AI technologies.

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Amazon’s AI shopping assistant, Rufus, is projected to generate $10 billion in annual sales, with shoppers using it 60% more likely to purchase. CEO Andy Jassy cited strong adoption and AWS’s 20% growth. Amazon also expanded tools like “Help Me Decide” and Amazon Lens, underscoring its AI retail strategy.

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McDonald’s Chief Data & Analytics Officer Michelle Gansle urged companies to prioritize AI upskilling, emphasizing personalized learning, leadership involvement, and human-centered strategies. At McDonald’s, corporate staff use Microsoft Copilot after required AI training, achieving 94% weekly usage and zero safety issues within three months.

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67% of major U.S. retailers face frequent inventory accuracy issues that harm brand relationships and cause lost sales. Only 25% meet basic shelf accuracy standards. Robotics is the top solution, with 72% ready to deploy in-store robots, favoring managed automation services like Brain Corp’s ShelfOptix™ to restore trust and accuracy in retail.

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IHL Group and Brain Corp research found retailers lose $1.73 trillion yearly from inventory distortions, with robotics ranked as the top solution for improving shelf accuracy. Seventy-two percent of surveyed retailers plan robot deployment by 2027, citing improved visibility, trust, and brand relationships as key benefits.

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AWS and Verizon are collaborating to build high-capacity fiber routes connecting AWS data centers, enabling faster, more reliable AI workloads. This infrastructure supports the scaling of secure, high-performance cloud services for advanced AI applications across industries.

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Digital Brands Group is partnering with Microsoft’s Azure Quantum to explore quantum computing for business optimization, including hyper-personalized shopping recommendations, customer segmentation, and advanced data protection. Unilever is also collaborating with Microsoft on quantum and generative AI research to speed consumer product innovation, particularly in haircare.

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Merco, a northern Mexico supermarket chain, is deploying Toshiba’s MxP Self-Checkout across stores after a successful pilot. They are also considering Toshiba’s ELERA Security Suite with AI-powered loss prevention and produce recognition. Installation was supported by partners Swedarey and Microsistemas Californianos.

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Topps Tiles has rolled out Cegid Retail Store Excellence across its 297 UK stores to digitize task management, photo validation, and promotional compliance. The platform replaced manual Excel reporting, improving real-time visibility, sales performance, and consistency, with plans to expand into advanced reporting and internal communications.

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Winter Park Cycles migrated from Lightspeed to Shopify’s unified commerce platform, integrating WorkMate from Teifi Digital to streamline in-store and online operations. The move improved work order management, automated inventory and accounting, and drove 2X projected sales growth and record revenue within 90 days of launch.

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Tokyo-based Telexistence uses robots powered by Nvidia and Microsoft to restock Japanese convenience stores remotely operated by Manila’s Astro Robotics workers. Filipino tele-operators earn about $250–$315 monthly, training data that fuels Telexistence’s partnership with Physical Intelligence to build fully autonomous “physical intelligence” robots.

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Shelf intelligence technologies are now a top priority for retailers to improve inventory accuracy, profitability, and customer satisfaction. The research by IHL Group and Scandit shows inventory visibility ranks second only to customer personalization. Retailers growing profits over 10% invest twice as much in these solutions. Hybrid data capture methods (robots, cameras, mobile devices) boost early adoption and profitability leadership. AI spending in retail is rising rapidly, underscoring shelf intelligence as a strategic imperative.

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Amazon has opened its first automated micro-fulfillment center inside the Whole Foods Market in Plymouth Meeting, Pennsylvania. Using robotics from Fulfil, the 10,000-square-foot facility stocks over 12,000 items from both Whole Foods and Amazon, enabling shoppers to combine grocery and Amazon product orders with rapid in-store pickup or delivery.

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Venkatesan Santhirahasan, Senior VP at PepsiCo, transformed the company’s fragmented tech landscape into a unified, modular platform approach. Key tools include the Omni-Channel Commerce Hub, Digital Solution Accelerator, and supply chain hub apps like Manufacturing Control Tower and Transportation Control Tower. AI integration enhances operations, while partnerships with Fractal and Infosys accelerate platform innovation across global markets. This strategy boosts agility, efficiency, and personalized consumer engagement through scalable digital solutions.

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SumUp has partnered exclusively with Gong cha to streamline POS, kiosks, mobile ordering, and loyalty programs across over 400 stores in the Americas. Their integrated platform connects Gong cha’s robotic beverage technology and enhances customer feedback, boosting survey participation and centralizing data for a seamless experience and rapid expansion.

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Liverpool, Mexico's largest department store chain, has selected commercetools' agentic commerce platform, including AI Hub and Agent Gateway, to enhance its AI-enabled shopping experiences across digital and physical channels. This integration will enable seamless, secure, and consistent shopping via AI assistants like ChatGPT, supporting Liverpool's 178-year legacy of innovation and customer focus. Liverpool aims to accelerate AI-driven commerce journeys, improve convenience, and maintain its leadership in unified commerce for Mexican customers.

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Palantir is partnering with NVIDIA to integrate NVIDIA’s accelerated computing, CUDA-X libraries, and Nemotron models into Palantir’s AI Platform Ontology. Lowe’s is a key early user, applying this tech stack to optimize AI-driven supply chain logistics. The collaboration aims to deliver operational AI for complex enterprise systems with advanced decision intelligence.

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Riesbeck’s Food Markets, an employee-owned grocer in Ohio and West Virginia, has launched a new online shopping and order fulfillment platform powered by eGrowcery. The white-label eCommerce solution enhances digital shopping, pickup, and delivery experiences, aiming to boost online sales and exceed industry growth rates.

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CW Strong, a franchisee of Dave’s Hot Chicken and Carl’s Jr., implemented Harri’s labor management platform to reduce labor violations and time theft. President Cody Wong said the tool’s biometric and compliance features cut overtime costs and meal premiums, saving thousands while ensuring compliance with California’s strict labor laws.

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Instacart has launched Instacart AI Solutions, an enterprise toolkit for grocers including Kroger, Sprouts Farmers Market, and Good Food Holdings. These tools—like Cart Assistant, Store View, and Catalog Engine—use generative AI, agentic analytics, and computer vision to personalize shopping, improve inventory, and deliver actionable insights.

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Tails.com, a UK pet food subscription service, has partnered with delivery platform Metapack to enhance shipping options and checkout transparency for customers. Leveraging Metapack’s real-time data and operational insights, Tails.com aims to streamline fulfilment, reduce failed deliveries, and improve purchase conversion rates, while strengthening customer loyalty through a more agile delivery experience.

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Simba is expanding its partnership with UK retailer Bensons for Beds from 20 to 50 stores nationwide. This expansion gives more customers access to Simba’s award-winning Hybrid mattress range and accessories, with expert sleep advice available in-store. The move reflects strong demand and customer enthusiasm for Simba’s sleep technology.

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Tata Consultancy Services expanded its decade-long partnership with UK grocer Morrisons to drive AI- and automation-led digital transformation across retail, e-commerce, and marketing. TCS will modernize legacy platforms, deliver end-to-end engineering services, and launch an automation factory and Business Intelligent Command Centre to enhance efficiency and customer experience.

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Clearwater Mall in South Africa, in partnership with CONVO South Africa, has launched a free, on-demand sign language interpreting service accessed via QR codes at customer service points. It connects shoppers instantly with qualified South African Sign Language interpreters. This initiative breaks communication barriers and benefits both shoppers and staff.

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EE is launching multilingual translation across all interactive in-store screens throughout November 2025, allowing customers to explore products and services in their preferred language. Luke Walmsley, Head of Experience Design, highlights this as part of EE's goal to be the UK's most personal, customer-focused high street brand by leveraging AI for more inclusive experiences.

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The Order Management Market-2025

The Order Management Market-2025

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The Quality Group deployed Fluent Commerce's order management solution on AWS to replace legacy systems that caused overselling and order cancellations. The new OMS connects all sales channels and warehouses, enabling fast, accurate order fulfillment during peak flash sales and supporting rapid growth into new markets and brands.

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The East of England Co-op has invested over GBP600,000 to replace all self-checkouts in its Food stores with Trust Retail units. Piloted in Ipswich, the new SCOs improve efficiency, reduce shrinkage, and enable community donations. The rollout, supported by QCom and MiTEQ, completes by end of 2025.

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Ben’s Soft Pretzels has partnered with Square to power its nationwide operations using Square’s restaurant platform. The chain employs Square for Franchises, Square Register, Square Loyalty, Square Marketing, and Square Dashboard to streamline operations, enhance customer engagement, and support franchisee management across its 185 U.S. locations.

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Coles is modernizing its financial operations by implementing a cloud ERP system to enhance efficiency and competitiveness in retail. This upgrade centralizes data, streamlines supply chains, and improves decision-making, positioning Coles ahead of rivals like Woolworths while boosting customer service and operational innovation.

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Footasylum has partnered with invent.ai to use AI-powered inventory planning and transfer optimization. This lets Footasylum forecast demand more accurately, reduce lost sales, and stock the right products in the right stores, boosting revenue and efficiency.

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Macy’s Inc. unveiled a $640 million, 2.5 million sq. ft. automated fulfillment center in China Grove, NC, designed to handle 30% of its digital supply chain. The center combines robotics, ASRS, goods-to-person picking, and an advanced warehouse management system to unify online and store replenishment, marking a key step in Macy’s omnichannel modernization and supply chain agility. This facility sets a new automation benchmark for legacy retailers competing with digital-first giants like Amazon and Walmart.

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Mera Tiernahrung GmbH (Mera Petfood), a German family-owned premium pet food maker, selected RELEX Solutions’ AI-powered platform to unify demand, master, and production planning. The implementation aims to improve forecast accuracy, boost efficiency, and strengthen cross-department collaboration across global operations.

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Lidl GB has launched Lidl Pay, a mobile payment feature integrated into the Lidl Plus app. It lets customers pay contactlessly via smartphone while automatically applying Lidl Plus coupons and offers. The feature works at staffed tills and self-checkouts, enhancing convenience and flexibility for shoppers nationwide. Lidl Plus user engagement has grown by over a third in the past year. This launch is part of Lidl's commitment to improving the digital shopping experience.

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Luxury Italian brand Golden Goose partnered with Centric Software to enhance global merchandise and assortment planning. Building on their existing Centric PLM system, Golden Goose uses Centric Planning's financial, assortment, and strategy modules to streamline workflows, reduce manual work, and improve global team visibility for smarter decision-making. This collaboration supports Golden Goose’s growth and operational efficiency goals through connected end-to-end planning and AI-enabled optimization tools.

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VenHub Global Inc. opened a fully autonomous Smart Store at Los Angeles Union Station, offering 400-plus everyday items and contactless shopping for 60,000 daily rail passengers. Using robotics, automation, and mobile technology, the store was rapidly deployed with support from Metro and Morlin Asset Management.

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Kroger is expanding its partnership with Instacart to launch the AI-powered Cart Assistant within the Kroger iOS app. Using agentic AI, the tool helps customers plan meals, receive recommendations, and build carts faster. The collaboration also enhances Express Delivery and integrates Instacart’s Caper Cart smart carts in stores.

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Rally House partnered with Phenom to use AI and automation for recruitment as it expanded from 140 to nearly 300 stores. Tools like mobile QR code applications, chatbot screening, predictive campaigns, and automated interview scheduling reduced costs, saved 10,000 hours, and enabled nearly 8,000 hires with 122% cost savings.

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New York & Company is using Metrical’s AI-driven conversion optimization technology to analyze shopper behavior, predict purchase intent, and prevent cart abandonment. The retailer can dynamically deploy personalized banners and messaging on its site without code changes, driving real-time, predictive engagement to increase online sales.

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Uber Technologies and Toast announced a multi-year global partnership combining Toast’s POS systems with Uber’s delivery and technology network. The collaboration expands integrations across the U.S., Canada, Ireland, and the U.K., and will include new promotional and advertising tools on the Toast platform starting in 2026.

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Haffner’s partnered with Liquid Barcodes to develop a new mobile app and loyalty program launching in early 2026. The unified platform will integrate Haffner’s fuel, convenience, car wash, and home heating services, streamlining operations with full data control while offering rewards, gamification, and membership management tools.

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Southern Glazer’s Wine & Spirits revamped its organization to connect suppliers, retailers, and customers via data-driven tools like its Proof B2B platform and AI-native sales companion. Supporting top sites including Walmart, it leverages generative AI and image recognition to power lifestyle-based campaigns and enhance business insights for the beverage alcohol sector.

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Wickes has partnered with last-mile delivery firm Gophr to launch the Wickes Rapid same-day delivery service across 150 UK stores. Powered by Metapack’s delivery management system, the service offers two-to-three-hour delivery slots with live tracking, handling everything from tools to large items like timber and flooring.

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Co-op Media Network (CMN) has installed 1,000 front-of-store digital screens across its 2,300 UK stores, totaling 15,871 screens with kiosks and self-service displays. The rollout, supported by Commercial IT Services and Grassfish, expands CMN’s digital advertising footprint, making it the largest in the UK convenience sector.

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Pinterest is beta testing Pinterest Assistant, a visual-first AI shopping and discovery tool for U.S. users. Powered by visual language models and multimodal embedding models, it lets users converse naturally to find personalized, shoppable product recommendations based on their saved pins, boards, and style preferences.

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Adobe unveiled new AI tools, Firefly Design Intelligence and Firefly Foundry, used by major brands including The Home Depot, Disney, Coca-Cola, and Mondelēz. Coca-Cola integrated Firefly to maintain global brand consistency via its Project Fizzion design hub, while Foundry helps brands train custom, secure image and video models using Adobe’s proprietary data.

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Home Depot has partnered with Kai, an AI-powered renovation tool, to help users turn photos of home projects into detailed shopping lists and cost estimates. Kai analyzes images to recommend materials and instantly links to Home Depot’s inventory, streamlining renovations for institutional investors and soon, individual homeowners.

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Pet Supplies Plus has partnered with Instacart for one-hour deliveries from over 700 stores, including its sister brand Wag N’ Wash locations. The move gives Instacart access to 11,000 products across 400 brands and follows Pet Supplies Plus' January 2025 Grubhub partnership, expanding the pet retailer’s multi-platform delivery options.

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Prinker launched the Prinker POP beauty kiosk for creating custom makeup palettes with AI color simulation and the Prinker Tattoo Kiosk for browsing and applying temporary tattoos independently. Both aim to enhance personalization in retail and entertainment spaces.

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Tesco is trialing in-store measurement tech to gauge engagement with digital screen ads and launching a new feature for its Scan as you Shop solution. The update lets customers build shopping lists in the Tesco app, check stock, and navigate aisles efficiently using Clubcard-linked scanners.

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Kroger is expanding its partnership with Uber Eats to over 2,600 stores across its banners like Ralphs and Fred Meyer. The collaboration offers extended free trials and perks for Kroger Boost and Uber One members, integrating Uber Eats’ restaurant selection into the Kroger app for seamless grocery and meal ordering. This move enhances customer choice and strengthens Kroger’s retail media business by combining fresh food and delivery technology.

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AI is revolutionizing retail by enabling hyper-personalized customer experiences and smarter operations across the value chain. Retailers like Lowe’s use AI-powered visual search, driving $15.8M in annual revenue boosts, while Gordon Food Services enhances employee efficiency with centralized AI tools. Generative AI adoption accelerates productivity and revenue growth, reshaping merchandising, supply chain, and customer engagement strategies.

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VusionGroup partnered with German drugstore giant DM to deploy its EdgeSense digital shelf platform across 70 stores. The IoT- and AI-powered solution enhances process efficiency, employee productivity, and customer service through digital labels, LED shelf indicators, and mobile integration, reinforcing DM’s retail digital transformation.

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Ebay and Conde Nast have formed a multi-year partnership to promote pre-loved and circular fashion across major Conde Nast titles like Vogue, GQ, and Vanity Fair in the US, UK, and Germany. Ebay will be the official Pre-Loved Partner, combining its trusted marketplace and consignment services with Conde Nast’s cultural influence to make sustainable fashion both aspirational and central to style conversations.

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Grubhub and Instacart have partnered to allow Grubhub’s 20 million customers to order groceries from over 1,000 retailers via the Grubhub app, with Instacart handling fulfillment. This nationwide rollout also includes future pharmacy orders and special discounts for Grubhub+ members, enhancing grocery delivery options.

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Church & Dwight partnered with Storesight to combat phantom inventory and improve merchandising through AI-enabled photo insights. The tool identifies out-of-stocks, pricing errors, and display issues across retailers like Walmart and Target, enabling data-driven replenishment and improved communication on factors such as anti-theft packaging that affect sales.

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The Estee Lauder Companies is partnering with Shopify to upgrade its digital infrastructure and deliver personalized omnichannel experiences using AI and real-time data. The collaboration launches in early 2026 and supports all of Estee Lauder’s luxury and prestige beauty brands.

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Ibotta's new tool, LiveLift, helps CPG brands maximize promotion profitability by enabling real-time campaign measurement and optimization. Pilot partners like Liquid Death, Kimberly-Clark, and Hain Celestial experienced increased sales lift, faster repurchase cycles, and improved decision-making capabilities through ongoing campaign insights.

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Instacart is expanding its enterprise solutions among independent grocers nationwide. Big Bunny Market and Stewart’s Marketplace adopted AI-powered Caper Carts, while Luke’s Local Grocery uses FoodStorm and Storefront Pro. S&C Foods joined hundreds using Storefront Pro to connect online and in-store operations, streamline workflows, and enhance customer experiences.

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Heritage Grocers Group expanded its partnership with Ria Money Transfer to offer cross-border money transfers at Cardenas Markets, Los Altos Ranch Markets, and all El Rancho Supermercado locations. The collaboration provides customers affordable, reliable transfer options and promotional discounts to support families abroad.

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Scotts Miracle-Gro used machine learning, AI, and predictive modeling to improve demand forecasting and cut inventory from $1.3 billion to $627 million since 2023. Partnering with Kinaxis and Sierra.AI, the company is integrating new ERP and planning tools to drive cost savings and streamline its five-site distribution network.

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Walmart launched five new AI-powered digital tools in its app to enhance in-store shopping, including localized savings search, upgraded navigation, wish list integration, AI-generated audio summaries, and Sparky’s GenAI party planner. The retailer said app users spend 25% more in-store than those who don’t.

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Tecovas is deploying Invent.ai’s AI-powered allocation and replenishment platform across its stores after a successful pilot that boosted in-stock rates by 2%, increased new product sales by 20%, and cut allocator workload by 80%. This AI system optimizes inventory in real-time, enhancing product availability and efficiency.

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Walmart is launching new AI tools for Scintilla, its rebranded first-party data platform for suppliers and merchants, introduced at its Inspire conference. The AI features include a conversational tool to explain data metrics, AI-generated customer survey summaries, and enhanced marketing recommendations through Walmart Connect’s retail media. These tools aim to help suppliers better understand customer behaviors and improve targeting strategies with AI-driven insights. The conversational tool will be available early next year, while AI survey summaries will launch by year-end. Walmart is also working on collaboration tools for survey development and plans to refine targeting with AI in 2026.

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Walmart Data Ventures unveiled new Scintilla advancements at Inspire 2025, emphasizing AI-powered insights that accelerate suppliers’ decisions and customer-centric innovation. Scintilla users saw 15% higher omni sales. New tools like AI research summaries and an intelligence companion enhance actionable data and supplier engagement through the Walmart Customer Spark Community.

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REWE West has launched an AI-powered autonomous cooking robot at a Dusseldorf supermarket, enabling customers to enjoy fresh, restaurant-quality meals prepared live. The robot, part of the "Fresh & Smart" initiative, utilizes Circus’s CA-1 system and aims to expand across more stores, revolutionizing retail food service.

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