Trendspotting: Grocers must learn from the dinosaurs — or risk the same fate
By
Craig Levitt
Trendspotting: Grocers must learn from the dinosaurs — or risk the same fate
"It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change." — Chares Darwin
I think it is safe to say that the grocery industry is coming to a crossroads. Artificial intelligence has infiltrated all walks of life, and the retailers that don’t embrace the technology do so at their own peril.
Food retail is an incredibly competitive business and food stores work on very small margins to begin with. According to Accenture, a leading global professional services company, at retail, AI is “reinventing how people shop, how businesses operate and how employees work.”
“Any delays could set companies back significantly against their competition,” said Laurent Thoumine, senior managing director – retail lead, EMEA at Accenture.
In the grand scheme of things AI is relatively new, and grocers are still figuring out how to best maximize the technology. Thoumine suggests five keys to do so:
1. Lead with value: Grocers should move beyond siloed AI use cases and instead focus on enhancing business capabilities across the entire value chain. Prioritizing AI investments based on business impact ensures that initiatives drive real value rather than becoming isolated experiments. A strategic, outcome-driven approach will maximize return on investment and create lasting competitive advantages.
2. Build a secure and adaptable digital core: For AI to be effective, it needs a strong digital foundation. This means investing in the right infrastructure, including scalable cloud solutions, integrated data platforms and secure, AI-ready ecosystems. Without this foundation, AI initiatives risk becoming fragmented, slow or even vulnerable to security threats. The retailers that thrive will be those who treat their digital backbone as a key strategic asset, ensuring AI can scale and evolve with the business.
3. Reinvent talent and ways of working: AI will not replace human expertise — it will change how we work. As AI takes over repetitive and transactional tasks, human roles will shift toward strategy, creativity and decision making. New skills will emerge, particularly the ability to navigate AI effectively. Grocers must proactively upskill their workforce, redesign workflows and create a culture where employees and AI collaborate seamlessly to drive better outcomes. Those who embrace this shift will unlock entirely new levels of efficiency and innovation.
4. Embed responsible AI: AI is only as effective as the trust it inspires. As AI systems take on greater decision-making responsibilities, retailers must ensure they are transparent, fair and accountable. This means addressing algorithmic bias, ensuring compliance with regulations and building AI solutions that are explainable and aligned with ethical standards. Responsible AI is not just about mitigating risks — it is about ensuring AI enhances customer trust, strengthens brand reputation and delivers sustainable business value.
5. Embrace continuous reinvention: The pace of change in retail has never been faster, and AI is set to accelerate it further. Instead of treating transformation as a one-time effort, retailers must embed reinvention into their culture — constantly refining processes, adapting to emerging technologies and staying ahead of shifting consumer expectations. Agility and innovation will define the next generation of market leaders.