AI-Powered Grocery Retail: The Key to Larger Baskets and Loyal Customers

Grocery retail is often criticized for being slow to react to new trends. And while there’s some truth to that, not everyone needs to be a “disruptor.” Sometimes it’s smart to watch how technology evolves and learn from what works before jumping in.


However, we’ve reached a point where grocery retailers are confidently implementing AI-driven solutions because the results speak for themselves: AI boosts both operational efficiency and customer engagement in ways that drive profitability.


On the operational side, AI helps grocers increase profitability through more efficient inventory management and streamlined eCommerce fulfillment. By using AI specifically to optimize the picking process, our customers can fulfill orders faster without labor cost overruns through better in-store routing and matching order value to staffing needs.


From a customer engagement perspective, AI is boosting the revenue of our retail partners by increasing basket sizes and improving customer lifetime value. Our AI-driven contextualized commerce solutions create personalized shopping experiences, offering targeted product recommendations and promotions that align perfectly with each shopper’s habits and purchase cycle. This level of personalization strengthens loyalty, turning one-time buyers into repeat customers.


The real power of AI comes when these two areas—operations and engagement—are combined through AI-driven eMarketing capabilities. Instead of marketing teams getting bogged down with repetitive tasks, AI automates personalized campaigns, ensuring that the right offers are sent to the right customers at exactly the right time—automatically. This automation frees up time for more strategic planning while delivering more effective, data-driven marketing that drives both revenue and operational success.

Gage Grewal

Director of Data Science & Personalization
Mercatus

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