The future of grocery stores

: Omnichannel and AI technologies and Next-Generation Brick-and-Mortar Grocery Stores

Abstract

In recent years the grocery retail industry has been experiencing tremendous change, drivenmainly by advances in technology. Traditional brick-and-mortar grocery stores are under threatfrom industry disruptors who incorporate new technologies into their business models and operate with online channels. Therefore, this paper introduces omnichannel and artificial intelligence (AI) use cases as factors influencing the future success of brick-and-mortar grocerystores. To identify critical drivers for success, semi-structured expert interviews were conducted to discover how grocers can implement an omnichannel strategy and combine variousAI technologies to remain competitive. Furthermore, a customer survey tested the acceptanceof specific use cases and scrutinized the resulting increase or decrease in shopping frequencydue to omnichannel in conjunction with AI. The analysis indicates an upcoming change in thegrocery industry. A move towards a combination of an online and offline world is rising. Moreover, use cases like online shopping, personalized prices and offers, and cashier-free checkoutshave the highest potential to increase the points-of-delight by consumers while grocery shopping. Therefore, grocers must adopt an omnichannel strategy and incorporate several AI-driventechnologies to increase profits and remain competitive.

Date of Award	7 Jul 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor)