By Craig Rosenblum, Principal and Grocery Business Lead, Columbus Consulting
The new year opened with two massive events—CES in Las Vegas and NRF in New York—drawing nearly 200,000 attendees combined. And while the holiday season may be behind us, these shows made one thing obvious: the pace of change in retail isn’t slowing down. For grocery leaders, the message was unmistakable—AI, automation, and human‑centered retail are reshaping the industry faster than ever.
AI Is Becoming Grocery’s New Operating System
Across both shows, AI dominated every keynote and conversation. What used to be a set of isolated pilots is now becoming the core infrastructure of retail. AI is shifting from simple prediction to agentic systems that can reason, take multi‑step actions, and manage operations in real time.
For grocery, this means replenishment that orders itself, labor schedules that adjust automatically, and loyalty programs that adapt to each shopper’s behavior. Walmart and Google were blunt: AI is no longer experimental—it’s the new operating system for retail.
We’re also seeing stores become intelligent environments. Companies like Vusion are already deploying AI‑native stores where shelf‑edge sensors, Bluetooth, and real‑time data help the store “think” and act instantly. Walmart is using AI to guide associates, improve navigation, and build a more personalized, price‑right experience at scale. The next wave will extend these tools to suppliers and advertisers.
Technology Is Advancing Faster Than Most Grocers Can Keep Up
CES highlighted how quickly the underlying tech stack is evolving:
- Agentic AI (like NVIDIA’s Vera Rubin platform) will automate ordering, reduce waste, and optimize freshness without human intervention.
- Multimodal AI—voice, text, and vision working together—will power kiosks, drive‑ups, and checkout.
- Robotics is moving from prototypes to real deployment, supporting scanning, picking, and repetitive backroom tasks.
- Smart homes are becoming commerce surfaces, with fridges and appliances detecting inventory and triggering replenishment.
- Wearables are maturing into always‑on wellness tools that will influence nutrition, meal planning, and personalized promotions.
For grocery, this means the home will increasingly reorder itself—and retailers must be ready to accept and act on those signals.
Humanity Still Matters—More Than Ever
Despite the tech focus, NRF reinforced that the most successful retailers are the ones that feel human. Modern shoppers respond to authenticity, transparency, and storytelling—not corporate polish. Challenger brands are winning by being relatable and culturally aware.
Heritage brands like Ralph Lauren showed that innovation doesn’t mean abandoning identity. Instead, technology can amplify what makes a brand special. Their “Ask Ralph” AI experience is a great example—using conversational AI to enhance the shopper journey while preserving the brand’s voice and emotional connection.
Experience and Community Are Becoming Strategic Advantages
Physical retail is being reimagined as a destination. DICK’S House of Sport—with climbing walls, turf fields, and community events—demonstrates how stores can become places people want to visit. Community investment is no longer a nice‑to‑have; it’s a loyalty engine.
For grocery, this translates to seasonal “fields of play,” sampling events, local partnerships, and in‑store experiences that make the store feel alive.
The IT Gap Is Real—And Strategy Matters
Most grocers invest about 1% of sales in technology. Unfortunately, that same 1% is $10 million for a $1B retailer and $50 billion for Walmart or Amazon. The gap is enormous.
This makes a clear IT strategy essential. Grocers must prioritize:
- Data and inventory visibility
- Store operations and labor efficiency
- Customer engagement and personalization
- Omnichannel experiences
- Practical, high‑ROI AI applications
The focus should be on initiatives that reduce cost, improve efficiency, and enhance the shopper experience—not chasing every shiny object.
The New Rules of Grocery Retail
Across CES and NRF, a unified message emerged: the future belongs to grocers who blend high‑tech capability with high‑touch humanity. The winners will be those who move fast, stay true to their identity, and build platforms—not point solutions—that can evolve over time.
Grocery is entering a new era where stores think for themselves, homes reorder automatically, associates are supported by AI copilots, and shoppers expect both personalization and authenticity. The opportunity is enormous—but so is the urgency.
For more on this topic and to see how Columbus Consulting is helping grocers: https://www.columbusconsulting.com/grocery-convenience-store-retail-spotlight/ The Tech Scan is a new editorial feature from Columbus Consulting developed in partnership with NGA. The content features a series of short articles focusing on the Grocery/Convenience Store/CPG industries with topics dedicated to technology news and insights. https://www.columbusconsulting.com/the-tech-scan/