In this episode of Retail Reality Check, IHL Group examines how grocery retailers and suppliers are applying artificial intelligence to the operational systems that drive everyday performance. The discussion moves beyond customer-facing technology and focuses on the less visible work behind the scenes, including warehouse quality control, merchandising intelligence, replenishment, transportation, warehouse management, fresh-food production planning, and unified retail data. The episode highlights a widening adoption gap. Ninety-three percent of suppliers report using AI in their operations, compared with 47% of grocers. The examples show why clean, unified, accessible data is becoming the foundation for better pricing, promotions, inventory decisions, marketing measurement, shrink reduction, labor efficiency, and future agentic AI applications. AI creates the most immediate operational value when it addresses shrink, waste, labor costs, inventory accuracy, and supply chain visibility. Albertsons is applying internal AI to warehouse quality control and building a merchandising intelligence platform for natural-language data queries. Aldi USA completed a digital transformation across 2,600 stores and 26 distribution centers, with upgrades to replenishment, transportation, and warehouse management systems. Suppliers report much higher operational AI adoption than grocers, with a 93% versus 47% gap. Co-op, LiveRamp, and Google connected digital search activity to physical store visits, producing a 134% increase in in-store sales, a 77% increase in store visits, and a 39x return on investment for search. General Mills expects its global supply chain redesign to generate $750 million in savings by fiscal 2027. Organized, accessible, unified back-end data supports the next phase of retail automation and agentic AI. 00:02:16 - Introduction to Retail Reality Check and the upcoming webinar, “Beyond the Counter: How AI is Accelerating Self-Service.” 00:03:01 - AI as a capability, with the most transformative investments moving into back-end retail operations. 00:03:20 - Albertsons applies AI to digital shopping and warehouse quality control for fresh strawberries. 00:04:37 - Aldi USA completes a digital transformation across 2,600 stores and 26 distribution centers. 00:05:16 - The 93% versus 47% operational AI adoption gap between suppliers and grocers. 00:05:55 - Co-op, LiveRamp, and Google connect digital search ads to store visits and report major gains in sales, visits, and search ROI. 00:06:16 - Mizuno’s 544% increase in gross merchandise value. 00:06:35 - Pizza Ranch deploys NCR Voyix Aloha Next POS and moves toward a microservices architecture. 00:07:04 - Lidl & Go expands its smartphone self-scanning trial to 37 additional UK stores. 00:07:23 - Morrisons equips its 100th store with Vusion digital shelf-edge labels and pick-to-light technology. 00:07:43 - Pick n Pay introduces Penny, a Google Gemini-powered grocery shopping assistant. 00:07:43 - Taco Bell expands Omilia voice AI to more than 890 US locations. 00:08:12 - Walmart expands drone delivery capabilities across the greater Houston area. 00:08:12 - Lush joins BlueSky while prioritizing human-led social engagement. 00:08:36 - Marks & Spencer uses Lily AI to improve product data, organic search, and Google Shopping visibility. 00:08:56 - General Mills redesigns its global supply chain with a projected $750 million in savings by fiscal 2027. 00:08:56 - Kraft Heinz and Genpact deploy autonomous AI agents to resolve accounts receivable deductions. 00:09:18 - Hellmann’s pilots shoppable recipe videos on Instacart’s immersive feed. IHL Group: https://www.ihlservices.com EpisodeWebinar: “Beyond the Counter: How AI is Accelerating Self-Service,” Thursday, July 23 at 11:00 AM ET