Walmart and Target are leveraging AI to enhance supply chain operations, achieving measurable margin improvements and setting a competitive benchmark for the retail industry, according to a Jefferies report. Walmart's extensive use of AI in demand forecasting and route optimization has led to substantial operational efficiencies, and its AI initiatives have reduced delivery miles and emissions. Target's $2 billion 2026 commitment includes funds for an accelerated AI and technology strategy, including integrating AI into customer-facing applications like Gift Finder.

The "AI-Native Store" model by Vusion and Qualcomm Technologies integrates AI and Bluetooth Low Energy to revolutionize physical retail. Retailers like Walmart and Carrefour have adopted this technology, which transforms shelves into sensors that provide real-time data on stock-outs and misplacements, enhancing stock management and reducing expenses by up to 85%. The model, which promises improved operational efficiency and profitability, adapts product displays based on shopper proximity to enhance the shopping experience.

DoorDash is expanding its autonomous delivery capabilities with the introduction of its proprietary "Dot" robot in Fremont, Calif. Developed in partnership with Sonic Manufacturing Technologies, Dot is designed for local deliveries, operating on bike lanes, roads and sidewalks at speeds of up to 20 mph and leveraging AI to optimize its delivery route. This rollout is part of DoorDash's broader strategy to integrate various delivery modes, including human drivers, drones and robots, to enhance efficiency and reduce emissions.

Target is dedicating roughly $6 billion this year to revitalize its stores, workforce and technology infrastructure, under the leadership of Chief Information and Product Officer Prat Vemana. AI-powered tools are central to Target's efforts to respond quickly to fashion and retail trends, for example. The company's Target Trend Brain analyzes large datasets from social media, runway shows and written reports to help designers identify popular colors and styles. By allowing designers to prompt the AI for fabric suggestions or design variations, the tool drastically reduces design cycle times from weeks to hours.

Instacart and Nvidia are collaborating to upgrade Instacart's Caper Carts with Nvidia's AI technology, turning them into sophisticated edge AI devices. These smart carts, used by Kroger, will use AI to analyze customer behavior and improve store operations, capturing data on item movements and shopper interactions. The initiative is part of Instacart's broader strategy to develop a "grocery world" model, integrating AI across various retail functions to enhance the shopping experience and operational efficiency.

Jeanologia, a Spanish company known for its eco-efficient textile technologies, has introduced an AI tool named "Billy" to revolutionize denim design by allowing designers to convert garment images into precise laser designs in minutes, significantly speeding up the design process. Trained on over 9,000 designs, Billy captures vintage denim's natural wear patterns, eliminating manual retouching. CEO Enrique Silla emphasizes that Billy enhances rather than replaces designer creativity, allowing them to focus on innovation while the AI handles technical tasks.

Half of US consumers prefer brands that do not use generative AI in their consumer-facing content, highlighting a significant trust issue. Despite the widespread use of AI-generated information, many consumers remain skeptical about its reliability and authenticity. Brands should implement AI cautiously, ensure transparency by clearly disclosing its use and make it optional to avoid alienating customers who distrust it, experts suggest.

Search behavior is evolving beyond traditional engines like dominant search giant Google, with platforms such as TikTok, YouTube and Reddit becoming critical discovery channels, as they account for a significant share of searches, according to SparkToro and Datos research. Social content is increasingly appearing in Google results and influencing AI-generated answers, highlighting the need for a comprehensive approach to discoverability. Despite this shift, many brands remain focused on outdated search strategies, missing opportunities on these emerging social platforms.

REI Co-op President and CEO Mary Beth Laughton reflects on her career path and how REI leverages its cooperative structure, mission-driven culture and strong member base to stay grounded on the latest episode of the Retail Gets Real podcast. Listen to hear about leading an 87-year-old brand through innovation, the role of mentorship and leading retail in an era defined by AI and rapid change. Listen now.

Electronic shelf labels are becoming more common as retailers replace outdated paper tags that require many labor hours and often lead to pricing errors. ESLs ensure accurate, real-time price updates that match the checkout register and reduce waste. Despite misconceptions, ESLs do not enable surge pricing, track customers or collect personal data. They function only as a display tool, with human oversight for all updates. Learn more.