5 things: Get ready to hear more from AI

AI automates the mundane and much more: Just about every booth at last week’s National Retail Federation Big Show in New York had some messaging on artificial intelligence, with many incorporating AI into their names or taglines. There were more than 35 educational sessions on the topic. And if you asked all of the 35,000+ attendees what exactly AI means for retailers, you’d get close to that many different responses. A few common themes, though, came through in much of the booth messaging, speaker presentations, and general discussions. First, AI is expected to help retailers with the whole labor issue by enabling workers to spend more time on activities that better engage customers and less on the humdrum. Next, AI for store analytics and insights, AI will help retailers optimize advertising, promotions, and pricing. There will also be business-use cases for inventory management and supply chain operations. Last, and perhaps most impactful long-term, AI will guide even more personalized customer recommendations that drive larger and more profitable market baskets. —Ronald Margulis

Spending less, weighing less: Jenny Craig? Seattle Sutton? How about Lingering Inflation? With grocery prices continuing to be higher than what they should be, they went up 0.3% in the month of December, a poster on Reddit decided to ask what are the food items that have created the most bug eyes in the grocery aisles. It led one responder to provide the following weight loss anecdote by pulling one item: “Potato chips. I’ve lost 10 pounds. My doctor says inflation is the best thing that could have happened to me. No joke.” Others said they were going to fewer concerts and other entertainment venues just so they could afford to fill their grocery bag. So what were the most shockingly priced foods? Instant ramen (what will the broke college kids do?), breath mints, fruit, peanut butter, soda, bleach, razor blades, and pet food. The good news is the Costco hot dog combo is still $1.50! Come on, you knew we were going to go there. —Bill Wilson

The future is bright … somewhat: The annual FMI Midwinter Executive Conference is upon us and one of its newest board members, Dave Peacock, CEO of Advantage Solutions, gives six trends to look out for in the year ahead. A strong labor market, low unemployment, and lowering inflation points to strong macroeconomic stability, Peacock said in a recent blog post. He also believes inflation trends will lead to pricing stabilization, and food-at-home will serve as a tailwind for growth in retail sales. Expect unit growth to continue from the holiday boost last year, and shrink/theft will continue to frustrate retailers and manufacturers this year. Continued pressures on consumers, such as the reduction of SNAP benefits and high interest rates, will prompt the need for manufacturers and retailers “to cater to two distinct sets of consumers at the same time,” he said. –Tim Inklebarger

It’s for the kids: Little Timmy. He’s grown up so fast. To think at the age of 7 years old he is now scanning food at the self-checkout. On Jan. 27, The Children’s Museum of the Upstate—Spartanburg in South Carolina will cut the ribbon on an exhibit that looks like a Publix grocery store. Kids can squeeze the fake produce, poke at the plastic meats, and handle the imitation dairy items. Shopping carts also can be pushed around, and children can pretend they are going through checkout and paying for groceries (they can even smack their forehead when they see the shocking receipt). It does not stop there, either. The Publix kid’s mart will have a cafe where children can enjoy their fake food and learn about various grocery and farm facts. As long as I can walk out of there with the same amount of money I had in my pocket when I walked in, I’m in. —BW

Dude, where’s my grocery store? Canadian grocery store chain Loblaws is looking to get into the cannabis game by lobbying the Ontario government to open a store within a store, according to business news platform The Dale Report. The story notes that the supermarket chain aims to relax regulations that would prevent it from entering the dispensary market, such as regs that prohibit the sale of cannabis at the same location where snacks and chocolate are sold. The report notes that Loblaws has experienced some success in its effort to become Canada’s pot dealer by opening dispensaries in two of its C-store locations. –TI