Ahold Delhaize is ramping up its investment in AI and generative AI solutions, the retailer's chief executive, Frans Muller, has told the Groceryshop conference in Las Vegas.
In an opening keynote interview with CNBC New York's Melissa Repko, Muller outlined how Ahold Delhaize was utilising AI to introduce dynamic markdowns in the Netherlands, with products nearing expiration being marked down in price every 15 minutes.
As well as offering attractive prices to customers, this measure has reduced food waste by 250 tonnes in its first year, Muller noted.
Generative AI Tools
Elsewhere, in the US, Ahold Delhaize is utilising generative AI-based semantic search tools to enable consumers to search for products by intent, rather than keyword search.
As he explained, entering the term 'birthday ideas for 8 year-olds' would, in the past, have displayed limited results, whereas now, it displays a range of items such as birthday cakes, decorations and more, enchaining the customer experience.
Private-Label Sales
Elsewhere during the conversation, Muller addressed the company’s goal of reaching 45% private-label sales by 2028, while stressing the importance of maintaining a balance between private and national brands based on local market preferences.
For example, in the Benelux, private brand sales make up 50% of the market, while in the US, they account for 30%.
Retail media, an area of growth for Ahold Delhaize, was also addressed at Groceryshop, with Muller explaining how personalised promotions based on customer data, backed by data management and privacy practices, can improve the shopping experience.
Muller concluded with three key takeaways: the future is omnichannel, with a seamless experience across all platforms; local brand strategies are essential, despite efficiency challenges; and the company's success is driven by the dedication of its employees.
Ahold Delhaize operates the Food Lion, Stop & Shop, The GIANT Company, Giant Food and Hannaford brands in the US.
