Grocers are being squeezed from every direction right now: store operations,
security, technology decisions, and a supply chain that runs from distribution center
to shelf to customer. In a conversation with Beth Bergmann, Chief Strategy Officer at
Telaid, and Corrie Martin, Director of Enterprise Accounts at Telaid, breaks down what she is actually hearing from operators, IT leaders, and loss prevention teams, and where the smart money is going next.
The Legacy System Problem Nobody Wants to Rip Out
Martin's grocery career started on the retailer side with one of the largest national
grocers before moving to the vendor side, first in software and now in hardware
technology. That vantage point gives her a clear read on why so many grocers are
stuck: razor thin margins and complex supply chains, high store counts, and
perishable inventory all demand modernization, but most retailers are sitting on a
patchwork of legacy POS, ERP, and loyalty platforms that were never built to talk to
each other.
The result is manual workarounds and inconsistent data across the business.
Because margins are so tight, Martin says most grocers are choosing to integrate
new technology on top of what they already have rather than ripping everything out
and starting over. The winning approach, in her view, is a seamless platform that
brings inventory management and task management under one umbrella instead of
managing a dozen disconnected systems.
For a grocer trying to figure out where to start, Martin's advice is to go back to
basics: look at what the legacy systems deliver today, identify the gap against goals
like improving EBITDA and cash contribution, and weigh that against the customer
experience you are trying to protect.
Single Point AI Solutions Versus a Platform Approach
AI is the word of the moment, and Martin is quick to separate the hype from what
grocers are actually doing. Generative AI and agentic AI get most of the attention,
but Martin says most grocers she works with are not mentally or organizationally
ready for agentic AI yet. Where she sees real movement is vision AI: using existing
store cameras to solve inventory accuracy, queue management, labor efficiency,
and self-checkout challenges.
The bigger strategic question Martin raises is whether to solve one problem at a
time or invest in a platform that can grow into multiple use cases. A single point
vision AI solution, like catching missed scans or intentional theft at self-checkout,
solves a real problem quickly and proves ROI fast. Grocers tend to lean toward the
platform approach when they can, according to Martin, because it is the better long
term bet from both a capital and an operating expense perspective. The same
camera hardware once purposed only for catching theft can now measure dwell
time, customer direction, and movement patterns, so choosing a vendor with a
broader roadmap in mind pays off even when the first use case is narrow.
Sometimes speed wins anyway. If a grocer needs to solve one problem right now
and prove value immediately, the single point solution makes sense. If there is time
and flexibility to map out a longer term strategy, the platform approach tends to
compound in value, often starting in one department, such as automating manual
pick walks for operations, and then expanding into adjacent benefits like
merchandising once the underlying capability is in place.
Breaking Down the Silos Between IT, Ops, and Loss Prevention
Grocery organizations have historically split responsibility for technology across IT,
operations, loss prevention, marketing, and the distribution center, each with similar
needs but little coordination. Martin points to a strong, centralized program
management function as one of the clearest fixes she has seen work, drawing on
her own experience at a Fortune One grocer where a dedicated PMO kept every
team aligned around the same mission and metrics.
Where that centralized structure does not exist, Martin's advice to individual leaders
is simple: have the conversation with your peers. She has personally sat in client
meetings where operations and marketing were independently working on solutions
to the same problem, unaware that combining budgets and efforts would get both
teams what they needed faster. Being proactive about those conversations, rather
than waiting for a forcing function, tends to save both money and time.
Retail Media Networks and Electronic Shelf Labels
Digital signage and retail media networks have been building momentum in grocery
for roughly five years, according to Martin, as retailers look for ways to personalize
the shopping experience and monetize in-store advertising. Electronic shelf labels
are a good example of a technology that started as a labor solution, eliminating
manual price updates, and has since grown into a dual or even triple use case that
also supports advertising and personalization. Most major retailers now have profit
and loss lines tied directly to retail media, and several large chains have made
significant commitments in that space.
RFID Finally Reaches Its Moment in Grocery
RFID has been cyclical in retail for decades, with grocers repeatedly announcing
plans to adopt it and then pulling back due to cost and scalability concerns. Martin
sees that changing now, particularly in the meat and bakery departments, where
RFID labels support markdowns on goods nearing expiration and reduce shrink
from items that would otherwise be thrown away.
The technology itself is not new. What has shifted, in Martin's view, is the cost curve:
RFID hardware and labor costs have dropped dramatically compared to just a year
or two ago, which finally makes the return on investment model work for specific
departments. She does not expect grocers to ever roll out RFID storewide, but she
does expect continued expansion in targeted areas like meat and bakery, along with
adjacent benefits such as faster recalls and stronger food safety compliance.
Cold Chain Monitoring and the Rise of IoT Sensors
Behind the scenes, coolers, freezers, and HVAC systems represent one of the more
laborious and costly parts of running a grocery store. Martin points to a growing shift
toward IoT sensors that continuously collect temperature data and alert teams to
anomalies before they become spoilage events, reducing the need for manual
checks. Retailers are pairing that sensor data with predictive maintenance programs
to reduce long term maintenance and support costs, along with energy optimization
efforts to manage utility spend across large store fleets.
Like RFID, temperature sensing is not a new concept, but Martin notes that the
economics have caught up. The labor cost of manually monitoring equipment now
compares favorably to the cost of installing and managing sensors, which is what is
finally making the business case work at scale.
Managing Technology Across Hundreds of Locations
For an IT leader responsible for cameras, POS systems, access points, wireless
networks, and servers across an entire store fleet, Martin points to the value of a
centralized monitoring platform, such as Telaid's DeviceWatch, paired with a strong
PMO function. A centralized view lets a grocer see what has been upgraded, what
has not, what is working, and what is not, whether they are mid remodel or running
a refresh cycle across the fleet. That same visibility supports proactive maintenance,
warranty and RMA management, and a stronger break fix relationship with a chosen
technology deployment partner.
The Bottom Line for Grocers Ready to Modernize
Asked for a final thought, Martin comes back to the fundamentals: how does a given
technology investment move EBITDA and cash contribution, and how does it make
the customer's experience more convenient by ensuring the right product is in the
right place at the right time. Working through that question with a consultative
solutions partner, one that can speak to what has actually worked across other
grocery clients, is what separates a technology investment that pays off from one
that becomes another disconnected system to maintain.
Ready to take the next step? Contact Telaid to see how we can partner on your next project by integrating smart technology.