Carrefour Embraces AI and Digital Technology to Transform the Retail Experience

Table of Contents

1. Key Highlights
2. Introduction
3. The Omnichannel Approach
4. Implications for Employees and Suppliers
5. A Case Study: The Changing Landscape of Grocery Retail
6. Future Prospects
7. Conclusion
8. FAQ

Key Highlights

• Carrefour is implementing AI and digital shelf technology to enhance efficiency and personalize customer experiences in its stores.
• A partnership with VusionGroup will introduce smart shelves equipped with IoT devices and cameras for improved stock management and pricing.
• The initiative aims to boost employee productivity, deepen customer engagement, and create new revenue streams through in-store retail media.

Introduction

As consumers increasingly lean toward a hybrid shopping experience, the retail sector is undergoing a seismic shift. Carrefour, one of the world's leading supermarket chains, is at the forefront of this transformation, embracing artificial intelligence (AI) and digital technology to redefine how customers interact with their stores. A striking 90% of Carrefour's sales still occur in physical locations, underscoring the need for innovation in the brick-and-mortar shopping experience. At the recent Viva Tech 2025 conference in Paris, Emmanuel Grenier, Carrefour's Director of eCommerce, Data, and Digital Transformation, emphasized the critical role of technology in shaping the future of retail. This article delves into Carrefour's digital transformation strategy, exploring its implications for efficiency, customer engagement, and revenue generation in a changing retail landscape.

The Omnichannel Approach

Grenier's vision for the future of retail is clear: omnichannel shopping, where online and in-store experiences converge, is not just an option but a necessity. He articulated three core convictions during his presentation:

1. The Future of Retail is Omnichannel: Customers will increasingly shop across different platforms, necessitating a seamless integration of online and offline experiences.
2. eCommerce in Physical Stores: A significant portion of online orders—estimated at 70%—will be prepared in-store, highlighting the importance of physical locations in the eCommerce ecosystem.
3. Technology as a Differentiator: Retailers that leverage technology effectively will stand apart in an increasingly competitive market.

The Role of Digital Shelves

Central to Carrefour's digital transformation is the introduction of smart shelves in collaboration with VusionGroup. These shelves are equipped with cameras and sensors that monitor stock levels and customer behavior in real time. This technology allows for dynamic communication with shoppers, enabling personalized promotions based on observed buying patterns.

Grenier likens the function of these smart shelves to having a dedicated employee continuously monitoring inventory and customer interactions. “We’ll be more efficient, and there are a lot of new use cases coming,” he stated, suggesting that the implementation of this technology could yield a wealth of insights into consumer behavior.

Data as a Competitive Advantage

In a rapidly evolving retail environment, data is becoming the bedrock of strategic decision-making. According to a 2025 PYMNTS Intelligence report, grocery merchants that have embraced data-driven strategies reported significant revenue growth. Here are some pertinent statistics from the report:

• 70% of grocery merchants with data-ready businesses experienced revenue growth in the past year.
• More than 65% of grocery and retail merchants lack access to real-time supply chain data, even though 70% consider it vital for decision-making.
• Limited data sharing across departments can hinder revenue growth opportunities by as much as 5%.

Grenier and Thierry Gadou, CEO of VusionGroup, assert that digitizing stores will not only enhance operational efficiency but also significantly improve employee productivity. With the right data, employees will be empowered to quickly identify stock shortages, pricing discrepancies, and other operational issues, optimizing their workflow.

Transforming Retail Spaces into Media Assets

Beyond improving efficiency, Carrefour's digital strategy positions its physical stores as dynamic digital media assets. “The physical store is the next big digital media,” Gadou proclaimed. This perspective opens up new avenues for targeted marketing, allowing retailers to leverage foot traffic in-store for advertising revenue.

Grenier echoed this sentiment, emphasizing the potential for retail media to enhance communication with customers and measure the impact on sales. This dual approach—enhancing the customer experience while generating additional revenue through advertising—illustrates the evolving nature of retail spaces.

Implications for Employees and Suppliers

As Carrefour integrates AI and digital technologies into its operations, the implications for employees and suppliers are profound. Automation and improved data accessibility will fundamentally alter the day-to-day responsibilities of retail employees. For instance, a future employee equipped with a mobile app could quickly ascertain stock levels and pricing issues, streamlining operations and enhancing customer service.

Moreover, the digitization of stores has the potential to foster stronger partnerships with suppliers. By creating a more transparent and data-driven environment, Carrefour can improve collaboration and streamline supply chain management, ultimately benefiting both parties.

A Case Study: The Changing Landscape of Grocery Retail

Carrefour's digital transformation strategy aligns with broader trends observed across the grocery retail sector. Similar initiatives have been undertaken by competitors like Walmart and Costco. Walmart, for example, is investing in AI technologies to enhance operational efficiency and customer engagement. This competitive landscape underscores the necessity for retailers to innovate continuously.

As grocery stores evolve into data-driven hubs, the future will likely see more retailers adopting similar strategies. The implications for consumers, employees, and suppliers will be significant, ushering in an era of enhanced convenience and efficiency in the shopping experience.

Future Prospects

Looking ahead, Carrefour's ambitious digital transformation strategy sets a blueprint for what the future of retail could look like. The integration of AI and IoT technology is not just about staying competitive; it's about redefining the relationship between retailers and consumers. As the industry moves toward a more data-centric approach, the potential for enhanced personalization, efficiency, and revenue generation is vast.

The grocery retail sector, characterized by low margins, stands to benefit immensely from these innovations. Gadou noted that digitizing stores could add two to three percentage points to operating margins—an attractive proposition for any retailer.

Conclusion

Carrefour's commitment to digital transformation through AI and innovative technologies represents a pivotal moment in the retail industry. By enhancing efficiency, personalizing the shopping experience, and positioning stores as media assets, Carrefour is not only responding to the evolving consumer landscape but also paving the way for future innovations. As the lines between online and offline shopping blur, the success of this strategy will depend on how effectively Carrefour can leverage data and technology to meet the needs of modern consumers.

FAQ

What are the main goals of Carrefour's digital transformation?

Carrefour aims to improve the customer experience, enhance employee productivity, and unlock new revenue streams through in-store retail media by implementing AI and digital shelf technology.

How will smart shelves work in Carrefour stores?

Smart shelves will utilize cameras and IoT devices to monitor stock levels and customer behavior in real time, allowing for dynamic communication with shoppers and personalized promotions.

What impact will data-driven strategies have on grocery retailers?

Data-driven strategies can lead to significant revenue growth, improve operational efficiency, and enhance employee productivity by providing real-time insights and facilitating better decision-making.

How does Carrefour's strategy compare to competitors?

Similar to Carrefour, other grocery retailers like Walmart and Costco are investing in AI and digital technologies to enhance efficiency, customer engagement, and operational transparency in response to the evolving retail landscape.

What are the potential long-term implications of these advancements?

The integration of AI and digital technologies could redefine the retail experience, making stores more user-friendly and personalized while also transforming them into media assets for targeted advertising and marketing.