Aldi launches AI-based digital transformation initiative in U.S.
A fast-growing discount grocer is rolling out artificial intelligence-based enterprise solutions in the U.S. and Australia.
The Aldi Sud division of Aldi is launching a new multi-year effort to digitally transform its retail operations in the U.S. and Australia by implementing Genpact data, technology, and artificial intelligence solutions.
As a result, Aldi seeks to streamline operations and help achieve efficiency improvements. Specifically, the grocer will harness Genpact's AI and digital capabilities to help maximize the effectiveness and ROI from existing deployed technology platforms like S/4HANA, Ariba, Blackline, and ServiceNow.
In addition, Aldi plans to utilize Genpact technology to accelerate agility and cost leadership and aid in continued transformation in the U.S. and Australian markets. The company plans to more quickly respond to emerging trends, competitor actions, and customer feedback, helping ensure continued relevance and competitiveness in the market.
"By investing in digital technologies and exploring innovative business models, a retailer can differentiate itself from competitors and establish leadership in the industry," said Anil Nanduru, global business leader, high tech and manufacturing and consumer and healthcare, Genpact. "At Genpact, our AI-first approach for Aldi’s business services aims to achieve a front-to-middle-to-back transformation to create exceptional customer experiences and drive competitive growth."
[Related Content: Aldi eyes U.S. expansion, tech upgrade]
Aldi is pursuing digital transformation in the U.S. as it is also ramping up growth in the American market. The discount grocer plans to add 800 stores nationwide by the end of 2028 through a combination of new openings and store conversions.
In line with its plans, Aldi said its acquisition of Southeastern Grocers (SEG) and its Winn-Dixie and Harveys Supermarket banners will drive significant growth in the Southeast region, adding approximately 400 stores throughout Alabama, Florida, Georgia, Louisiana and Mississippi.
In addition, a “significant” number of Winn-Dixie and Harveys Supermarkets will convert to the Aldi format over the next several years. Aldi will invest more than $9 billion over the next five years on its expansion, adding new locations across the U.S.
As part of its growth trajectory, the grocer will strengthen its already strong presence in the Northeast and Midwest, adding nearly 330 stores across both regions by the end of 2028. The grocer will also grow its presence in the West by adding more stores in Southern California and Phoenix — and by entering new cities such as Las Vegas.
And in other efforts to advance its technological capabilities, in April 2024 the grocer retrofitted a suburban Chicago location with a cashier-free checkout experience it calls "ALDIgo." Aldi implemented a Grabango frictionless shopping solution in an existing store in Aurora, Ill..
The technology, which uses computer vision to identify and keep track of every item in the store, allows shoppers to exit without waiting in line or scanning items.
Aldi operates more than 7,200 store locations around the world, including more than 2,200 stores in 38 U.S. states with over 45,000 associates.