Grocery Outlet rolls out AI-based store ordering solution
An extreme-value grocer is rolling out intelligent ordering across every store department.
Grocery Outlet is deploying the artificial intelligence-based Afresh for Store Ordering solution in the center store, general merchandising, meat and produce departments at its more than 500 independently operated stores. The retailer stocks a constantly changing assortment driven by opportunistic product sourcing and sought an ordering solution that would not rely on static assortments or rigid merchandising programs.
The Afresh platform features probabilistic decision-making that handles new and rotating items from Grocery Outlet's flexible assortment and an intelligent inventory approach that doesn't depend on perfect on-hand counts.
"We selected Afresh because it is uniquely suited to Grocery Outlet's operating model and our vision for the future,” said Frank Kerr, chief store operations officer at Grocery Outlet. “This investment is about simplifying and modernizing operations for our independent operators, and equipping stores with world-class solutions that help them make smarter decisions every day. By combining advanced technology with the flexibility and entrepreneurial spirit that define Grocery Outlet, we're making it easier for operators to focus on serving their communities, delivering exceptional value, and driving profitable growth."
Grocery Outlet is revamping store ordering as it is undergoing a plan to close 36 underperforming stores across California, Idaho, Pennsylvania, New Jersey, Maryland and Ohio as part of a plan to refine its store base to “align capital and resources with long-term market opportunities.” The grocer said it is also targeting 30 to 33 net new store openings in fiscal 2026.
[READ MORE: Grocery Outlet plans store closures as part of 'optimization' plan]
"Grocery Outlet has built one of the most differentiated operating models in grocery, and that requires technology that can adapt to the complexity of modern grocery retail,” said Matt Schwartz, CEO and co-founder of Afresh. “We built Afresh to help grocers make better inventory decisions at scale — improving in-stock performance, reducing waste, and driving stronger results across the business.”
Other grocers that have deployed AI-based Afresh ordering and forecasting solutions in their stores include Albertsons, Wakefern Food Corp. and Stater Bros. Markets.
Based in Emeryville, Calif., Grocery Outlet is a high-growth, extreme-value retailer of name-brand consumables and fresh products sold primarily through a network of independently operated stores. The company and its subsidiaries have more than 500 stores in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Georgia, Ohio, Alabama, Delaware, Kentucky and Virginia.
