new framework for its AI tools consisting of four “super agents” that act as access points for customers, employees and external partners. “We want to reduce the cognitive burden for everyone, so we simplify things through these agents that help orchestrate and streamline the process,” said Desiree Gosby, senior vice president of enterprise tech strat - egy and emerging technology for Walmart Global Tech. Gosby spoke on a panel with O’Connor and Guy Peri, chief information and digital officer at McCormick & Company. Trust will also be critical. Consumers must trust the algorithm and their own agents to make purchases on their behalf. Peri said suppliers and retailers must pro - vide accurate, complete data to AI agents to build that trust. “In this agentic era, trust is elevated,” Peri said. “A lot is changing, but what’s not changing is the importance of brand trust and loyalty, retailer trust and loyalty and delivering quality every time.” O’Connor said retailers will need large language models, or LLMs, and knowledge graphs that LLMs can discover. Knowledge graphs function like databases, pulling together internal and external data. Retailers, he said, will need to learn how to promote and project those knowledge graphs so they connect effectively with LLMs. “You can’t control the LLM. You can con - trol the knowledge graph,” O’Connor said. “These two systems work together.” Retail foodservice is big, but grocers still have a lot to learn Foodservice is one area of grocery that has taken off over the past few years. Customers increasingly look to their local supermarkets for time-saving meals, with some choosing a grocery trip over a drive-through visit at a fast-food restaurant. Success in this sector is significant, but operating the right foodservice program requires a multistep approach. Michael Pursell, executive director of foodservice, deli and bakery at Associated Wholesale Grocers, has tracked the retail foodservice market for years. He offered an overview of where the industry is headed and what grocery retailers must focus on to succeed during a presentation at the FMI Midwinter Executive Conference.
Michael Pursell, right, executive director of foodservice, deli and bakery at Associated Wholesale Grocers, talked about retail foodservice at the FMI Midwinter Executive Conference.
One major issue, Pursell said, is that many retailers treat foodservice as a category instead of a business model that requires strategy, operations and consumer focus. “Foodservice operators are really good because of the complexity of the business,” Pursell said. “If you treat it as a category, it gets lost, and we expect labor and every - thing else to be absorbed.” Retailers also try to do too much in a single location, according to Pursell. They often implement too many formats or over - load operations by chasing and reacting to trends. The goal, he said, is to keep things simple and execute consistently. Labor is another critical factor. Food - service requires different skills related to timing, sequencing, food safety, equipment and production. Those demands differ from traditional grocery operations. Culinary talent is also difficult to find and retain, Pur - sell said. In ecommerce, retailers need websites that clearly support consumers who want hot food ready in 20 minutes. Pursell said few retailers currently follow that model. He added that grocers also miss opportu - nities to capitalize on specific events. The
NFL playoffs in late January was a major event for the NFL and watch parties. When Pursell reviewed 10 retailers’ websites, nine featured generic messaging. “It was about value, your New Year’s goals,” he said. Only one retailer took a targeted approach by offering $2 off pizzas and fully cooked enchiladas. “Being in tune with messaging by daypart and by menu is a big opportunity,” Pursell said. Social media is another necessity for a successful foodservice operation, yet many grocery retailers underuse it. Restaurants, by contrast, have leaned heavily into social media in recent years. So who does foodservice best? Pursell named three grocers, with Wegmans earn - ing top honors. “Wegmans takes the traditional grocery shopping experience and turns it into a very food-focused adventure,” Pursell said. He also cited a smaller Florida operator, Seat to Table, which shares similarities with Wegmans but has more of a restaurant-bar feel. Pursell additionally recognized Publix for its signature items, such as sandwiches.
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