NRF SmartBrief: AI in Retail Edition
Cotswold updates strategy as AI reshapes furniture retail
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July 6, 2026
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NRF SmartBrief: AI IN RETAIL EDITION
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Costco's AI strategy helps to spotlight pricing, value
Costco has successfully implemented AI to enhance its ecommerce platform, resulting in significant growth in online traffic and conversion rates. The warehouse club uses AI to improve product visibility and communicate value, particularly highlighting its all-inclusive pricing on appliances, which includes delivery and installation. "We believe AI is changing how consumers research products, and has the potential to be a significant opportunity for Costco given our pricing authority, and our focus on quality," CEO Ron Vachris stated as he discussed Costco's AI playbook.
Full Story: TheStreet (7/5)
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Re-imagine what returns can be.
Purolator connects your operations with a national network designed for complex, high-volume returns. Speak with a returns expert »
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AI in Retail
 
AI-referred purchases double at Amazon
 
The Amazon.com logo is displayed on a mobile phone with artificial intelligence (AI) in the background, in this photo illustration in Brussels, Belgium, on October 28, 2025. (Photo Illustration by Jonathan Raa/NurPhoto via Getty Images)
(NurPhoto/Getty Images)
Amazon has seen a rise in AI-driven purchases, with transactions resulting from AI recommendations doubling from last year, Datos reports. More consumers are using tools such as Google Gemini and OpenAI's ChatGPT to find products, with AI traffic growing up to 60%, though it still accounts for only about 10% of traditional search volume.
Full Story: MediaPost Communications (free registration) (6/30)
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Kraft Heinz automates deductions management with AI
Kraft Heinz is using an agentic-enabled accounts receivable system on Microsoft Azure to automate deductions management as part of an expanded partnership with Genpact. The initiative recovers lost revenue by automating the identification and resolution of disputed deductions, with expected outcomes including faster cycle times, increased annual recoveries and reduced financial leakage.
Full Story: Consumer Goods Technology News (6/30)
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Pick n Pay targets rivals with new AI shopping assistant
Amidst fierce competition in South Africa's online grocery sector, retailers are shifting focus from rapid delivery to seamless shopping experiences due to the introduction of AI. Pick n Pay Stores has launched an AI assistant named Penny in its asap! delivery app, allowing customers to shop via voice, text or photos. While Pick n Pay is trying to gain ground on Africa's largest supermarket chain, Shoprite Holdings, and overcome challenges due to recent financial setbacks, it aims to enhance customer interaction and boost its digital presence.
Full Story: Bloomberg (7/2)
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Cotswold updates strategy as AI reshapes furniture retail
The Cotswold Company, known for its upscale furniture, is adapting to the AI era by enhancing its online presence and integrating AI tools like ChatGPT and Anthropic's Claude. CEO Ralph Tucker notes the importance of being at the forefront of AI adoption as the company sees a significant portion of its sales online. While AI offers opportunities for personalized shopping experiences, challenges such as competition with larger brands and the risk of cloned websites persist.
Full Story: Bloomberg (7/1)
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Is Your Product Data Ready for AI?
AI agents don't request permission; they analyze data and recommend solutions. On July 23, learn how leading brands leverage scalable data enrichment to optimize catalog health, secure AI surface visibility, and protect market share. Register for the webinar »
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Tech Watch
 
Amazon's emissions rise amid data center expansion
Amazon's carbon emissions rose by 16% in 2025, reaching approximately 81 million metric tons, fueled by data center construction and increased fuel consumption for deliveries. This marks a 58% increase since 2019, despite Amazon's pledge to eliminate emissions by 2040, but it says it remains committed to its sustainability vision amid rapid AI adoption and infrastructure growth. The expansion of data centers, which require significant energy and materials like concrete and steel, has contributed to this rise, alongside a 34% increase in emissions from electricity purchases.
Full Story: Bloomberg (7/1)
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Chinese cinemas to expand offerings with AI agents
New guidelines from China's National Film Administration and the State Administration for Market Regulation are encouraging cinemas to expand beyond traditional screenings. Theaters are being urged to integrate coffee shops, AI agents and karaoke, as well as to host cultural events and retail activities in unused spaces. The guidelines also promote virtual-reality screenings, LED cinema screens, and stronger connections with local shopping and cultural venues, aiming to transform cinemas into multi-functional entertainment hubs.
Full Story: Bloomberg (7/4)
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Retail's AI pivot: Is your data ready?
AI readiness is now a defining factor for retailers and CPG companies, but are you ready to scale AI initiatives, all while minimizing risk and ensuring reliable, defensible AI-driven insights? Tell us about the primary drivers and your plans for retail AI adoption in this short survey. Share your thoughts, and you'll be entered in a drawing to win a $50 Amazon gift card. Take the survey.
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ICYMI
 
 
Amazon's Alexa now offers year-long price history
Chain Store Age (6/29)
 
 
Report: AI-driven searches fueled Prime Day purchases
Forbes (tiered subscription model) (6/29)
 
 
 
 
AI and the Consumer
 
Consumer AI choices shaped by workplace usage
Enterprise AI deployments are significantly influencing consumer AI adoption as 78% of employees who use AI tools, web browsers and search engines at work continue to use the same platforms in their personal lives, according to PYMNTS Intelligence's 2026 Consumer AI Benchmark report. This trend underscores the importance of workplace exposure in building user familiarity and trust, offering AI vendors a new avenue for customer acquisition. However, the competitive landscape remains fluid, with ongoing AI innovations potentially altering consumer preferences.
Full Story: PYMNTS (7/3)
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Research
 
Gartner: AI, robotics, transparency among supply chain trends
 
Industrial container yard for logistics business, import-export management concept and AI system
(Tanit Boonruen/Getty Images)