California grocer Gelson’s optimizes price and promotions with AI
A specialty supermarket chain in Southern California is managing the challenges of inflation and an expanding inventory with artificial intelligence (AI).
Gelson’s has been adding new curated food options, such as take-home meals and wine bars, as well as developing its new ReCharge by Gelson’s convenience store format (see below). The retailer grew concerned that managing its retail pricing strategies as its own costs rise and its assortment becomes more complex would prove extremely difficult.
In response, Gelson’s is deploying AI solutions from Clear Demand in an effort to enable optimized price and promotions that build customer loyalty, gain market share, and improve competitiveness across its varied assortments and formats.
Gelson’s also seeks to leverage the Clear Demand AI platform will increase merchant and buyer productivity, accelerate strategy development, align prices with shopper demand, automate compliance, and reduce price management and staffing workload.
“There is no doubt that our customers’ food buying habits and sensitivity towards price have changed,” said Ronald Johnson, CISCO at Gelson’s. “Clear Demand was the unanimous choice to deliver the pricing and promotions necessary for our growth and transformation.”
“Manual tools and spreadsheets can’t keep up,” said James A. Sills, Ph.D., president and CEO of Clear Demand Inc. “Retailers need the deep analysis and automation found within AI and machine learning solutions to remain competitive and relevant. Gelson’s is an innovator, delivering an impeccable shopping experience with localized assortments for their neighborhoods. We’re thrilled to work with this leading retailer on its price and promotion goals and deliver increased value for its customers.”
Gelson’s to debut new store format — at EV charging stations
Gelson’s is partnering with electric vehicle-charging station developer Rove to provide food and beverage services at its new charging stations. Rove plans to build six locations in Southern California beginning this year, with 20 stations planned by 2026.
The new concept, called ReCharge by Gelson’s, will offer a curated selection of foods, beverages and convenience items for Rove customers as well as neighborhood locals. The offerings will include beverages, hot and cold snack and meal options such as poke bowls and sushi, sandwiches and wraps, salads, charcuterie and cheese plates. A selection of dairy and frozen items will also be featured, along with staples such as snack foods, bread and non-grocery items.
Founded in 1951, Gelson's is a collection of premium food and beverage markets with 28 locations throughout Southern California. Each store offers a range of selected produce, meat, seafood, bakery and floral items, as well as chef-crafted signature and seasonal recipes from Gelson's Kitchen, including deli to-go and catering.