Dive Brief:

• SpartanNash is expanding its use of AI technology company Upshop’s tool Magic to improve its localized inventory, bolster merchandising strategies and better its sustainability efforts, according to a Tuesday press release. 
• The tool also provides employees with an overview of the store’s stock to maximize assortment for customers and reduce waste. 
• "We're proud to continue to demonstrate how AI technology can improve operational excellence in our stores and across our business network," SpartanNash Executive Vice President and Chief Strategy and Information Officer Masiar Tayebi said in the announcement. 

Dive Insight:

SpartanNash’s expanded use of Upshop's Magic tool for inventory and replenishment optimization will allow the company to consolidate its ordering systems as well as assist with merchandising reset planning for center store and the produce department, according to the announcement. 

“By leveraging advanced analytics to predict product demand, our Associates can spend less time checking inventory and more time face-to-face helping serve our shoppers,” Tom Swanson, SpartanNash’s executive vice president of corporate retail, said in a statement. 

The Magic AI technology is specifically designed for the grocery industry, the announcement noted. The tool reviews seasonal trends, promotional activity and display allocations to give real-time sales data to associates.

Tayebi said that improving the company’s inventory control and accuracy accelerates the financial benefits as it undergoes merchandising and supply chain updates. 

This latest expansion between SpartanNash and Upshop builds on the partnership between the two companies that began in 2014. 

Earlier this year, SpartanNash launched another initiative aimed at improving center store inventory. In May, the company ramped up its use of Tally, an aisle-scanning robot from Simbe that gathers shelf-level data.

The Upshop expansion is the latest endeavor by SpartanNash to use technologies to curb food waste. In July, SpartanNash announced it has diverted 1 million pounds of food waste since partnering with Flashfood a little over three years ago, building on SpartanNash’s initiative to minimize waste. At the end of December, the company announced a pilot of Afresh Technologies’ predictive ordering and inventory management system at 10 Family Fare stores.