Grocery shopping is one of many tasks that can now be done entirely online. Still, retailers continue to invest in brick-and-mortar experiences, and FairPrice Group is no exception. The company is focusing on making store visits more efficient and relevant via digital technologies and AI.
Dennis Seah, Chief Digital & Technology Officer at FairPrice Group, spoke to Frontier Enterprise about the company’s “Store of Tomorrow” program, and how generative AI is transforming the in-store experience, not just for shoppers, but also for employees.
Changing demands
According to Seah, the only constant in retail is that consumer needs, tastes, and preferences shift frequently. FairPrice Group is seeing more customers switch between online and offline shopping, with higher expectations for consistency, personalisation, and ease across touchpoints.
“Today, we have over 570 touchpoints across Singapore through which we have over one million customer interactions every day. Our FairPrice Group app has grown over the years in both capabilities and membership, and we now have over 1.6 million users,” he said.
With the launch of its “Store of Tomorrow” program, FairPrice Group is focusing on practical applications of generative AI and expanding its collaboration with Google Cloud to improve in-store experiences.
Since most grocery shopping is driven by necessity, FairPrice Group is prioritising solutions that address recurring customer pain points, particularly wasted time and mental effort.
“Instead of just chasing futuristic, perhaps niche experiences, our priority with generative AI and digital transformation as a whole is to make the experience easier,” Seah said.
Transformation areas
Seah said the company is using AI to address challenges in three key areas: customer experience, supply chain management, and operations.
On the customer experience front, Seah observed that shoppers are becoming increasingly tech-savvy, with growing expectations for seamless journeys across channels, personalisation, and gamified interactions.
In supply chain management, ongoing disruption and rising costs have made accurate forecasting and efficient inventory control essential to staying agile and mitigating risk.
Operationally, global economic uncertainty has led to rising costs — from talent acquisition and retention, to rent and utilities — which could become significant challenges if left unaddressed.
“Persistent global disruption and rising costs in the last few years underscored the need for more agile and future-proof solutions. This is what influenced our decision to shift towards an AI-driven approach: the need to enhance our agility to stay ahead in an increasingly competitive retail landscape,” Seah explained.
Recognising that successful implementation depends on widespread adoption, Seah acknowledged the importance of bringing both headquarters staff and frontline workers along in the company’s technology journey.
“Through our workforce transformation and multi-skilling programs for frontline staff, over 1,600 cashiers have been trained to take on more digital-centric roles in stores, such as digital ambassadors who can educate customers on how to use solutions like our self-checkout counters and smart carts,” he said.
One of the newer additions being piloted at FairPrice outlets is its smart cart, currently available at the Sengkang Grand Mall Finest store and slated for rollout at the upcoming Punggol Digital District outlet.
“By scanning the QR code on the FairPrice Group app using the smart cart’s built-in scanner, customers can search for specific products, receive promotions or recommendations as they walk the aisles, and add items directly to a digital checkout basket. They can then pay on the cart itself, streamlining the entire shopping process,” Seah said.
For employees, a digital platform called Grocer Genie serves as a one-stop portal for store operations. The AI-enabled tool supports task management, offers performance insights, and can be accessed via Android, iOS, or web browser.
“If a manager takes a photo of a spill and uploads it to Grocer Genie, the system can automatically assign the task to the nearest staff member. Likewise, if a shelf is running low, integrated video analytics can trigger an alert through Grocer Genie to notify someone to restock,” Seah shared.
Grocer Genie also provides access to store-level data such as sales and productivity, allowing frontline staff to play a more active role in managing in-store operations, he added.
In addition, AI-powered chatbots handle customer service queries round the clock, reducing the workload for human agents on routine questions.
Future of grocery shopping
As part of the Store of Tomorrow initiative, FairPrice Group plans to pilot around 20 new digital and AI-powered solutions annually over the next three years.
“With the pace we’ve set for ourselves, we fully understand that not all of these pilots are likely to succeed. This is why our approach will be centred on a prototype-pilot-scale methodology with clear stage gates, so that we can rigorously evaluate the business case before fully committing to a solution,” Seah said.
He reiterated the company’s aim to simplify the shopping experience — an effort aligned with its broader philosophy of improving everyday life for people in Singapore.
“We aim to fail fast and learn fast to implement the digital solutions that work best for our customers,” Seah concluded.
