European grocery retail innovation in 2026: stores quietly become data engines

Physical stores will matter more than ever in 2026 for European grocery retailers, but much of the innovation will be almost invisible. So says Oliver Baggaley, who recently left Ahold Delhaize to join Trigo.

In a LinkedIn post, he said: "When we talk about technology in grocery retail, it’s easy to focus on what customers see: new checkout experiences, robots, e-commerce models. But looking across Europe, I think the biggest impact over the next few years will come from changes customers barely notice - simply a better functioning store."

Baggaley flagged up three trends that he is seeing:

1. Availability becomes the primary customer experience

Fewer out of stocks, better freshness, less waste - coming from AI driven forecasting and replenishment. Retailers like Tesco and Mercadona have been vocal about investing in data and automation to improve reliability, not for novelty, but because it directly drives sales and margin.

2. Stores quietly become data engines

Physical stores are turning into rich sources of operational and behavioural data.

Carrefour's Digital Retail 2026 strategy and Albert Heijn’s loyalty led model show how store data increasingly feeds pricing, promotions, and retail media, even when the shopper experience looks relatively unchanged.

3. Automation supports people, rather than replacing them

Some of the most effective automation isn’t visible at all. Discounters like Aldi Nord Group and Lidl in Germany use algorithmic ordering and simplified assortments to remove complexity from store teams, leading to fewer manual decisions, fewer errors, and more predictable days in-store.

Baggaley says: “Shoppers still say “wow” when new tech works - and it attracts the headlines - but for retailers that's not enough. In a post-Covid world, grocers are battling to protect margin against a range of cost pressures: labour, energy, COGS, shrink, and even the cost of technology itself. This has forced retailers to prioritise the technology that enables operational efficiencies, delivered reliably in the messy reality of grocery operations.”

RTIH AI in Retail Awards

RTIH proudly presents the first edition of its AI in Retail Awards, sponsored by VenHub Global, 3D Cloud and EdTech Innovation Hub.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.