Gelson's Looks to AI-Enabled Store Upgrades to Help Compete With Larger Chains
Gelson's Markets is investing in smarter store operations to enhance the shopping experience and improve sustainability — part of the grocer's ongoing effort to stay competitive in a landscape dominated by larger chains.
The Southern California-based grocer has partnered with Upshop, a provider of AI-enabled retail operations software, to implement a unified platform across its stores.
The move reflects a growing trend among regional retailers to adopt a connected store model, where data, automation and digital technologies are used as a strategic differentiator. Through the integration of Upshop's platform, Gelson's expects to improve forecasting, ordering, inventory management and fresh food production to help reduce waste, improve product availability and deliver a more seamless shopper experience.
"In a competitive grocery landscape, scale isn’t everything — intelligence is," Ryan Adams, president and CEO of Gelson's Markets, said in a media release, noting that the investment will enable stores to be hyper-responsive, efficient and focused on the guest experience.
"It’s how Gelson's can compete at the highest level," he added.
The rollout will begin with an emphasis on fresh food and foodservice optimization, as Gelson's looks to reduce food waste/shrink and streamline back-of-house operations. With consumers increasingly turning to grocery stores for fresh, ready-to-eat meals, enhancing quality and consistency in these departments is a strategic priority for the retailer, per the release.
[Also Read: Gelson's Among Wave of Grocers Adopting Instacart's In-Store Technologies]
In addition to driving operational efficiency, the platform supports Gelson's broader goal of building a digitally powered yet human-centered in-store experience. Associates are equipped with tools to simplify workflows and better serve shoppers, while intelligent inventory and production systems ensure product availability aligns with local demand.
Gelson's operates 26 full-size markets and one ReCharge convenience concept across Southern California. By leaning into connected store technology and AI-driven decision-making, the retailer is positioning itself for long-term growth by betting on operational intelligence as an equalizer in modern grocery.
