Exclusive interview: Rethinking the store in the age of agentic AI

IGD’s Stewart Samuel sat down with Patrick Rodmell, founder of Toronto-based Rodmell & Company, to explore how grocery retailers need to rethink the role of the store as agentic AI begins to reshape how customers plan, shop and make decisions.

To start, tell us about your role and what your business focuses on

Rodmell & Company works with retailers to develop compelling value propositions and translate strategy into customer experiences that influence brand love and purchase behaviour. Our work mainly involves new / refined store concepts, own brand programs, communications or loyalty program optimisation; it’s all about optimising the customer experience.

What does agentic AI change most for grocery retailers?

It moves more of the routine shopping process into automation, from building baskets to comparing products and optimising value, which reduces the influence of traditional levers like price and range alone. Early signals are already visible, with retailers like Loblaw experimenting with AI-led shopping journeys through PC Express, helping customers build baskets conversationally. As that model develops, more of the tasks associated with a weekly shop can be handled without entering a store, which puts pressure on the store to deliver something that sits beyond the efficiency of having everything available in one place.

If stores can’t win on efficiency alone, where should they focus first?

Fresh becomes the starting point, but with a higher standard than before, where the responsibility does not end at purchase. Customers judge fresh based on how it performs at home, when they’re consuming it, not how it looks in store, and that gap remains under-addressed. The opportunity is to build confidence through consistency, clearer cues and better guidance so that the retailer becomes trusted for how products last and are used, not just how they look in store. 

You also talk about owning more of the experience beyond the store

That becomes critical as more of the shopping process is handled elsewhere. A strong example is meal solutions, where retailers often focus on how products are presented rather than how they are actually consumed. When something fails at home due to unclear instructions, awkward preparation, or poor results, it erodes trust quickly. The retailers that stand out design products and packaging for real-world usage, making it easier for customers to succeed at home.

How does this play into private label strategy?

Private label becomes a more powerful lever because it is harder to directly compare than national brands, giving retailers the chance to build something more distinctive. Sobeys’ Farm Boy banner is a good example, where the strength of its private label range creates a clear reason to shop the store, not just substitute within it. That comes from consistent quality, strong identity and clear communication in-store, making own brand feel like a destination rather than a fallback.

If the weekly shop becomes easier to automate, how do stores stay relevant?

They need to create offers that give customers a reason to be there, not just a reason to buy. Fresh St. Market provides a clear example with its self-serve nut butter station, where customers actively participate in creating what they purchase. That shifts the experience from selection to involvement, giving the store a role that cannot be replicated through an automated shop and creating something more engaging and memorable.

What role does merchandising play in that shift?

Merchandising needs to move from passive display to active guidance, helping shoppers complete missions more easily and with greater confidence. Longo’s executes this well through strong cross-merchandising, building complete meal ideas that bring products together in a way that reduces effort for the shopper. It is less about placing items side by side and more about inspiring and simplifying decision-making, helping customers move through the store with clarity rather than hesitation.

You group together theatre, celebrations and newness. Why do these matter more now?

They all give customers a reason to engage with the store rather than bypass it. Seed to Table in Naples, Florida is a great example of a food theatre experience, often referred to as the “Disney of Grocery Retail”.  Celebrations create another layer, where services like custom cake design turn the store into a destination for important moments beyond the routine shop. Newness adds to this, and retailers like Sprouts Farmers Market stand out by clearly showcasing new and seasonal products, giving customers a reason to return and see what ‘s new and exciting in store.

How should retailers think about communication in this context?

Communication needs to be more orchestrated, deliberate and consistent across the entire journey, ensuring that what the brand stands for is clear in-store, and beyond. This means aligning messaging across signage, digital and loyalty touchpoints so customers experience something coherent rather than fragmented. Without that clarity, shopping risks becoming purely functional, driven by price and availability rather than any sense of differentiation.  I like to think of this as scripting the experience.

Finally, where do people fit in all of this?

People become more important as a point of difference as more of the functional shopping process is automated. Retailers like Trader Joe’s and Vallarta Supermarkets show how staff can shape the experience in a way that feels natural and engaging, whether through proactive sampling, product knowledge or simple interactions that make the store feel more human. These moments are difficult to replicate digitally and play a growing role in making stores memorable.

Bringing it together

The shift underway is not about technology replacing the store, but about changing what the store needs to be good at. As more of the functions of a weekly shop are handled elsewhere, the role of the store is shifting. It must deliver confidence in fresh, make decisions easier in the moment, and be a destination for what’s new and next.