Ikea’s Cristina Rutgers-Astolfi: tech transforming traditional shopping into more personalised journeys

Using AI to nudge people towards better choices, like suggesting alternatives to high sodium products, could revolutionise how shoppers interact with retailers. So says Global Head of Analytics Ikea Customer Support, Cristina Rutgers-Astolfi.

In a LinkedIn post, she said: “By leveraging data from its Clubcard loyalty scheme, British retailer Tesco is aiming to create tailored recommendations that encourage healthier choices and reduce waste.”

“Their approach not only enhances customer loyalty but also aligns with growing consumer interest in sustainability and health. It’s exciting to see how technology can transform traditional shopping into a more personalised journey, making it easier for consumers to make informed decisions.”

Rutgers-Astolfi was responding to comments made by Tesco CEO, Ken Murphy, at FT Live: Future of Retail 2024, which took place in London last month.

“There have been waves of technology disruption historically. We are on the cusp of another one with AI,” said Murphy in conversation with moderator, Laura Onita, Retail Correspondent at the Financial Times, during the opening session of the conference. “AI will impact every facet of our business.”   

Murphy argued that we’re already on the fourth or fifth generation of AI, starting in the late 2000s and moving into machine learning applications last decade to improve supply chains, promotions in retail and so on.

“AI has already had a huge impact,” he commented. “But we’re now into the generative AI era with ChatGPT and the like, which is even more powerful.”

“You still need to be careful and have good oversight when introducing it. But it is developing so fast you do need to embrace it. Allow yourself to make mistakes in a controlled environment.”

AI end uses

In terms of the end uses to which AI can be put in the retail environment, Murphy discussed how it can improve efficiency but also how it can personalise Tesco’s Clubcard loyalty offer to customers down to a 1-2-1 level.

“For example, generative AI can deduct who you are buying for [by looking at the data -Ed.] and if it works out you’re buying for kids it could suggest you wait a week until that product is on offer,” explained Murphy.

“AI can cut waste by identifying if you’re buying two of something that will soon be out-of-date. Longer-term it can suggest healthier alternatives,” he added during a later Q&A session at the FT event.  

Tesco is a build house at present but moving to a hybrid model

As AI is advancing so quickly, Tesco is adapting its successful internal build out technology model, which it has favoured to date to help it integrate technology properly into its business.

“We need to recognise that pace of development,” said Murphy, while explaining that at the moment: “Tesco is a build house, not a buy house.”

“We’ve got 5,000 people in technology roles and add 300 per year. This works for us because it ensures seamless technology deployment but there are drawbacks in that it is slower to implement new innovations.

But it is more integrated. We have to find a hybrid model for the future.”    

In regard to the impact on jobs of AI, Murphy argued that it would be negligible because most of the economy has already moved from a production-based one towards a more customer facing services and retail focused economy.

“We’ve got over 300,000 people in our shops and they’re not going to be replaced,” he said. “AI will do the mundane tasks better and allow them to be redeployed.”

Additionally, AI will also, of course, help to make businesses’ data much more valuable and capable of being personalised in future, as in the example of Tesco’s Clubcard plans.

We truly are at an inflexion point for the retail industry and at the beginning of a revolution.

2024 RTIH INNOVATION AWARDS

AI is a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.

The awards, sponsored by CADS, 3D Cloud, Brightpearl by Sage’s Lightning 50, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.