1. News
May 22, 2019

Albert Heijn trials AI aided dynamic discounting system

Dutch supermarket chain Albert Heijn has started testing an artificial intelligence (AI) aided system called 'dynamic discounting' on products at its Zandvoort store. 

Dutch supermarket chain Albert Heijn has started testing an artificial intelligence (AI) aided system called ‘dynamic discounting’ on products at its Zandvoort store.

The trial was advised by anti-waste company Wasteless as part of the retailer’s efforts to reduce food waste.

The company has developed an algorithm that determines price reduction on chicken and fish products based on their shelf lives and other factors such as location, bonus offers, weather conditions, historical sales performance and in-store stock.

Products that are approaching their expiry soon will be given a higher discount.

Electronic price tags on the products display the regular price and discount on a specific expiration date.

As part of its sustainability strategy, the supermarket chain aims to eliminate half of the waste across its operations by 2030.

In April last year, Ahold Delhaize partnered with the Innovation Center for Artificial Intelligence (ICAI) project to launch the joint ICAI-Ahold Delhaize industry lab, AIRlab, at Amsterdam Science Park.

Research into ‘socially responsible algorithms’ is being carried out at the lab for use in making recommendations to consumers and managing supply chain flows.

The Netherlands-based global food retailer’s Albert Heijn and bol.com brands are participating in the research.

“The supermarket chain aims to eliminate half of the waste across its operations by 2030.”

Furthermore, Ahold Delhaize teamed up with Delft University of Technology in November 2018 to expand its focus to robotics and explore the possibility of deployment in a retail setting.

Earlier this month, Albert Heijn partnered with Dutch discount retail chain Hema to open two joint pilot stores in Oudegracht, Utrecht; and Beursplein, Rotterdam, the Netherlands.

Last month, the supermarket chain signed an agreement to acquire local online start-up FoodFirst Network (FFN) as part of its plans to ‘put nutrition and health more at the centre of its offerings’.