Grocers Boost Conversion, Loyalty, and Margin with Algolia
SAN FRANCISCO–(BUSINESS WIRE)–Today, Algolia announced the launch of its Intelligent Grocery Solution, a thoughtfully designed application of artificial intelligence (AI) that transforms the way people shop for everyday essentials. Built for the unique demands of grocery retail, where convenience, speed, and margin are everything, the solution combines real-time search, personalized recommendations, and inventory-aware discovery. These capabilities make digital grocery shopping astonishingly simple, deeply personal, and effortlessly efficient.
An Undeniable and Inevitable Shift
For decades, the grocery store has been a place of familiar and functional habits. Now, an undeniable shift is underway: grocery shopping is increasingly moving online. In 2025, there are an estimated 138 million online grocery users in the US (source: Statista), and this is expected to rise until at least 2030. Digital grocery sales are growing 5.2 times faster than in-store. Market leaders (Walmart, Kroger, Amazon in the US; Co-op, Tesco, Asda, and Sainsbury’s in the UK) are setting new standards of convenience and personalization that others must inevitably match.
Moreover, convenience itself is profoundly personal. For one shopper, it is the speed of a weekly reorder. For another, it is the delight of a seasonal recipe. For a third, it is the quiet reassurance that a dietary preference will always be remembered.
And yet, these new online experiences are plagued with friction. Shoppers endure substitutions, out-of-stock items, and the tedium of endless reordering. Grocers, in turn, face wafer-thin margins, rising costs, and the relentless pressure of ever-heightening expectations.
Algolia’s new Intelligent Grocery Solution is designed to remove these frictions. It embraces these unique definitions of convenience. It is deeply human technology; not AI as novelty, but AI as necessity. It makes the digital grocery journey exceptionally intuitive, from the first moment of intent, to the last item placed in the cart.
An Intelligent Foundation
At the heart of the Intelligent Grocery Solution is AI that feels invisible. Invisible because it simply works—understanding intent in real time, guiding choices, surfacing availability, and recommending products with almost uncanny relevance.
Bernadette Nixon, CEO of Algolia, said: “We’ve always believed that search and discovery should feel effortless, almost invisible. With our Intelligent Grocery Solution, we are bringing that philosophy to one of the most vital industries in the world. This is not about adding more AI for the sake of it—it’s about designing technology that helps grocers thrive, while making everyday shopping profoundly simpler, faster, and more personal for millions of people.”
The Intelligent Grocery Solution offers a frictionless, conversational experience:
- Interactive guidance for every shopper: Whether it’s turning a handwritten note into a shopping list for someone on-the-go, or helping a dinner host find lactose-free chicken recipes and build a full cart, shoppers are guided to the perfect solution every time
- Instant, real-time, intuitive search that interprets natural language; whether typed, spoken, or even handwritten.
- Predictive, personalized recommendations that transform routine reorders into thoughtful, curated baskets.
- Real-time stock visibility and inventory-aware discovery that ensures what’s promised is always what’s delivered.
- Retail media and own-brand promotion that allow grocers to generate new streams of margin without adding new complexity.
Co-op’s Quick Commerce Development Manager, Gareth Cottiss, said: “Co-op is focused on continually innovating to deliver ease, speed, and convenience for our shoppers. Our work with Algolia has supported the delivery of a seamless and positive customer experience, consistently.”
Designed for Leaders Under Pressure
Business leaders—chief digital officers, heads of e-commerce, and digital Innovators—are under immense pressure to protect margins, grow loyalty, reduce costs, and act faster than ever before. With Algolia, they gain:
- Higher conversion and basket sizes, as seen with Auto Mercado (50%+ conversion lift, double the industry’s online sales average).
- Reduced operational strain, thanks to automation that eliminates rule-writing, substitutions, and rework.
- Enhanced loyalty, driven by experiences that feel less transactional and more personal.
Felipe Alonso Valverde, Auto Mercado Head of Ecommerce, shared: “Not only does Algolia pay for itself… it makes it easier to promote our private label brands and personalized impulse products.”
Value and Features of the Intelligent Grocery Solution
At its heart, Algolia’s Intelligent Grocery Solution is designed to strengthen both customer experience and business outcomes. It delivers clarity and simplicity in a digital world that has long been constrained with friction.
- Higher basket sizes: Shoppers spend more when the essentials are seamlessly re-ordered, allowing them to explore and add high-value items such as pet food or seasonal favorites.
- Reduced churn: Customers remain loyal when their history, preferences, and dietary needs are remembered and respected.
- Better profitability, made possible through reduced waste: By predicting demand and surfacing the right items in real time, grocers can avoid spoilage while strengthening their brand’s commitment to sustainability.
- New revenue streams: From private label promotion to retail media strategies, grocers gain margin without adding operational burden.
- Seasonal and contextual discovery: Search that adapts to the rhythms of the year, from summer barbecues to holiday recipes, ensuring grocers move inventory when it matters most.
Nixon added: “This is not a generic framework—it is a pre-assembled, ready-to-implement solution, designed with the unique cadence of grocery shopping in mind. It understands that 80% of carts are reorders and that margins are fragile. But above all, it recognizes that convenience is the single greatest differentiator in online grocery shopping. When every second counts, our solution ensures that shopping feels effortless, personal, and precisely tuned to each shopper’s needs.”
From seamless reordering to generative recipes, from bilingual search to retail media monetization, Algolia’s solution was created not as a platform, but as a partner—helping grocers thrive today, and adapt endlessly tomorrow.
Venky Kumar, Chief Product and technology Officer, MILKRUN said: “Around 65% of our customers use search for their shopping. Because of this MILKRUN relies heavily on Algolia to deliver a seamless browsing experience. In our business, every millisecond matters, and Algolia’s average response time of ~20 milliseconds delivers a great customer experience.”
A New Standard Available Today
The Intelligent Grocery Solution, designed to make shopping easier, and make business stronger, is available today. By reducing friction, increasing margin, and strengthening loyalty, Algolia enables grocers to focus less on survival, and more on serving.
Nixon concluded: “It is technology at its most thoughtful—where complexity disappears, and what remains feels effortless, natural, inevitable.”
Algolia attends eCommerce Expo (London) and GroceryShop (Las Vegas)
Algolia will showcase its Intelligent Grocery Solution at eCommerce Expo in London (24-25 September) at booth L60 and at GroceryShop in Las Vegas (28 September-1 October) at booth 1649. Visitors can explore live demonstrations of Intelligent Grocery Solution, experience Algolia’s GenAI Shopping Guides, and discover a range of innovative products.
About Algolia
Algolia is the leading AI search and retrieval platform, powering 1.75 trillion searches a year for over 18,000 businesses and millions of developers worldwide. Renowned for its developer-first, API-first design and the fastest AI search technology (combining keyword, vector-based NeuralSearch, rules, and personalization). Algolia is the largest hosted search engine available today. Backed by more than a decade of innovation, Algolia delivers end-to-end AI search capabilities, from powering Retrieval-Augmented Generation (RAG) to enabling LLM-powered applications through its MCP server and new products like AskAI and Agent Studio. With unmatched speed, scalability, and simplicity, Algolia continues to redefine how businesses and developers build intelligent, trustworthy experiences. Learn more at www.algolia.com.
Contacts
Audrey Surette
PAN for Algolia
[email protected]
