Innovation strategy in retail: The unstaffed digital supermarkets at LIFVS

Abstract

Digitalization captures most aspects of human life. New trends in digitalization have a great impact on the retail chain stores; hence, the implementation of artificial intelligence (AI) has somewhat become necessary to cope up with the changing trend in this sector. This case study analyses the use of artificial intelligence in an unstaffed supermarket called LIFVS located at the rural areas of Sweden. As the number of supermarkets was decreasing in the rural areas over the years due to high maintenance costs, many have opted out of business. In response to the situation, Co-founder Daniel Ludh (hereafter Daniel) implemented a sustainable business model using AI, which serves the purpose of supermarket chains meeting the demands of the consumers in the rural areas while keeping the costs truncated. The case also discusses the various challenges an unstaffed supermarket face and highlights the success of LIFVS, paving the path for the future retailers of the industry.