Artificial Intelligence (AI) is no longer a futuristic concept—it’s here, and it’s already reshaping how global retail operates. For Australian convenience retailers, AI presents an unprecedented opportunity to transform the way we serve our customers, optimise operations, and future-proof our businesses.
In a landscape defined by rising costs, shrinking margins, and evolving consumer expectations, our industry must embrace new technologies that help us work smarter. AI isn’t about replacing people—it’s about empowering our teams, enhancing decision-making, and unlocking efficiencies we simply can’t achieve through manual processes alone.
One of the most immediate and impactful applications of AI lies in driving operational efficiency. From predictive inventory ordering to real-time analytics on sales performance, AI helps retailers automate repetitive tasks, reduce waste, and ensure the right products are on shelf at the right time. For stores operating with lean teams and tight margins, that’s a game-changer.
AI is also rapidly changing the way we understand and interact with our customers. By analysing transaction data, loyalty programs, and external behaviours, retailers can build a clear picture of what their customers value. This leads to smarter loyalty platforms—programs that feel truly personalised, offering targeted rewards that drive frequency, basket size, and long-term brand engagement.
When it comes to promotional programs, too many retailers still rely on static monthly plans and blanket discounts. AI enables us to create dynamic, data-driven promotions that respond to local demand, time of day, weather patterns, and even competitor pricing. This not only improves margin outcomes but ensures we’re offering true value to customers when and where it matters most.
AI’s role in product development should not be underestimated either. By identifying emerging trends and unmet needs within specific catchments or customer segments, retailers can develop new food, beverage, and service offers that are tailor-made for their communities. This level of precision can mean the difference between a product that fails and one that becomes a category driver.
Of course, investment in AI must be considered. Not every solution suits every operator, and technology for the sake of it won’t deliver returns. But what we can’t afford to do is stand still while others accelerate. Our global peers are racing ahead with AI-led strategies—and if we want to remain competitive, we must act now.
At AACS, we’re committed to supporting our members on this journey. Through strategic partnerships, education, and data insights, we’ll help operators of all sizes navigate the AI landscape and make informed, value-driving decisions.
The future of convenience retail will belong to those who harness technology to get closer to their customers, operate with efficiency, and respond faster to change. AI is not the enemy of traditional retail—it’s the enabler of what comes next.
It’s time we lean in.
This article was written by Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), for the August/September issue of Convenience and Impulse Retailing Magazine.
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