Latest / GrocerTalk / Albert Heijn’s Sjoerd Holleman on AI Shopping Assistants and the Future of Grocery CX | Groceryshop 2026
Transcript
- 0:00Hello, everyone.
- 0:00This is Omnitalk Retail.
- 0:02I am Ben Miller, host of grocertalk, and I'm coming to you live from Las Vegas from the Vuzion podcast studio.
- 0:08That's booth 913 at grocery shop.
- 0:12And joining me now is Sjoad Hollerman, Chief Product AI and specialty Brands Officer at Albert Hein.
- 0:19I'm sure most people listening today will know the Aholdales business, but they might not know the Dutch brand specifically.
- 0:26So just give us a quick introduction to the division for which you work.
- 0:29Yeah, yeah, I work for Albert Hein, which is one of the great local brands of auto Hess al clearly global retailer, being in Europe, in many countries and in the east coast of the US Actually work for Albert
- 0:41Hein, member of the board there, responsible for strategy and deployment of technology and AI and as such, visiting Grocery Shop and having a keynote.
- 0:51Perfect, perfect.
- 0:52So, yeah, that's right.
- 0:53You were on stage yesterday for an interview.
- 0:55And your interview is all about how AI is increasingly helping you shape shopping experiences.
- 1:01So look incredibly relevant to the conversations we've been having.
- 1:05Break this down for me.
- 1:06What are the key things that you've done at Albert Hein over the last couple of years to use AI to help your shoppers?
- 1:12Yeah, I think what we pride ourselves in is that we see ourselves as a food tech company at Albert Hein.
- 1:18So we're not just grocers, we're food tech.
- 1:21So we have over a thousand internal capability, people that work in software engineering, product management, data science, machine learning engineers.
- 1:31And so we doubled down on AI long time ago already to make sure that we are ahead of the curve, helping our customers.
- 1:39Not just putting technology for the sake of technology, but really making a difference in the lives of our customers.
- 1:44Okay, so let's unpick some of that because I really want to go into some examples.
- 1:50Let's know if you were one of the.
- 1:51You were one of the first global grocers to launch an AI shopping assistant called Stein.
- 1:57Yeah, that's right.
- 1:59So because you've had this for longer than other people, what have you learned?
- 2:03What functionality are people actually using on the assistant?
- 2:07I think it's a very good question.
- 2:08So when we launched Stein already 1 and a half years ago, so we were sort of ahead of the curve.
- 2:13Yeah, but we really started with that what's for dinner question that everybody, everybody know.
- 2:18Well, you know, I know what every is more of a puzzle every time.
- 2:22Yeah.
- 2:22So one of the things I said is when I was young, my parents just put the.
- 2:26The food on the table, you just eat whatever you served.
- 2:29Yeah.
- 2:29And nowadays it's more complex.
- 2:30Right.
- 2:31So, so people wanting more protein, Some people might be allergic to gluten, some people want to be only 20 minutes in the kitchen.
- 2:38So you just could ask Stein, give me, help me, help me out with this problem.
- 2:42And that's what for dinner.
- 2:44And Stein will give you all sorts of recipe alternatives, put you on your grocery list, and really help you through that difficult decision that everybody has every night.
- 2:53Okay, so I'm going to ask you the key question.
- 2:55Insho, you've had this functionality for a year and a half.
- 2:58Lots of people have got tech saying that this is what it can do.
- 3:02Are you seeing customers actually using that functionality?
- 3:06Yeah, I mean, what we see is that we have over 1.1 million active users, so really, really driving change in shopping behavior.
- 3:14What we also see is, I thought, okay, is it really going to make a difference for all our shopper types?
- 3:21And we actually see 41% of all users being families with children.
- 3:25So it's not a Gen Z only feature.
- 3:28And we actually see 13% of users being elderly over 65.
- 3:33So it's really mainstream usage, which is, I think is something to be very wary about, that it's not just a nice shiny toy, it's for everyone to use.
- 3:42Okay, and have you seen an impact on basket size?
- 3:46Do people who shop like this, Is it smaller baskets?
- 3:48Because it's very specific use cases, are they adding into the full meals?
- 3:52What sort of behavior are you seeing?
- 3:53Yeah, what we see is that Stein users actually spend 56% more than your average customer.
- 4:00Okay.
- 4:01In all fairness, our primary customers were early adopters.
- 4:04That's what I was going to ask.
- 4:05Let's gonna eliminate that.
- 4:06But at least we see that it's really, when they're early adopters, they're really buying into it.
- 4:12And we see changing in behavior.
- 4:14We also see questions being asked like, how do I prepare a pumpkin?
- 4:18What are the best recipes to use with eggplant or gourgettes or whatever the people using.
- 4:24So we could actually help them also with their cooking experience, not only with their shopping experience, which made it a richer environment.
- 4:31Okay.
- 4:32I'd like to understand how they fit into the broader ecosystem.
- 4:35So for listeners who aren't as familiar, you know, Albert Hein, market lead in the Netherlands, who are incredibly familiar, you know, loyalty card, high penetration.
- 4:44How does this AI assistant fit into all the other touchpoints that Albert Hein, has with his customers?
- 4:49Yeah, I think that's a good question.
- 4:51So, so many Years ago, we doubled down on our app first.
- 4:55So we have 5.5 million active app users in which the AI is embedded now.
- 5:00So bear in mind 5.5 million is one in three of the Dutch population entirely actively using our app and it really fits in there.
- 5:08So our app is used by not only e commerce customers, but also customers going into physical stores and being helped there with their company.
- 5:15So it's a true omnichannel experience.
- 5:17Okay, I'd love to know more about that.
- 5:19How is your app helping shoppers in store?
- 5:22It's really well, it starts at home, so also AI and agent E commerce really starts at home.
- 5:27Right.
- 5:28So it's preparing your list, preparing your what's for dinner, what am I going to focus on and your promotions and really helping you along that journey, providing more healthy alternatives.
- 5:39So it's the discovery phase that's same for every customer whether you go to physical stores or do your e commerce stores.
- 5:47Okay.
- 5:47And I think what we're seeing now is most importantly what we're building now, and it's going to go live this year, is that we're not using Stein anymore as a you ask Stein and Stein will help you.
- 5:59Stein will help you proactively.
- 6:01So we're moving beyond and I think people are talking about the future here.
- 6:05We're trying to build that right now is highly personalized meal planning for you, waiting for you in your app, ready on your basket.
- 6:14Only you have to check out.
- 6:16So that's one of the features that we're building right now.
- 6:18Secondly, what we're building is pre filled essential baskets.
- 6:21So all your essentials we all know every week, every other day you're buying similar stuff that you're just replenishing to say the word as a customer.
- 6:31Why don't we pre fill that basket and allow you also to speak to Stein by adding stuff, changing your preferences.
- 6:39I mean, we see examples of people saying, I used to have full fat Greek yogurt, I'm on a diet now.
- 6:45Changed my historic behavior and you can actually talk to Stein and make those changes on your essential list.
- 6:51And lastly, we're making it much more conversational on all elements of customer service.
- 6:58So Stein, can you change my E Commerce order moments to a different moment?
- 7:02Can you change the store, my favorite store, because I'm going to a different one.
- 7:05I need to make sure that you know that I'm going to that store and really make it interactive as a conversational agent rather than just only answering questions that you're asking your agent.
- 7:18So we're moving beyond that and I think one thing to emphasize is all about persistent memory.
- 7:24So we're building the persistent memory that's underlying all these use cases so that Stein knows what your preferences are.
- 7:31What have you done historically?
- 7:32What behavior have you seen?
- 7:34What have you bought with us so far?
- 7:36And all that information will be persistent memory underlying the app so it will know you more, better and more than you would ever see before.
- 7:46Okay, so I think this is taking me into another area that I want to talk about which has been a really big talking point on the show and that is what the grocers need to do to develop their
- 7:56own AI assistant capability versus what should they expect from shoppers who are using, you know, the assistants, the chatgpts of the world.
- 8:05How do you see what shoppers should go outside for versus what they should stay within the Albert Hein ecosystem for?
- 8:14I think it's a very good question and I think my, my true and honest opinion is that I think we're uniquely positioned to win and lead that race in agentic commerce because we have trusted brand.
- 8:26I mean we're 140 years old.
- 8:27Yeah.
- 8:28We're a household name.
- 8:29We've built that trust with our customers over time.
- 8:31We've got a deep customer relationship.
- 8:34I think that leads to very, very rich first party data.
- 8:38Not just transactional data like some others might have, but we have really rich, as I just discussed with a persistent memory rich first party data.
- 8:47So we know you better than anybody will ever know or at least for the short and midterm.
- 8:52And in addition to that, I mean we have a strong own brand offering.
- 8:56So in the Netherlands we have over 50% own brand share sale.
- 8:59Some incredible products.
- 9:00Incredible products.
- 9:01So we're proud of every own brand product.
- 9:03I think that's something to emphasize.
- 9:06And also customers are seeing that because they're buying 50% of their shopping there.
- 9:10And then lastly grocery is about large combined baskets of 30, 40, 50 articles spread over fresh ambient frozen which is really complex.
- 9:23And then you have the store network and the last mile because we do 12% of our business is home delivery ecom.
- 9:28So not pick from store but home delivery.
- 9:31So we have all that infrastructure and that knowledge of the customer and the trusted brand.
- 9:37I think with our in house capability of truly building AI at scale as we've proven so far, I think we can win this race and be the leading party in asente commerce.
- 9:47Okay, so is that so what is the kind of customer experience end goal that you think is going to shake out?
- 9:52Let's say we're having this conversation in five years time.
- 9:54What's going to be happening now?
- 9:55Well, five years, I always, I mean two years ago I didn't know we were having this conversation, let alone five years from now.
- 10:01But I think as I said, I mean it's going to be proactive towards our customers and not reactive.
- 10:08Don't wait for your customers to ask you something.
- 10:11Make sure you use everything you know about the customer and everything you know about your products and your organization to serve your customers better proactively.
- 10:19So that's what I talked about.
- 10:20Highly personalized meal planning ready for you.
- 10:23Only you have to check out pre filling the essentials, making sure that you help your customers in all sorts of ways and really be there for your customer rather than, and be proactive rather than have them interact with
- 10:36you by their own initiative.
- 10:37Okay, Sched.
- 10:39How proprietary is this to Albert Hein and the Dutch market?
- 10:43How transferable is it across the other market and the other banners that hold al operates?
- 10:48Yeah, I think that's a, that's a very good question.
- 10:50What we've built is if we, you look at the Netherlands, what we've built is we actually build a foundation.
- 10:55So we wanted the one secure sort of governed foundation under anything we do with AI.
- 10:59So it's not individual use cases, individual opportunities.
- 11:03So we built basically a platform that's AI agnostic.
- 11:07So basically whatever LLM people want to talk about, who's going to win that race, I couldn't care less as long as my platform and my foundation is agnostic for whichever one I can use.
- 11:17So again, I don't know who's four weeks from now what's going to be the news flow.
- 11:21I just know that I'm flexible, adaptable and agnostic of who wins.
- 11:25And then the platform is built on top of that.
- 11:28Having all the security in the platform, having the finops in the platform, the load balancing, anything you would do with normal software engineering to make it really scalable and super robust.
- 11:37On top of that we have sort of reusable building blocks that our engineers, our in house engineers can use so they don't have to repeat and rework that every single time.
- 11:47So their speed to market is really fast.
- 11:49And on top of that we're building all the Agentix solutions.
- 11:52But I think what's most important is, and that's pretty unique also for our company because we're great local brands, we're scaling this now and making the platform available to all European brands and all U.S.
- 12:03brands.
- 12:03Right.
- 12:04And we're actually going to co develop together from now on.
- 12:06So it's going to be across the whole alto has group.
- 12:08So this is going to be before the end of the year.
- 12:10That's going to go live.
- 12:11So that should help accelerate our position there.
- 12:14Okay, so more news by the end of the year.
- 12:15Really interesting.
- 12:17Fascinating.
- 12:18Before we let you go, I just want to look internally and I know Arro Delez has been developing AI assistance for its store associates.
- 12:26So what do they do and what impact is it having on their day to day work?
- 12:31Yeah, I think that's a great example.
- 12:33I'd love to share some of that.
- 12:35So at Albert Hein we have a very, very centralized model where we have central replenishment and we have a lot of, lot of people in our stores.
- 12:43We have over 80,000 people that are often youngsters that do this as a part time job.
- 12:47Right.
- 12:48So having many youngsters in our teams that we, that we see as proud colleagues, but they're a high turnover of people going out to study and etc.
- 12:57So how can we help them and empower them to help our customers better?
- 13:01So I give an example.
- 13:02My daughter used to work in a store.
- 13:04She's 18 now.
- 13:05She went off to study, but when she was 16, 17.
- 13:07And I said to her on Saturday, you come back from store.
- 13:10So how did it go?
- 13:11She goes, I got so many customer questions.
- 13:13I walked up to the lady working in the bread department every time to get the answer and then go back to the customer.
- 13:18Okay.
- 13:18So what we did was we built an AI assistant for our store employees to really help them answer questions for customers in their own app on their phone.
- 13:28And so they can just type in the questions, get the answer, help the customers.
- 13:32And the customers were actually really happy because they got straight away the answer.
- 13:35So we're happy customers.
- 13:37Yeah, the employees found that and the colleagues found that they're really empowered and they feel like they can help the customers rather than be out of their depth sometimes.
- 13:48And then again for us it's productivity gains.
- 13:50Right.
- 13:50So they can focus on their work in the meanwhile.
- 13:53So we were really happy with what we did there.
- 13:55But also we always start with the real problem that we're trying to solve.
- 14:00We never start with technology.
- 14:02So the problem we try to solve is how do you help your colleagues to serve our customers better?
- 14:07And we see some of the bottlenecks there.
- 14:10We actually, funnily enough, we actually made a dummy AI and sit in the back room for three weeks in three stores whilst learning what they were asking so we told them it's AI, but it wasn't.
- 14:20And we just learned what they're asking and that's how we can prioritize based on value to see where are the main use cases, how can we help them best, etc.
- 14:28Without building something first and then hoping that it will work.
- 14:31So it's a sort of division that we have.
- 14:33Super interesting.
- 14:35We could talk all day, but we need to let you go.
- 14:37Thank you so much for joining us.
- 14:39And thanks for the teams of Fusion and Grocery Shop for making our coverage of this conference possible.
- 14:44And stay tuned for more.