Of the tech trends impacting retail in 2025, AI stands out as the most transformative. Retailers who have not yet begun to explore its potential would be well advised to do so, as AI is poised to play a lasting and increasingly critical role in the industry.
“Retail in general is really undergoing a massive transformation,” said Sorin Hilgen, group chief digital officer & U.S. CIO for EG America (EGA), which has more than 1,500 stores across 30 states. “AI is really at the core of how we’re evolving.”
At EGA, this transition is focused on enhancing customer experiences and operational efficiencies.
“AI is no longer a future initiative — it’s actively driving real impact across multiple areas in our business from optimizing pricing and security to personalizing customer interactions,” he said. “AI is playing a critical role in how we all operate.”
EGA is in the early stages of implementing AI-powered demand forecasting and automated ordering.
“While we’ve built a strong foundation with modern space optimization systems, we’re now working to ensure all of those subsystems are providing the necessary data for these AI-driven forecasting platforms,” Hilgen said. “The goal here, obviously, is to reduce waste, improve stock availability and create a more agile supply chain.”
EGA is also running AI-driven price optimization cycles for in-store products as well as for fuel.
“AI enables us to make real-time adjustments based on demand patterns, competitor pricing and other factors to ensure that we remain competitive while maximizing profitability,” Hilgen said.
The company is beginning to look at how it can leverage AI to optimize SKU mix, localization and ensuring stores are stocking the items most relevant to its customers. “Obviously this will help improve sales performance while reducing unnecessary inventory,” Hilgen said.
Hilgen also pointed to the aforementioned AI-driven aspects of its loyalty system as one of the most exciting initiatives.
“This allows us to hyper personalize offers and automate customer communication,” he said. “If I’m a tea drinker, don’t give me a coupon for a cup of coffee. …Give me a coupon for a cup of tea, right?”
In other words, AI is helping retailers move beyond a one-size-fits-all approach to deliver promotions that resonate with individual customers.
On the security front, AI is helping detect fraud and theft faster. EGA’s AI-powered resource protection platform allows for swift action — something it couldn’t do before because of the sheer volume of data, Hilgen explained.
EGA is also leveraging AI to drive efficiencies and store operations. AI can pinpoint areas that need attention at individual stores, soon supporting team members with AI-powered chatbots that will streamline training and onboarding and assist in daily operations by providing instant relevant answers to employees.
For example, if a new employee needs to clean the coffee machine but forgets the process, the chatbot could provide the steps. EGA is still at the early stages of looking to leverage this technology, but Hilgen noted that the long-term vision would be to create a centralized knowledge base powered by AI.
Additionally, EGA is investing in AI-driven analytics, empowering teams to ask questions via chatbot about the data and get instant, meaningful insights. The goal is to provide relevant data to teams as quickly as possible.
EGA’s efforts reflect a growing trend across the industry as more retailers integrate AI into daily operations and long-term strategy.
RaceTrac, which operates 592 RaceTrac and 241 RaceWay sites in 14 states, as well as 1,066 Gulf locations, is focused on making sure its data is high quality and well managed, so it has a solid foundation to build on as it moves forward with AI use cases, and so they can be launched “timely, securely and with high quality,” said Tyler Grubbs, executive director of digital & store technology for RaceTrac. “We have enabled or POCed (proof of concepted) several AI solutions from chatbots to computer vision AI.”
He noted that RaceTrac plans to continue testing, learning and implementing high-value use cases when it comes to AI.
H&S Energy’s approach to AI in 2025 builds on early adoption and continuous innovation, according to Fidaa Mohrez, senior director of operational systems, H&S Energy Group, which operates 287 c-stores in California, Nevada and Oregon under the Power Market, Pinnacle 365 and ExtraMile banners. “We extensively use AI for data analysis, which has significantly enhanced our ability to structure, plan and execute projects. AI plays a crucial role in increasing the quality of our team’s output by providing checks and balances and enabling us to avoid overlooking critical factors,” he said.
Mohrez has noticed many of its software and supplier partners integrating AI elements into their programs as well. “(This) complements our efforts and creates a more cohesive, intelligent ecosystem for operations,” he said. “Overall, AI has become a fundamental part of our strategy, driving efficiency and innovation across the board.”
While the above convenience store retailers are embedding AI into core business functions, others are still experimenting with what Mike Templeton, partner with c-store advisory firm NexChapter, calls “consumer-grade AI” like chat prompts and image generators.
“These are fun to play with but aren’t likely to have much impact on the business,” Templeton noted. “Retailers who identify real impact areas for AI are likely to be deploying off-the-shelf or embedded models within the business tools they are already using. When AI can speed up a process or eliminate manual tasks, that’s where the unlock will come from.”
