Big-box retail briefing gets modern update

Major retailers like Walmart, Target, and Best Buy have expanded beyond selling products. They now build advertising empires, sell consumer data, and compete to deliver groceries faster than Amazon while preparing for a future where artificial intelligence restocks fridges automatically.

Retail’s playbook now extends beyond price and product

For decades, big-box stores competed on selection and cost. Those factors still matter, but the rules have changed. Inflation has squeezed margins, and shoppers now demand same-day delivery, personalized ads, and seamless digital experiences. Retailers have responded by turning stores into data hubs, aisles into ad space, and supply chains into competitive tools.

Walmart has built one of the largest retail media networks in the U.S., selling ad space to brands on its website and in-store screens. Target and Home Depot have launched their own media divisions, monetizing millions of customers who visit their locations or use their apps.

The trend extends beyond general merchandise. Grocers like Kroger and Albertsons use loyalty program data to sell targeted ads. Wholesale clubs such as Costco and Sam’s Club are expanding e-commerce operations, while specialty retailers like Best Buy are exploring new revenue streams.

These changes show a broader shift: retailers are no longer just middlemen. They’ve become platforms with their own ecosystems of services, data, and advertising. The aim is to control the entire customer relationship, from discovery to delivery.

AI is the next frontier—whether shoppers realize it or not

Artificial intelligence is already changing how these companies operate. Walmart uses it to optimize inventory, predicting shortages before they happen. Target’s app suggests items based on past purchases, and grocers are exploring AI applications to enhance operations. The biggest changes, however, are still ahead.

Retailers imagine a future where AI doesn’t just recommend products but anticipates needs. A smart fridge could order milk when the carton is nearly empty, or a pantry might restock itself based on usage patterns. Some companies are testing these ideas. Walmart has experimented with autonomous delivery vehicles and in-home scanners that track low supplies.

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Technology isn’t flawless yet, and privacy concerns remain. Still, the potential is clear: automating routine shopping tasks could secure customer loyalty for years. The speed and control of this shift will determine which companies lead.

The transition hasn’t been easy. Pandemic supply chain disruptions exposed weaknesses in just-in-time inventory. Labor shortages have pushed retailers to automate more tasks, from self-checkout to robotic fulfillment. While e-commerce growth has slowed from its peak, it still outpaces brick-and-mortar sales, forcing investments in both.

Companies once seen as direct rivals now collaborate in unexpected ways. Retailers are forming alliances to expand their reach, suggesting the industry is evolving into a network of interconnected services, with big-box stores at the center.

Mitchell Parton will cover these developments in the Big-Box Briefing, a new weekly newsletter for Modern Retail+ subscribers. The briefing replaces the Marketplace Briefing and will focus on strategies behind retail media, AI-driven logistics, and other industry shifts. It will include executive interviews, trend data, and analysis of how these changes affect businesses and consumers.

The first issue arrives Thursday at 10 a.m. ET, with a 40% discount for new subscribers on a three-month plan. For now, the briefing is available only to paying members.

As retailers adapt, legal challenges have emerged over pricing practices. Discount policies at major brands have drawn lawsuits from competitors.