Online grocery sales grew more than 20% in 2025, with monthly volumes consistently surpassing $10 billion and setting new records at year-end. That demand is fundamentally reshaping how grocery supply chains must operate, moving far beyond replenishment models built for pallets and store shelves.
As retailers transition from store-centric operations to true omnichannel fulfilment, supply chain redesign is urgent. Digital grocery depends on continuous, item-level visibility across the entire network, including precise location, availability, handling, and cold-chain compliance. Periodic scans and manual audits cannot keep pace with the speed and complexity of today’s fulfilment environment.
Wiliot is helping drive this transformation through its Ambient IoT platform, which turns products into connected, data-generating assets. The company is collaborating with Walmart to enable real-time, item-level visibility across the retail supply chain, illustrating how Ambient IoT and Physical AI can unlock live operational intelligence across distribution centres, stores, and last-mile delivery.
Amir Khoshniyati, VP Strategy, Channel & Marketing, Wiliot speaks to Grocery Trader about how eGrocery growth is structurally redefining supply chain design, the operational blind spots exposed by item-level fulfilment, how continuous inventory and temperature visibility improve accuracy and resiliency, and what next-generation grocery networks will require to scale.
Online grocery sales have grown rapidly in recent years. Why does eGrocery require a fundamentally different level of visibility compared to traditional store replenishment models?
Online grocery changes how retailers need to think about inventory. Traditional grocery supply chains were built around shipments of cases and pallets moving from distribution centres to stores, where shelves were stocked and inventory levels were estimated based on point-of-sale data and periodic replenishment cycles.
In an environment increasingly dominated by eGrocery, fulfilment happens at the individual item level and often in real time. Store associates are picking products directly from shelves or fulfilment areas to assemble online orders, which means retailers need to know exactly what items are actually available rather than relying on periodic inventory estimates.
Therefore, inventory visibility needs to be far more detailed and continuous. Instead of simply knowing how much inventory exists at the store level, retailers increasingly need item-level awareness across shelves, back rooms, and fulfilment areas to ensure orders can be picked accurately and efficiently.
How does Wiliot’s platform support that level of visibility?
Wiliot’s Physical AI platform enables item-level visibility by creating a continuous data layer that connects physical products to the digital supply chain. As items move through production, distribution centres, stores, and fulfilment environments, the platform captures real-time data about location, movement, and environmental conditions.
That data flows from Wiliot IoT Pixels into Wiliot’s platform, where it is aggregated and analysed to provide a live view of inventory as it moves through the network. Through a centralised dashboard, operators can monitor product movement, freshness conditions, and item availability in near real time.
Instead of relying on periodic scans or manual updates, the platform provides retailers a more consistent and detailed understanding of inventory across eGrocery operations, helping teams respond faster to changes in demand and product flow.
Why do traditional inventory management systems struggle to maintain accuracy in an omnichannel grocery environment?
Most traditional inventory management systems were designed for a store-centric retail model where inventory generally moved in predictable batches and updates occurred at defined checkpoints. Products were received into stores, stocked on shelves, and inventory levels were updated through point-of-sale data, periodic scans, or scheduled cycle counts.
Omnichannel grocery introduces a much more fluid operating environment. Items are constantly moving between shelves, staging areas, back rooms, and fulfilment zones as store associates assemble online orders while customers continue shopping in-store.
Because traditional systems rely on periodic updates rather than continuous awareness, they struggle to keep pace with this level of movement. As a result, inventory records can quickly diverge from what is physically available, leading to substitution errors, missed items, and fulfillment inefficiencies.
In fast-growing eGrocery environments, how does continuous inventory and temperature visibility help retailers and operators better manage perishables and reduce spoilage risk?
Fresh and perishable goods introduce an additional layer of complexity to online grocery operations. Products like produce, dairy, and prepared foods have limited shelf lives and must often be stored within strict temperature ranges to maintain quality and safety.
Continuous visibility allows operators to monitor not only where items are located but also how long they have been in certain environments and whether storage conditions remain within acceptable thresholds. This makes it easier for operators to identify potential risks before products deteriorate.
With more consistent insight into inventory age and temperature exposure, retailers can rotate stock more effectively, prioritise items approaching expiration, and reduce the likelihood that compromised products reach customers.
How does Ambient IoT differ from traditional barcode or periodic scanning systems in delivering live operational intelligence across distribution centres and stores?
Traditional tracking systems, like barcodes and RFID tags, typically require workers to scan products at specific checkpoints, which means data is only captured at specific moments in time.
Ambient IoT takes a different approach by allowing items to communicate automatically within their environment. Instead of waiting for a manual scan, tagged products can transmit signals that are continuously detected by nearby devices, creating a constant flow of operational data.
This shift changes how organisations understand what is happening in their supply chains. Rather than relying on intermittent updates, operators can gain ongoing awareness of product movement, location, and conditions across distribution centres and stores.
As online grocery continues to scale, how can real-time item-level intelligence help retailers drive profitability while improving overall supply chain performance?
As online grocery volumes increase, small inefficiencies can quickly compound and translate into meaningful operational costs. Inaccurate inventory, substitution errors, and delays when store associates cannot quickly locate items for online orders all affect order margins and customer satisfaction
Real-time item-level intelligence helps reduce those inefficiencies by giving retailers a clearer view of where products are and whether they are available for fulfilment. This improves picking accuracy, reduces wasted labour time, and minimises the number of incomplete or substituted orders.
Over time, that visibility supports broader operational improvements. Retailers can optimise inventory placement, reduce shrink and spoilage, and run fulfilment operations more efficiently while maintaining a better customer experience.
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