Zhongtai: The AI transformation of offline retail is still in its early stages, but the industry implementation is expected to accelerate.

Zhongtai published a research report stating that the current mainstream route for AI in offline retail overseas includes smart shopping carts, store inspection by Siasun Robot & Automation, SaaS platforms, store camera machine vision, and AI shopping assistants on APPs. The related industries in China are still in their early stages, but in the future, as technology evolves and commercialization gradually takes place, relevant companies will gradually benefit. Zhongtai's main viewpoints are as follows: In offline retail, the expected divergence is greater. The reason for conducting research in this area is mainly based on the following points: First, the firm judges that this wave of AI technology cannot be separated from offline terminal scenarios. Unlike the internet wave, this round of AI is directly related to terminal scenarios. The offline retail format, as one of the core consumption terminal scenarios, is an inevitable intersection of physical AI and consumption; second, offline retail is a direction with significant expected divergence. As a traditional consumption channel, the market has not given offline retail high attention or expected prosperity. Any long-term industrial trend transformation will bring better odds for investment (such as the previous round of supermarket adjustments). Therefore, sorting out the development direction of overseas offline retail formats during this round of technological transformation has certain foresight in both the industrial and investment ends. The application of AI in offline retail is expected to extend beyond mere "cost-saving" in the future. The market currently generally believes that the role of AI at offline store terminals is primarily "cost-saving," that is, improving efficiency and saving costs. Several technologies mentioned in this report have provided feedback in practice that new technologies help enhance average transaction value or revenue. Furthermore, as technology gradually matures and iterates consumer scenarios, there is hope to gradually derive new business models. For instance, starting in 2024, Instacart will launch an advertising business on its Caper smart shopping carts, and advertising targeted at offline traffic is expected to become an important monetization method. In addition, the commercial value of data based on customer consumption behavior is continuously being explored. Although the firm has not yet seen a clear separate charging model, it may still become a significant monetization channel for supermarkets in the future. Long-term outlook: Overall still in the early stages, with accelerated industrial implementation expected. There are several bases for the expectation of accelerated industrial implementation: First, the deployment of Caper smart shopping carts is expected to increase by 200% year-on-year in 2026, with the addition of new customers including the UK-based Morrisons supermarket expected in 2026. In January 2026, Hanshow Technology announced an agreement with major Australian company CR ASIA Woolworths, expecting to deliver around 10,800 smart shopping carts to approximately 300 stores in the initial phase. The firm judges that as technology and supply sides gradually mature, smart shopping carts will become an important lever for the future iteration of the offline retail industry. Second, based on information exchanged by Walmart in June 2026, the user growth of Walmart's Sparky AI assistant increased by over 110% compared to the previous quarter (Q4 of fiscal 2026). From the beginning to the end of Q1 of fiscal 2027, the total gross merchandise volume (GMV) facilitated by Sparky grew by over 150%. The AI shopping assistant has begun to be gradually integrated into the ecosystem of leading companies and contributes to revenue growth, with the industrial trend expected to continue to spread. Third, in July 2026, multiple media outlets confirmed that TESCO began piloting Siasun Robot & Automation's inspection in stores in the UK. From an investment perspective, it is recommended to focus on two main lines. First: product and solution providers, such as Amazon, Walmart, and MAPLEBEAR overseas; and Hanshow Technology, DMALL domestically. Second, the scenario side of offline retail implementation, mainly concentrated on leading listed companies in the domestic offline retail sector, such as Yonghui Superstores, Jiajiayue Group, and Chongqing Chongbai Technology Group. From the perspective of investment pace, the current domestic field is still in its early stages and has not formed a consensus. The firm believes that the market needs to form consensus based on at least several prerequisites: First, offline retailers, as scenario implementers, need to conduct small-scale trials of technology before large-scale application, establishing an industrial trend; Second, AI applications must show a significant boost to the income and profits of offline retailers. From the perspective of domestic industrial trends, technology will ultimately not be an obstacle; whether it can bring commercial contributions to offline retailers will be the key to implementation. Risk warning: There is a risk that store operations may not meet expectations, a risk that technology implementation may not meet expectations, and there may be risks associated with the public information used in this research report being outdated or not updated in a timely manner.