Chinese omnichannel retailer Rainbow has opened a digital-twin enabled supermarket in Shenzhen.

The upgraded Shahe Sp@ce supermarket was developed in collaboration with electronic shelf label (ESL) producer Hanshow and Rainbow’s technology subsidiary Lingzhi Digital Technology.

This is Rainbow’s first store digital twin implementation, bringing together real-time store visibility, decision support and operational execution within a live retail environment.

Operating a nationwide network of shopping centres, community retail centres and supermarkets, Rainbow has been exploring ways to improve operational efficiency and customer experience. The Shahe store brings data from connected IoT touchpoints into a unified digital representation, linking real-time sensing with analysis, decision-making and execution.

Located in Shenzhen’s Nanshan district, the supermarket has served the local community for nearly 17 years. This year, the wider Shahe Rainbow development was upgraded into an urban lifestyle destination that brings together retail, dining, services and entertainment. The transformation reflects Rainbow’s broader ambition to expand the role of physical retail beyond transactions and create a more engaging destination for the community.

At the heart of the project is the newly opened Sp@ce supermarket, built around Rainbow’s city garden and food hall concept. The supermarket has nine experiential areas designed around different food, lifestyle and community occasions. The store also incorporates Rainbow’s intelligent fulfilment centre, supporting home-delivery services and strengthening the connection between in-store shopping and Rainbow’s broader omnichannel retail model.

The store brings together more than 17,000 IoT devices and AI capabilities to provide greater visibility into store conditions and support more timely operational decisions and actions.

At the supermarket, digital technology is integrated throughout the shopping journey instead of being presented as a separate technology showcase.

Hanshow NexConnect smart cart, integrated with Lingzhi’s proprietary AI shopping assistant, serves as a digital companion while shopping, providing access to product information, in-store navigation, promotional offers and checkout services. This gives shoppers greater visibility over their purchases and streamlines key shopping activities.

At the shelf edge, Hanshow Nebular Ultra ESLs support centimetre-level product positioning, serving as a key component of the digital-twin infrastructure. The tap-to-interact functionality extends the ESL from a price display medium into an interactive service touchpoint. With a tap, shoppers can access product details, traceability information, usage guidance and promotional content.

Together, these customer-facing touchpoints help connect products, content and services at the right moment and location, bringing digital capabilities into real shopping scenarios and creating a more intuitive shopper engagement throughout the customer journey.

Hanshow combines ESLs, location intelligence, AI vision and robotics to support out-of-shelf identification, merchandising management and shelf execution. These capabilities help retailers improve visibility into shelf conditions and product availability.

Leveraging its proprietary Bailingniao retail AI model, Lingzhi Digital Technology contributes digital technologies that support sales forecasting, replenishment strategies, task management and decision support, helping store teams make more informed decisions and respond more effectively to day-to-day operational needs.

By connecting store visibility with timely action, the project moves store digitalisation beyond simply recording what has happened. When store conditions can be identified and addressed more quickly, shoppers benefit from more timely product availability and a smoother shopping experience. Store staff can also focus more of their attention on tasks that require judgement, communication and customer service.

The project demonstrates how digital-twin capabilities can be deployed in a live retail environment to connect sensing, analysis, decision-making, execution and continuous optimisation within a unified operating model.

“Our goal with Sp@ce 3.0 is to create a better everyday shopping experience built on quality, freshness, transparency and trust,” said Xiao Zhanglin from Rainbow (www.rainbow.com.cn). “The Shahe Sp@ce supermarket brings digital visibility into day-to-day operations, helping our teams respond faster and more accurately, while allowing store employees to spend more time on the service and experiences that matter to customers.”

Relvin Sun from Hanshow (www.hanshow.com), added: “The true value of technology lies in helping retailers operate more effectively and creating a more natural experience for shoppers.Through our collaboration with Rainbow and Lingzhi Digital Technology, we are bringing together intelligent store infrastructure, retail AI and operational expertise to support daily store operations and customer experience, while continuing to strengthen Hanshow’s store-digital-twin capabilities through real-world retail applications.”