Big Show is back at full strength

NRF 2023: Retail’s Big Show showed up in a big way to New York City. At the largest retail industry event in the world, NRF convened more than 35,000 attendees and a record 1,000 exhibitors at the Javits Convention Center to hear 350 speakers in more than 175 sessions.

It was truly energizing to see tens of thousands of retailers and industry partners together again. From the Expo hall and keynote stage to breakout sessions and hallway conversations — everywhere you looked, there was buzz and excitement.

I had the pleasure of sitting down with three retail CEOs for wide-ranging conversations about the state of the industry, the evolution of the customer experience and the outlook for the economy. Here are a few quotes that really stuck with me.

Marvin Ellison, Chairman and CEO, Lowe’s

On taking tough assignments to grow as a leader:

“For the last 25 years, every job that I’ve accepted — including the one I’m in today — I’ve replaced somebody who was fired or pushed out. … Oftentimes those were jobs and opportunities that other people felt the risk was not worth the potential award. But I would raise my hand because it was my way to contribute to the company. It was my way to demonstrate my ability to lead and build teams.”

On what it means if you see a turtle on top of a fence post:

"Growing up in the South, a turtle on a fence post is differentiated. You know he didn't get there alone. Seeing someone like me in in the roles that I'm in and have had the pleasure to be in, you know that it took an incredible team effort and that's exactly what I have at Lowe's and what I've had for the better part of my professional career."

On bringing your authentic self to work:

"As I started to maneuver my career, I oftentimes would find myself being the only Black person in the room, or the only person in the corporate office who has spent time in the store. I was the only this, only that. And I would struggle early in my career trying to fit in, when I came to the realization: 'Why am I trying to fit in when I need to stand out?' So, I decided that my greatest attribute was to be the best, most authentic version of myself."

On being the CEO of a major retailer:

"When people ask me to describe my job, I tell them I get out of bed every day with three things I'm trying to accomplish. Can I create a great place for my associates to work? Can I give the customers a wonderful place to shop? And can I make my communities better?"

Ron Coughlin, CEO, Petco

On the power of data:

"When you are smaller than some of your competitors, you need a customer insight that you can do better than anyone else in the world. For us, it is that 80% of pet parents want to do the absolute best for their pet, but only 50% know what that looks like. That's the opportunity for us. We repositioned the company as a health and wellness company. Second, 54% of pet parents want a one-stop shop and it didn't exist. … It was a big opportunity, and we retooled the company against those two insights."

On adapting the business to demographic shifts:

"One macro dynamic that I find really interesting is deurbanization and the shift to rural. Rural populations are growing, and rural isn't the old definition of rural. … We launched a Petco Farm and Feed, so all of a sudden we’re in the chicken business. We’re in the bovine business. We’re in the equine business. I’ve never been at a grand opening that had horses before. It was super fun, and these are underserved markets."

On the pace of change and innovation in retail:

"I went from PepsiCo to HP because I wanted to be in tech. I like the speed of tech. I thought that was the fastest category. … Now I will tell you retail is moving just as fast. If I'm transforming a store into a hospital, a salon and a school room, that's a massive change. If I'm changing my old-school DC format to automation, that's a big change. If I'm also fulfilling 70% of my orders through our pet care centers, that's a big change."

On personalization:

"The word 'personalization' gets thrown out often. I would say we're in the first inning and a half of personalization and where that goes is going to be one of the most profound transformations in retail and for our business."

Rodney McMullen, Chairman and CEO, Kroger

On the impact of COVID-19 on Kroger’s store associates:

"Our associates found they can do a lot more than you realize when you have to — in terms of being able to help support the community, help support each other and get a lot more done, because you focus on the things you have to get done as opposed to the things you kind of think you want to get done. Also from a pride standpoint, our associates really found out how important they are to the local communities."

On the importance of an omnichannel customer experience:

"We like to try to do everything we can to make it easy on the customer. They'll engage with us in a store, they'll get one-hour delivery or 30-minute delivery, they'll get next-day delivery, they'll use our app to put their shopping list together, they'll download their digital coupons to help stretch their budget. All they talk about is being inspired and getting the food they want. They don't ever talk about [shopping] in terms of online or in-store, they just talk about it in terms of what's easy for them at that particular point in time."

On changing consumer preferences:

"I always tell people that the only thing I know for sure is that people are going to keep eating. How they eat? I guarantee that will change. It's our job to continue to support customers and communities to eat the way they want to, and it has to be a good value for the money, it has to be amazing quality and it has to be easy — however somebody defines 'easy.'"

As we settle into a new year with economic uncertainties ahead, retail remains a dynamic, challenging and growing industry with a strong future. At NRF 2023, one thing was clear: No matter the economic environment, consumers can continue counting on retailers to provide quality products, affordable prices and exceptional experiences.

On behalf of the NRF team, we are grateful for everyone’s attendance and support of NRF 2023: Retail’s Big Show. Here is a recap video with a few other key highlights.?