NRF 2023: Why ‘growth’ was on everyone’s mind

After several years of Covid-related disruption, it was great to return to a fully-fledged and buzzing NRF 2023.

Over the last few years, the retail sector has once again proven its resilience. Rapidly adapting to change and circumstances, in some cases, rolling out multi-channel operations almost overnight and finding ways to manage issues in supply chains. Whilst there are of course challenges on the horizon, 2023 should mark the first full year of relative ‘normality’ (we hope!) and one word stands out from the analysis of conversations at NRF put together by Retail Info Systems…’growth’.

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This was a theme that I witnessed throughout NRF. It was interesting to hear Walmart U.S. President and CEO John Furner speak with Harvard Business School’s James Cash with John remarking that the “new normal is in fact the old normal” – his point being that technology might have changed the way things are done, but the driving factors remain the same. Customers still want cost-effectiveness, ease, choice, and a personalized experience.

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One of our long-term customers Macy’s has spent the last few years working on its digital strategy to gear itself up for growth. Chairman and CEO Jeff Gennette remarked that it had

“totally redone” its supply chain and worked with suppliers on how they convey their freight. He said the company had become much better with data science, allocation science, and pricing science, all of which is enabled by digital strategy.

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Another of our long-term customers, Fast Retailing spoke at the show with CIO Takahiro Tambara. One of its largest brands Uniqlo already uses Avery Dennison RFID technology for inventory management and self-checkout – a development which Takahiro remarked results in a “seamless shopping experience”. But their plans for RFID are expanding, with Takahiro noting that “even before the pandemic, we already worked on transforming our supply chain, including the introduction of RFID” but he now wants to build a supply chain that can “deliver what customers want whenever, wherever they want.”

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One of the long-term trends we’re particularly excited about is re-commerce – schemes run by retailers which enable customers to sell used products back to them for onward sale to new customers. It’s a positive move for the planet and enables consumers to keep their wardrobes fresh, while also creating new revenue streams for retailers. Attendees at NRF remarked that this sector is growing an incredible 11x faster than traditional retail with Paige Thomas, President and CEO of designer chain Saks OFF 5th remarking that resale is “not just a trend, it’s a lifestyle’.

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The common denominator in all of these trends is digital transformation and sustainability. Technology that works seamlessly across the supply chain and customer journey, providing retailers with the insights they need to make quick decisions that enables them to run efficient customer-focused operations, and as such, ensuring we are protecting the planet by reducing waste and inefficiencies.