NRF report

The US retail industry gathered at the NRF Big Show in New York in mid-January looking for answers to what 2024 will bring. So what did we learn?

Well firstly we found out that attendees really wanted to be there, because around 40,000 visitors attended and both the conference sessions and the expo floor were jam packed for three days. It’s worth considering that day one was a Sunday and day two a public holiday (Martin Luther King Day), but seemingly that did not put anyone off.

Despite huge amounts of caution about the 12 months ahead, not helped by the prospect of a highly divisive and distracting Presidential election in the latter part of the year, going into the show the American consumer had done their bit and just as in so many previous downturns had once again continued to spend through the holiday season.

So while things are hardly buoyant, shoppers have not battened down the hatches in the same way as the European consumer.

AI was the standout theme of the three days and the intensity of interest in the subject certainly shows no signs of waning. The technology-driven exhibition space was firmly focused on AI solutions, while many of the conference sessions featured AI development across all aspects of retail.

As ever, there is little tangible right now, other than more advanced uses in online bots and also in workflow optimisation and staff prioritisation.

The other big tech trend which has potentially major implications for store portfolios is the growth of retail media networks. Many US retailers have developed major platforms to partner with brands and while much of the attention has been on online advertising and promotions (think Amazon Ads), the bigger opportunity lies in in-store media.

From geo-locational promotions to the roll out of in-store radio, and from Walmart to 7-Eleven, US retailers are throwing a lot of investment into this sector, anticipating a potentially hugely lucrative and, importantly, new income stream.

The concept of store as a media channel may finally be coming true, two decades after it was first mentioned.

It’s worth noting that this is a trend that may develop differently between the US and Europe, with far tighter restrictions and privacy rules in the latter meaning that just because technology is capable of doing things does not mean it will be allowed to.

In terms of stores, few retailers are talking about closing any more of their stores. The great portfolio consolidations in North America appear to be over, for the time being at least, and instead the likes of Levi’s, BJ’s Wholesale Club, Dick’s Sporting Club, Barnes & Noble and Under Armour talked about expanding their estates into new markets.

No longer does that mean widespread roll outs across 50 or 100 malls, but instead targeted openings in key markets, with the stores as pivotal components of omni-channel strategies that include the web, mobile, social media and, of course, increasingly artificial intelligence.

New York played the perfect retail host of course, with Hudson Yards right next door to the Javits Center venue and Crate & Barrel and Restoration Hardware with new retail concepts to show off in the city, while legendary grocery chain Wegman’s has opened its first Manhattan outlet, all banking on the spending power of the ever-reliable American shopper.

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PHOTO CREDIT: Jason Dixson Photography/National Retail Federation

The photo is of: Levi’s president Michelle Gass and NRF president Matthew Shay