Like the city itself, NRF Retail's Big Show in New York recently was unbelievably big, unashamedly brash, incredibly interesting… and impossible to summarise in a three minute read.

 

The main Expo hall was predictably heaving with attendees from across the world, keen to get a look at the latest retail technology and innovations. Glory, of course, had an impressive presence at the event, showcasing our range of new CI-X devices, self check-out solutions, and how these can all be connected to the back office and beyond with our UBIQULAR cloud-based software solution to deliver real insight and efficiency to cash operations in stores.

 

But beyond the bright lights and clamour of the Expo halls at the Jacob K. Javits Convention Centre, NRF Retail’s Big Show is a unique opportunity to hear from some of the biggest names in retail about their thoughts and views on the trends and technologies that will shape the year ahead and beyond. With over 350 speakers, there was a lot to be learned, but what were some of the stand-out themes?

 

It’s the Economy, Stupid!

In crowded presentation theatres, there really was no space for any elephants in the room, and so it was that we heard several very frank assessments of the current macroeconomic environment. With so many factors coming together - the post-lockdown era, global conflict, inflation, and many more – the economic outlook for the months ahead is challenging, wherever you are in the world. Even in countries not technically in a recession, many consumers either believe they are or are about to be. And this has had a profound knock-on effect in shaping consumer behaviour and how retailers need to respond. This is an undeniably difficult period for many retailers, but there are glimmers of light: many analysts are now suggesting that while the downtown and possible recession will be sharp, it will be followed by a long period of recovery and retailers need to be prepared.

 

Customers: Constant Change

“The customer is always right”, the old adage goes. Well, whether they are right or not, they certainly have leverage in retail relationships today. Loyalty in retail is usually just a result of the absence of anything better, so retailers need to be continuously seeking out ways to improve the customer experience. Customers don’t think about retail as either in-store on online. They just think about how easy their shopping experience was. That line between physical and digital has got a lot more blurred as the world responded to the pandemic, and omni-channel came of age.

 

The customer journey needs to be personalised. Serve everybody the way they want to be served. Every point of friction needs to minimised or removed. Technology exists today that can address many of these challenges, including what is often the worst part of the store experience – standing in line waiting to pay. As one speaker observed: “Don’t make people wait to take their money”.

 

Gen Z Has All Grown Up

To some, it may seem like the Gen Y, Millennials have barely made it out of school – but the reality is, they did long ago. Today, it is the digital native Gen Z cohort who are setting the expectations for what the future of retail looks like. Digital first? That is sooo Gen Y – table stakes. The metaverse and digital twins? You bet! While the shape and form of the metaverse is yet to settle, who knew that there already exists a multi-million dollar market selling makeup for digital avatars? And then there is the growing influence of social media, and the emergence of FOLO (that’s the Fear Of Logging Off…)

 

Getting Physical

Digital first, it turns out, does not mean physical stores become a distant afterthought in the scramble to get newer and better apps launched. Apps and ecommerce growth is happening anyway – the pandemic necessitated many retailers to turbo charge their digital and omni-channel plans. But there is a growing weight of evidence and research that shows that in some retail segments, digital growth may be at a kind of inflection point: there’s no question that digital channels continue to grow, but the rate of growth has slowed and has now been overtaken by the rate of growth of physical stores. In the new, post-lockdown, omni-channel era, stores provide the essential competitive and strategic advantage. They are the essential nodes of omni-channel networks. They provide differentiated customer experiences and real convenience. As Marvin Ellison, Chairman and CEO, Lowe’s Companies Inc. observed: next day delivery from an online retailer sounds great – but not if you have a burst pipe.

 

People Make the Difference

If the physical store enables differentiated customer experiences, then it is delivered by the staff. Whether they are “associates”, “colleagues”, or “team members”, it is the labour force who will ultimately create memorable and joyous shopping experiences for customers. These are what create connections and loyalty with customers – not hitting the “like” button. Staff need to be freed up as much as possible to engage with customers, which in turn means automating as many of the more important but mundane or repetitive tasks (such as cash management) as possible.

 

With a tight labour market, staff retention is near the top of many retailers’ agendas. Not only will tenured staff be better able to deliver those customer experiences and project the company culture, but there is also an acute awareness having staff in place and being prepared for the economic recovery that many analysts are now pointing towards on the horizon. Wages and benefits will clearly be a part of this, but so will ensuring staff have “better jobs” by removing the friction in the work they do, automating those tasks that can be automated, and leaving people to focus on the tasks that are inherently human.

 

A Sustainable Future

Speaker after speaker talked about sustainability; sessions devoted to the topic were full to capacity. Sustainability and ethics are unquestionably hot topics. But who is responsible for sustainability? Is it consumers, and the choices that they make? Against the backdrop of a cost-of-living crisis, doesn’t price trump any other purchasing decision factor? Or is it the responsibility of the retailer, and the ranges they stock?

 

The answer is a lot more complex. Consumers are increasingly demanding more sustainable and ethically sources products, but do not expect to pay a premium. At the same time, it was noted that people don’t give up on their principles and ethics easily because of price. Meanwhile, producers are seeing the impact of climate change and globalisation, and the simple truth that inaction now will lead to much greater costs in the future. Is it incumbent on retailers to educate and promote sustainability? And not forgetting that investors and the investment community are now taking a much closer interest.

 

There is much to unravel, but what is clear is the prominence of sustainability on the priority list of everybody involved in the retail industry, from the production of food through to back office processes and the cash cycle.

 

The New Normal Is The Old Normal

Technology is constantly advancing, and consumer expectations evolve alongside it. At NRF Retail’s Big Show 2023, the future was on show for all to see and hear. Yet, when it comes to retail, the fundamental principles don’t change: price sensitivity, easier shopping experiences, better access and choice. Never before has not changing moved so quickly.

 

To find out more about how Glory can help your retail business grow, take a look at our retail solutions – or why not get in touch and let’s talk.