The cold January New York winds can’t hold us back, when those of us with an (almost) unhealthy obsession with retail descend on the Jacob Javits Convention Center early every year to attend NRF: Retail's Big Show. Under one – huge – roof, we get the opportunity to see and to hear from the leaders, the innovators, and the big thinkers of retail as they share their visions and views of the current state and future direction of the industry.

And after the giant presentation theatres emptied out, and the hundreds of exhibition stands were packed away after three incredible days, it was time to draw breath and reflect on what we learned – and whether, as many suggested, we are entering a “Golden Age of Retail”.

It is difficult to summarise the breadth and depth of the content at this year’s Big Show, but a few themes and insights stood out.

Customer Experience Really, Really, Matters

One of the most standout themes – whether explicitly or not - was the importance of the customer experience. Retail has long been heading in this direction: the “Experience Economy” is nothing new, and the pendulum continues to swing further and further towards customers calling the shots on how they want to be served.

The customer experience is, simply put, the sum of everything a retailer has and does: stores and staff, range and selection, price and payment – the list goes on, and the customer is at the heart of it all.

“That’s how retail works: If you’re not offering customers what they want, they’ll find someone who will”
– John Furner, President and CEO, Walmart U.S.

As Matt Shay, President and CEO of NRF put it, the customer is at the “centre of the experience”. This means retailers need a deep understanding of the customer – what are their expectations, their priorities, and what matters to them. Again, perhaps nothing new – except much of what we understood about the customer last year has evolved again this year and will do so again next year.

Retailers need to move ever faster just to keep up: getting the fundamentals right is expected. Tidy, welcoming stores, helpful staff, stock and selection – these are table stakes. Omnichannel is expected. In fact, many believe that we have already moved in to the post-omnichannel era – unified commerce, going beyond just connecting customer-facing channels but also truly integrating with backend operations to provide a much more seamless experience for both retailers and customers.

There are other components of the customer experience that matter. Purpose matters – particularly for younger demographic cohorts. Authenticity matters. But so does convenience, whether that is location and locality, or a fast and efficient checkout experience.

It’s the Economy, Stupid

A lot of focus was given to the economy – when is it not? Arguably, economic performance has the biggest influence on consumer sentiment. Likewise, it impacts costs for retailers from the supply chain to payroll, all of which ultimately get passed on to customers.

Goldman Sachs Chairman and CEO David Solomon shared his viewpoint of challenging economic conditions in many places, but noted an incredibly resilient economy in the US which has benefited from what he described as “the long tail lag” of fiscal expansion and post-pandemic stimulus programs. But he also pointed out that it was in a fragile place with ongoing growth far from given.

“The Body Builder Consumer, jacked up on stimulus but with very little body fat if things change.”
- David Solomon, Chairman and CEO, Goldman Sachs

And there may indeed be darker economic clouds gathering. 2025 is likely to see more uncertainty, bringing a cocktail of change around interest rates, tariffs, and deregulation. Geopolitical tensions continue to weigh on consumer confidence, international trade, and supply chains. Last year, some experts suggested that we had entered a period of permacrisis – an extended period of instability and insecurity. It turns out that this was a sadly accurate observation.

The One About AI, Part Four

The AI hype cycle continues, even intensifies. It has been a hot topic at the Big Show for the past three years and is certain to be so for some time to come.

AI was once again everywhere at the Big Show. Nearly every keynote speaker referred to it. Sessions were dedicated to it. Numerous exhibitors were showcasing their AI-enabled solutions.

But it was interesting to understand the different perceptions of what AI can do for retail. More than one keynote speaker paraphrased Amara’s Law, drawing parallels with the dot com boom.

“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”

- Amara’s Law (Roy Amara, President of the Institute for the Future)

Many offered a quick reminder that AI, in one form or another, has been around for a long time. But advances in computing power and speed have made it increasingly accessible, and it is rapidly becoming an underlying technology that gives us tools to help simplify and power our lives.

In retail, it is the supply chain above all else that will benefit from AI. But there were also several examples of AI being deployed to create digital twins that help optimize store layouts, and tools to help store staff and associates offer better, more personal, and more informed service to customers. It was noted that although some of the retail industry has embraced AI, we are still early on the curve. While it has enabled efficiencies in many areas, fundamentally altering retail business processes presents a significantly more complex challenge.

Contradiction and Paradox

A fascinating paradox was highlighted during the event: the duality of innovation and nostalgia. On one hand, we see the relentless demand from consumers for more technology and innovation to bring ever greater convenience and better digital experiences. And yet, despite this fervour, there is a growing yearning for the past – a nostalgic desire for simpler times, when human interactions were more personal.

Once again (and maybe surprisingly), it is the younger cohorts who are driving this trend – Millennials, Gen Z, and even Zalphas (yep, it’s a thing – Google it…).  Even more surprising is the rise of anemoia (being nostalgic for a time they have never known – Google that one too).

Other contradictions were more obvious: some retailers saw opportunity and growth in shopping malls, while others were making a strategic withdrawal. Some retailers believed investment priority should be in developing digital channels, while others focused on the analogue experience. Products vs experience. Online vs stores. People vs profits.

Choosing the right path is a permanently pressing problem for retailers. Because customers, too, have choices: where to shop, what to buy, how to pay... Every customer is unique, and getting it right every time for every customer can be a considerable challenge. If they don’t like what they see, it has never been easier for customers to seek an alternative elsewhere. Best Buy CEO Corie Barry summed it up nicely by suggesting that the path forward for retailers is to “embrace paradox”, and that “either / or” should instead be “and”.

There was a sense that the industry has finally been able to move on from the pandemic, but has had to rapidly evolve and adapt in its shadow. There is an almost perfect storm on the horizon, fuelled by the convergence of new technologies, less loyal customers, and a buoyant - but fragile - economy. Retailers will be faced with many headwinds that they need to navigate, but for those who find smooth air it really could be the beginning of the Golden Age of Retail.

And with so much focus on retail innovation, experience, and choice, the Golden Age of Retail promises to be a golden age for customers too.

To find out more about how integrated technology can drive the customer journey in your stores, providing better human interactions while bringing greater efficiencies to business, take a look at Glory’s retail solutions. Better still, get in touch and let’s talk.