My year can officially start now that I have spent a long weekend with 40,000 of my closest retail friends in New York City. The National Retail Federation’s Big Show, is once again in the rear-view mirror. After averaging over 16,000 steps a day, I am happy to get off my feet for a few days. I have been fortunate to have attend this show since the early 2000s. Over the years, so much as changed — from the early days of the internet to the rise of AI today. Here are my observations from this year’s edition:
- Artificial Intelligence (AI) was everywhere! By some reports, there were over 125 booths pitching themselves as some AI type vendor. For anyone scanning the agenda, it felt as if at least 80% of them had some flavor of AI in their title or synopsis. So, what to make of all this buzz? There seemed to be a disconnect between what vendors were pitching and what users were talking about. For example, a session with Nvidia, SAP and Lenovo promised use cases for driving AI adoption but turned into a spotlight into their capabilities instead. On the other hand, retailers like Haverty’s, a furniture company, are still taking a “wait and see” approach with AI. There remains a chasm between the AI hype and practical adoption of it. Vendors may be eager to sell, but retailers are not yet ready to fully invest.
- Have we forgotten the supply chain lessons from the pandemic? Immediately following the pandemic, the buzz I heard around NRF, and in general, was the importance of revisiting our supply chains, and how can we render them more resilient. This topic appears to have faded back into the background for many. Supply chain talk was still simmering, but it was replaced by talk of AI. Unfortunately, we cannot simply stick our heads in the sand when it comes to supply chains. With the transition of political administration in the United States this year, the impact of potential tariffs and the desire for more nearshoring, supply chain will once again be thrust into the forefront. Shaun Bunch from Northern Tool and Equipment made a great point during his session — to paraphrase — retailers need to rethink nearshoring as tariffs are in flux. Is near shoring from China to Mexico such a good idea, if tariffs may force another shift? Have we forgotten how complex and intertwined our supply chains are? Maybe.
- Making stores great again. To borrow a tagline from the incoming American administration, the stores are going to be great again! NRF showcased some exciting technologies on the floor, all focused on making the store a destination for consumers. From more self-checkout technologies and smart shopping carts to AI-powered tools for store associates, the message was clear: stores are regaining their role as the crown jewel of retail. But retailers must move beyond siloed thinking. E-commerce, social commerce and physical commerce are really all just commerce. As Harley Finkelstein, president of Shopify, emphasized, being in the right channels for your consumer is key. And the store has a massive role in this landscape. What do a lot of these store technologies have in common? They are digitally enabled, meaning they are consuming and creating data. To fully empower stores within your broader commerce strategy, focus on strong digital and data strategy — that’s the glue that ties it all together.
So, my year has truly begun. Retail remains one of two industries that touch us all, no matter our day jobs. The other? Healthcare. As we move into 2025, retailers. Must continue to focus on their data, revisit the critical lessons about supply chain resiliency, embrace the resurgence of the store, and pay attention to — but be wary of — the AI hype.
What did you see at NRF?