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NRF 2023: RETAIL'S BIG SHOW

3 takeaways from NRF 2023:

Retail’s Big Show
NRF 2023: Tech, culture and differentiation are driving retail’s
success

Nkongho Beteck, Director, Social Media and Digital Communications , January 31, 2023

Where retail goes, the world follows — from innovations in tech that meet consumer
demand to consciously meeting inclusivity goals and more, there is no better sector than
retail to affect change in our communities.

The 113th annual convention of the National Retail Federation, NRF 2023: Retail’s Big Show,
brought together more than 35,000 attendees and 350 speakers at the Javits Center Jan.
15-17 in New York City to discover new inspiration, new tech and new partnerships leading to
breakthrough ideas in retail.

Here are three takeaways from major retailers on how tech, culture and differentiation are
helping them breakthrough in retail, plus what’s new from this year’s programming.

Tech-enabled customer experiences

The right tech is cost-effective, offers better choice and gives consumers leverage to
customize their experiences.

Understanding the product and the consumer in tandem enables retailers to deliver
exceptional experiences that drive customer affinity, said Richard Dickson, Mattel President
and Chief Operating Officer.

Saks OFF 5TH has a “bulls-eye” or target

customer, which delivers insight into
NRF 2023
merchandising and customer experience
strategy. With so much access to a variety
of products, Saks invested significantly to
provide tech-enabled offerings like its app Did you miss us in NYC? Take a look at
and loyalty program to drive engagement our NRF 2023: Retail's Big Show event
and retention. “From a digital-first recap.
perspective, the consumer gives us an
incredible amount of data through search,”
said Saks OFF 5TH President and CEO Paige Thomas during her keynote address.

And the right tech makes customers’ lives easier but also has an impact on associate
productivity: Tech is enabling associates both on the front line and in corporate offices to
work less transactionally with more purpose, said PepsiCo North America CEO Steven
Williams.

Pilot Company CEO Shameek Konar echoed that sentiment, saying that the more tech can
be implemented to free up associate time, the better the experience. With 46% of the
retailer’s transactions happening via self-checkout, its associates now spend their time
more efficiently helping customers, he said.

As more consumers become concerned with the source of raw materials, LVMH is
embracing tech with blockchain, which allows valuable items to be authenticated. The
retailer is looking for new ways to join the conversation while staying true to the LMVH brand.
“How do you embrace the technology, how do you embrace the community that’s super-
excited about this technology, but use it to introduce the world to what you’ve always been
good at?” asked North America Chairman and CEO Anish Melwani.

Differentiation and
competition
It’s not enough to just keep employees
safe – we must also be concerned with
their overall well-being. “If our associates,
our team members, are feeling good
about where they work and feeling good
about what they do, we automatically get
a much better customer experience,”
Konar said. Anish Melwani, chairman and CEO of LVMH
Moët Hennessy Louis Vuitton Inc. at NRF 2023.
A healthy, motivated, well-trained and
diverse workforce is vital. That means investing in better offices, break rooms, distribution
centers and frictionless jobs to stay competitive and create a successful work environment,
Williams said.

Retailers are investing in and committed to workforces that are not only diverse but
inclusive. Retail has a powerful opportunity to provide a sense of community, stability and
humanity, said Chobani CEO Hamdi Ulukaya, whose nonprofit business coalition Tent
provides employment opportunities for refugees. Petco has created a program to send
employees to vet tech school and Whole Foods is developing professional upward paths for
certain specialties such as meat handling and cake decoration.

Culture impacts the store experience

Retailers are finding their narrative, moving from “brand dialogue” to “brand monologue” to
truly be customer-first. The role of the store is a holistic one and requires knowing that
customer conversion happens long before a purchase. To retain true loyalty means
understanding the many dynamics of the customer, including their desires and their
lifestyle.

The office culture trickles down beyond the corporate team, impacting store experience as
well. Top female leaders at Target Corp. joined Board Chairman and CEO Brian Cornell in a
conversation about how culture can be sustained even across states and stores. Beyond
store layout, Target designs the guest experience based on deep emotional connections;
when guests feel seen, heard and cared for, that brings more joy to their lives -- which
triggers them to care for their community, said Cara Sylvester, executive vice president and
chief guest experience officer at Target.
 In the luxury sector, the retail experience is truly a relationship business. “We spend time
focusing on a few clients who have the potential to engage with us and build that
relationship, so that we ultimately drive customer lifetime value,” said Neiman Marcus CEO
Geoffroy van Raemdonck. Merchants cultivate the best brands and curate the best
collections to help customers find what’s best for them, so shoppers don’t have to navigate
endless aisles. The associates also get to know customers, providing them with tailored
advice they might not be able to get online. Along with installing cafés, bars and animated
installations, this is one way Neiman Marcus provides “retailtainment.”

New this year

A new stage offered Partner Perspective
sessions, with a mix of retailers and
solutions providers sharing insights into
future retail trends. On Jan. 15, following a
panel of senior retail leaders that shared
how they are incorporating more inclusive
products in their collections, a fashion
show showcased the latest designs,
developments and innovations in
adaptive fashion.
The Consumer Product Showcase at NRF
The Consumer Product Showcase, 2023: Retail's Big Show.
sponsored by Amazon, American Express,
Buy With Prime and SAP, provided a forum for small businesses, suppliers, entrepreneurs
and brands to feature their consumer-facing products to leading retailers. The majority
(84%) of products showcased were from minority-owned, women-owned, veteran-owned,
disability-owned or LGBTQ+-owned companies. Retailers were able to vote their favorite
product, with Mei-Lon and Toni Lee Jimenez of Chica Beauty awarded the grand prize of
$15,000; CordBrick founder Nick Barrett received the second-place prize of $10,000.

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