NRF ’25 – State of the Global Retail Nation
"If we got a dime every time we heard the letters AI, we’d have been at the inauguration sitting next to Zuck"
What is the NRF Big Show about, anyway?
Indeed, AI was the most discussed topic at this year's NRF conference, a three-day conference where the majority of attendees are from outside the U.S. Walking through the crowds feels like being in the lobby of the UN, with two-thirds of the 40,000 attendees hailing from Brazil, Scandinavia, and across Europe.
The prevailing belief is that here in the U.S., we know more, do more, and think more about retail's future faster and better than anywhere else in the world. While that may be true, many international attendees are encountering ideas that American retailers have already implemented. This positions U.S. attendees and speakers as sought-after experts at the conference. However, that doesn't mean that Americans have nothing to learn. The agenda is packed with important brand leaders discussing the how's and why's of their successful business (i.e. excellent lessons and advice for all retailers). NRF's Big Show is always worth attending.
If you do attend NRF, know that A) you're going to hear and learn from just about every retail CEO that's doing well and B) you're also going to make some foreign friends. In fact, the event might better be called "The International Retail Federation's Big Show." But we'll save that topic for another day.
Check out this a hype video for more context: https://www.youtube.com/watch?v=tQpzKwhoBLQ
NRF '25 and AI
Back to AI. Generative AI was spoken of as a key enabler that would ensure retail productivity gains, create new customer experiences, and be a 'force multiplier' across value chains. Yet, despite AI dominating the conversations, many attendees—Americans included—left with lingering questions. How should AI be used? When? Where? The potential is exciting, but clarity is still lacking.
One of the most thought-provoking comments, came from an NVIDIA VP who said, "Someone once asked me if AI was going to take my job. I said, 'No, but someone using it will.'" Kind of an uncomfortable statement, but probably true. Another comment we heard was from the CEO of LEGO, who, when asked if they'd use AI going forward said, "No. We're a human business." So again, although AI is a hot issue, we're still in a virtual (literally) no-man's land when it comes to its benefits for our own businesses and retail in general. Even though it's still early, it's a bit of a conundrum!
While AI remains a work in progress, it's clear that by NRF 2026, we'll all have a better understanding of its potential—or someone using it will.
NRF '25 and Gen Z, A and B
The consensus on this topic was that these generations will dominate the market sooner than later, and we'd better study, test, and act on their needs and shopping habits immediately. Much like AI, there's a general understanding that action is needed, but uncertainty remains. We know we must address them, but how, when and where?
Some brands, however, are already paving the way. Sephora, Target and of course, Amazon are currently showing us examples of how to merchandise and market to these generations. Sephora, for instance, drove over half of its Holiday sales through TikTok. Whether the platform sticks around or not, the influence of social commerce is undeniable. You get the feeling that a test on a similar platform is an immediate priority. Studying the "Sephora Way" on TikTok could provide valuable insights for retailers looking to engage with these younger audiences.
NRF '25 and Other Key Topics
- Omnichannel – Just when you thought you'd never hear that term again, it was thrust out a few times during this conference as a 'must have'. While U.S. retailers already know that, it's worth repeating as, make no mistake, it's the ONLY way to do business today.
- Employees – Yes, believe it or not, this is the REAL issue with modern retail (see our presentation below). Employees are the best purveyors of a good customer experience and cannot be replaced by AI, especially in stores, yet are constantly being overlooked. Several sessions focused on how AI can empower employees and improve their jobs, an overdue but welcome discussion.
- Store Design – A little like omnichannel, this many-times-overlooked topic was brought up in several sessions as a key factor in customer experience. Abercrombie, the re-surging GAP, and LEGO are great examples of how to use physical space to build a brand while creating an extraordinary customer experience. The better the store design, the better the overall experience. Remember, as we've said before, every store is a flagship store now.
WD Partners: How Speed Kills
Our packed session revolved around how retailers can improve their numbers and their traffic by ignoring the 'speed' game set by behemoth brands. Earlier, an Amazon executive said on stage that "With speed, when someone goes to order again, they'll remember that and use us" (i.e.; not you). But for retailers whose business is less than $100 billion annually, 'next', or 'same day' delivery is just not profitable.
Our research-backed recommendations are to embrace Slow Retail, a mantra that evolved successfully from the food business and centers around taking the time to amplify the quality of every customer experience versus speed. This would especially involve an improved associate group on the sales floor. The latter being described by consumers in research as a reason they'd prefer to shop online vs in store and thus a major factor in store closings.
Watch our session here: https://www.wdpartners.com/speakers/lee-peterson/
Should I Go?
The answer to us is "Absolutely". The opportunity to get a clear vision of where retail is headed, straight from the sources' mouths, is unmatched by other shows. Where else can you hear the CEOs from Target, Walmart, Starbucks, Levi's, Amazon (CEO of stores), Best Buy, LEGO, IKEA, New Balance and many more in one place? And on top of that, make friends with someone from Sao Paulo? It is the single best bellwether start to a year. Go!