NRF: 5 key trends from the Big Show in New York

No comments

If one key theme came out of the NRF Big Show this year, it is how quickly retail is changing. This is happening on a number of fronts and the following areas are just five of the trends highlighted at NRF 2014 that are credited with driving the rapid growth in retail innovation.

1. Digitisation of the Store

UK retailers are only too aware of flagging in-store sales following a lacklustre 0.4% rise in like for like sales over December last year. It’s no surprise that, according a BRC and KPMG survey, online sales rose by 19.2% compared to the same period last year. So retailers need to bring the innovation and personalisation from digital commerce into stores as consumers still value the tactile nature of the physical experience. A significant way this can be achieved is through a single platform to manage interactions and transactions - allowing all touch points with consumers to be drawn together. In fact, nearly 40% of retailers worldwide stated in a recent NRF study that they prefer a single platform over the heterogeneous technology environment that exists today.

2. More pure plays adding bricks and mortar

David Gilboa of online eyewear retailer Warby Parker spoke about how the company, started in 2010 and valued at $500m, has opened five successful bricks and mortar locations. Retailers like this have turned showrooming into a positive by creating flagship stores to extend the brand, create mini distribution centres and embed digital into the real world shopping experience.

3. Mobile everything

From promotional offers to loyalty and payment cards, your wallet or purse is being reconfigured as a phone. The trend amongst device manufacturers, app designers and innovative retailers is to empower shoppers to be able to use their phones and tablets to transact anywhere, anytime and in any way – it’s what they want. Lancôme recently highlighted at the Internet Retailing Conference 2013 in London its practices for infusing mobile into the buyer’s journey.

4. Big data and personalisation

There was no shortage of speakers and exhibitors seeking to leverage the fruits of the massive amount of data being generated by consumer transactions. The key is to use that big data to realise some big value. Personalisation delivered by finely tuning and optimising the shopping journey to a near one-to-one experience can achieve this.

5. Digital make or break

Morrisons issued a profit warning after Christmas and many observers made the point that they were the only major UK supermarket without an ecommerce offering. In some respects this is good news for Morrisons as there is opportunity for improvement, but they must move quickly if they are going to make up ground. The impression gained from NRF2014 was that retailers who are digitised this year will be in a position to flourish, but those who are dragging their heels may well get left behind.

So NRF 2014 proves that retailing continues to change at quite a pace and, if it was not obvious, those who show agility will be the ones who grow quickest.