Hot topics and talking points from NRF 2020
By Lizzie Willett, Principal Consultant, BJSS
I always leave NRF with fresh insights on how retailers are navigating their businesses through the changing retail landscape, and love experiencing first hand the innovations which are disrupting the sector.
Process automation was a hot topic at NRF this year and reflected some of the key retail findings from BJSS’ latest customer engagement report. We’ve moved away from 2019’s robot hype and are starting to see the real value of integrating artificial intelligence into retail operations for both brands and customers.
For example, Boxed, a wholesale service that delivers goods to the buyer’s door, uses AI and machine learning to predict when the customer will run out of certain products or what they will likely purchase in their next order. This improves efficiency for the company as it knows what stocks to replenish, as well as benefitting the customer by saving them time and effort.
Another major talking point was the wider store experience. While British Land boss has warned that a fifth of shops could vanish, some retailers recognise the power of the physical store as a highly effective consumer touchpoint. It’s about reimagining the role of the store, way beyond its four walls.
“The most successful retailers are those embracing technology that truly compliments both the in-store and online customer experience, delivering commercial effectiveness and cost reduction”
Retailers must go beyond simply selling a product and consider the best strategy to build an authentic connection with their customer. Part of this comes down to creating an experience that meets shoppers’ expectations for convenience through speed and ease.
A good example is apparel retailer Ruti, which is embracing AI facial recognition to drive a seamless shopping experience. The technology allows customers who have consented to curate and tailor their preferences each time they visit a store.
However, there must also be a foundation of trust shared between the seller and the buyer. With a wealth of data at their fingertips, brands are using social platforms to understand what consumers want so they can provide the most relevant recommendations and in turn build those invaluable emotional connections with consumers.
But it’s not an exact science. The data-driven capabilities of social platforms and hyper-targeted ads must be applied carefully or retailers risk coming across as intrusive, even verging on creepy.
Overall, it is clear from this year’s NRF, the most successful retailers are those embracing technology that truly compliments both the in-store and online customer experience, delivering commercial effectiveness and cost reduction.
However, NRF’s innovation stage is a good example of the confusion many retailers still face: row after row of exciting and tantalising new tech, but how to choose which technology will truly deliver results at scale will be a key focus area for 2021.
