The much-anticipated NRF Big Show is over for another year. It was, as always, a whirlwind of inspiration and innovation. As the largest retail show in the world, there were more people in one place than I’ve seen for two years, but several last-minute show cancellations proved we’re not in the post-Covid era just yet.
Everyone wore masks, and we all had to sleep and shower wearing a green proof-of-vaccination bracelet, without which you couldn’t get in. Nonetheless the vibe was vibrant and optimistic. It was noticeable that the Brazilians were out in force – they’re surely the largest delegation from outside the US these days!
Sustainability, economic uncertainty and smart tech
Not surprisingly, industry leaders all emphasised their commitment to putting sustainability first. Inflation, the rising cost of living and the difficulties of recruiting and retaining talent were the other topics that bubbled up consistently in the presentations I saw, and the conversations I had.
We were reminded by Ralph Lauren’s CEO, Patrice Louvet, that retail accounts for 31% of global GDP. When it’s inefficient, as it must be if 20-25% of inventory typically gets significantly marked down, it damages the whole economy.
Elsewhere, smart-tech solutions to all retail challenges were on display in the tradeshow, while automated, last-mile logistics felt like a frothy hot topic, and is incidentally something we really expect to come to the fore during the next decade.
Understanding the metaverse
The metaverse made it into several talks for the first time to my knowledge, including mine, with examples of brands exploring Decentraland, Zepeto, Roblox and ADA all cropping up in multiple places.
Patrice Louvet reported that Ralph Lauren sold 100,000 units of digital fashion for avatars on Roblox in just a few weeks. He also revealed that, while he hasn’t yet taken the plunge into selling NFTs or buying real estate in Roblox or Decentraland, he is seriously considering both.
There was plenty of healthy debate at the conference about whether the metaverse will change retail forever, or whether it’s just a passing fad, and Louvet’s stance that “we don’t know yet what the metaverse means for us, but we’re learning and trialling” seems to be a wise and measured approach.
Anecdotally, one well-informed source told me his teenage kids had asked for NFTs as Christmas presents this year. Additionally, more than one person recommended the Hollywood film ‘Free Guy’: a new take on the ‘Ready Player One’ metaverse theme. This implies to me that the inner workings of the metaverse are certainly breaking into the mainstream and touching our lives in new ways.
GDR’s big picture view
As for my own keynote, I tried to paint the big picture as GDR sees it:
- We need to think of the physical store as the support system for omni-fulfilment,
- Non-traditional digital channels are taking over from ‘boring’ websites (if you’re GenZ or GenAlpha, who will be 50% of the world’s population by 2030, you’re leading this charge!),
- And the metaverse could be your best marketing and sales opportunity ever.
If you’re interested in hiring me to present a bespoke version of this NRF 2022 retail trends keynote to your team, or you’d like GDR to run a consultancy project or workshop on one of the key themes, get in touch with GDR’s MD Rachel Wilkinson at rachel@gdruk.com