From the NRF Big Show to Fyllo: 3 top retail priorities for 2023 and beyond

Retail’s Big Show, the flagship expo of the National Retail Federation (NRF), returned to an in-person setting for its 113th edition this year with 35,000 retail professionals in attendance to get inspired for what's next.

One of the key takeaways from the show was that 'phygital' commerce is exploding. The merging of physical and digital shopping into one seamless experience isn’t a nice-to-have anymore, but a must-have for any retailer wishing to remain competitive in today’s highly-fragmented and constantly changing marketplace.

To everyone in attendance the value of weaving together digital and in-person experiences was self-evident. "Today more than ever, consumers are voting with their dollars for brands that matter,” said Mattel President and COO Richard Dickson in his keynote session. “It's all about knowing your customer, delivering exceptional products, and creating the experiences that drive community affinity."

There was no shortage of innovations and bright ideas at the event, but we found three themes that were particularly dominant this year — and they happen to be aligned with the work we’re doing at Fyllo.

3 top retail priorities for 2023 and beyond

The rise of retail media networks

Many analysts see retail media as the third wave of digital advertising, and perhaps the largest of them all. In a panel discussion with Nordstrom and Albertsons Media Collective, Andrew Lipsman,  principal analyst of retail and eCommerce at Insider Intelligence, pointed out that “it took search 14 years to go from $1 billion to $30 billion in digital ad spend, social 11 years, and retail media 5 years.”

But as big as retail media is getting on Amazon and other pure-play ecommerce retailers, it's the potential to reach audiences inside the store that has the industry abuzz. “I see this as one of the biggest mega-trends on the horizon,” Lipsman said.

In its own recap of the NRF Big Show, tech consultancy MJV Innovation reminds us that “the problem with traditional digital media spending in search engines and social media is that brands do not have access to data, and consequently do not know how their campaigns are performing.” With retail media, on the other hand, retailers can engage consumers with relevant messaging and offers and measure campaign effectiveness literally ten feet from the cash register, as Fyllo’s GM of Retail Solutions Sumant Yerramilly put it in a recent blog. That’s a real breakthrough, and one we’re excited to be a part of with our own in-store, screen-based retail media network, Fyllo Connect.

The digital upgrade of in-store experiences

One of the ways that retailers are bringing about the age of phygital commerce is by weaving digital experiences inside their brick-and-mortar locations.

Rodney McMullen, Kroger’s Chairman of the Board and CEO, pointed out in his keynote session that consumers don’t really make a distinction anymore between their online and in-store shopping experience. “They'll engage with us at the store, they'll get one-hour delivery, they'll use the app to put their shopping list together, they'll download their digital coupons to help stretch their budget.” The only question they ask themselves is “What's easy for me at that particular point in time? And we do everything we can to make it easy for them."

At the NRF Big Show, the trade floor was “booming with technology highlighting the best of store and digital solutions powering retail of all shapes and sizes," Amazon reported in its wrapup after the event. One of the most exciting developments in in-store tech this year comes in the form of large interactive screens where customers can learn about the products available at the store, take advantage of special offers and check out on their own. Interactive screens make shopping easy for all types of customers: from the experienced shopper who wants to be in and out of the store fast with their purchase in hand to the newcomer who needs more information and product recommendations.

The need for hyper-personalization

The vast majority of shoppers today — McKinsey puts the figure at 80% — want their retail experience to be personalized, and they’re willing to share relevant personal data to make it happen as long as the company is transparent about how it’s using that data.

At this year’s NRF Big Show, multiple sessions reiterated the importance of leveraging cutting-edge digital tools to provide a hyper-personalized shopping experience and create meaningful connections with consumers. “It’s no longer enough to offer products with a touch of digital sprinkled in,” MJV reported. “Consumers now want to touch, feel, play and be entertained by what’s on the table.” But game-changing customer experiences such as virtual beauty assistants, product recommendations and cashierless payments can't work without reliable personal data.

Some of the most successful retailers on the market are those with the best personalization strategies: companies like Sephora, Nordstrom, and Best Buy top the charts thanks to consistent and thoughtful dialogue with their customers to learn about their habits and preferences, and then use that information to deliver innovative, data-driven experiences. Many of them are using in-store interactive screens that feature product recommendation engines like those developed by Fyllo to engage their customers, take away the guesswork and help them discover products that are a perfect fit for their needs.

Big industry events like the NRF’s Big Show are essential for retailers to prepare for what’s next and remain competitive, but they can be overwhelming. With so much change on the horizon, retailers big and small need data and tech partners that can help them focus on what’s important.

Download our Retail CX guide for practical recommendations on how to take your in-store experience to the next level.