2016 NRF Review

Something big just happened in the global retail world, and we got a front row seat to all the dialogue about where our industry is heading in this tech-happy world. 

The store design industry certainly knows when to pay attention to who is expanding and who is retreating, to direct our own strategy and insights. That’s why the National Retail Federation’s annual “Big” Show is an important way to begin each year. It’s also why you’ll see senior executives from retailers, design firms and suppliers walking the aisles amazed at the standing-room-only exhibits and listening in on up-and-coming brands – many of which aren’t yet well known. Big money is being spent and it’s essential that we take notice of the event in this ever-shifting marketplace.

NRF hosted nearly 34,000 attendees at its “Big” Show this past January at New York’s Jacob K. Javitz Center. This annual gathering represents the largest culmination of c-suite and senior retail executives anywhere. The attendee profile is full of international voices representing single-store operations from Qatar to large chains in Chile, the U.S., France, and really anyplace you’ll find retail.

The show featured the industry’s leading solution providers demonstrating their most innovative technologies; the show also had a large conference track that included design industry leaders speaking about their firms’ latest case studies, forecasts and, yes, store design winners.

The talk and social media chatter throughout the event was all centered around “experiences.”  From signs posted in the stands heralding the term to many sessions using it as a rally cry, it seems everyone is finally recognizing design and User Experience (UX) matters. Yes, it’s a bit funny to us, as we’ve always been selling this message, but as we know, it takes the c-suite folks to pick up the mantra to get the budgets we all dream about. It’s why each year I make the effort to attend this show, wading through a lot of boring hardware to grab the terms the execs are using and incorporate them into my own strategy.

Astute design agencies know that being prepared for what’s coming and knowing the latest “speak” moves them closer to brands seeking innovation. The show covered more than 228,000 square feet, so here are some highlights on new tech coming our way:

• Nordstrom 3-D Digital Foot Measurement:  Nordstrom is using a foot-scanning solution to enable sales staff to make precise shoe size recommendations to align inventory that best matches the customer’s profile. Trend: Look for more tech-enhanced fixtures to be part of the mix.
   
• Capgemini Interactive 3-D modeling: By utilizing this supplier’s camera, a sales associate can use physical objects to create 3-D models of rooms to show customers layout options. The room models could be customized with style, color and design details that could be the foundation of a virtual reality (VR) experience. Trend: Customers look more toward total design solutions, so some formats will need to allow for these sort of experience areas to be part of space planning.
   
• Co-op Supermarket of the Future: This futuristic market recreated the atmosphere of local open markets while providing digital solutions that share information, interact with the shopper and utilize cloud-based tools to convey up-to-date information. Trend: Customers demand real-time, relevant information, especially when selecting foods. You’ll see more digital screens come to product zones versus checkout and endcaps.
   
• Levi Strauss & Co.: RFID was featured as a real-time inventory tracking system, coupled with a smart fitting room application, allowing customers to view their item on-screen. The screen’s user interface also allowed for direct contact with a sales associate and product recommendations, helping the merchant upsell at key moments. Trend: RFID is here in full force now that brands recognize how essential they are to the supply chain and inventory management. A bonus is the information-rich stories brands can tell by tying together visual communications with these systems. 

We also interviewed Brendan O’Meara, Microsoft’s managing director of worldwide retail and consumer goods. O’Meara was able to share Microsoft’s view on the “post-omnichannel world,” in which we moved into a “unified experience” full of rich digital information, similar to online. He stated that “mobile is the digital remote to the store.”

For us, this means mobile devices will surely interplay with our well-crafted store designs and visual merchandising presentations. This also means that ideation and concept phases will have a new “experience filter” in which to discuss the customer journey, which almost always now includes mobile activity used as they enter and explore our environments.

Brian Dyches is the Managing Director for Atmospheric Group & Digital Experience Lab, located in San Diego. Brian also writes VMSD's regular Next Store column, focusing on technology trends.