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Top 5 Retail Innovation Lessons from NRF 2022
Strong tailwinds from a positive retail holiday season opened this year's Big Show. In the November-December shopping season, USA retail sales grew 14.1%, "easily beating the National Retail Federation’s forecast and setting a new record despite challenges from inflation, supply chain disruptions and the ongoing pandemic."
Pointing to the continued resiliency of retail, I was pleasantly surprised by the number of attendees in the opening session of NRF 2022.
As Brian Cornell, Chairman & CEO of Target, resiliently said during his opening, customers “came out to shop. They were out physically shopping in our stores. They returned to shopping malls. They were engaged. They wanted to be out there enjoying what retail can provide. It gives me incredible optimism for the future…We feel more optimistic than we probably did six months ago about where we are, but we’re still living with COVID.”
Trendspotting has become a favorite activity of every NRF Big Show. This year a total of eleven innovation trends were identified, but for this article let me focus on my favorite five.
1. Artificial Intelligence is Here to Stay
AI was everywhere, mentioned in both presentations and also integrated into many technology solutions. As I recently summarized for a publication in my predictions for 2022, if you have AI only in your future roadmap, you are already behind.
Jim Roddy from RSPA summarized it best, "the top technology discussed at the show was AI (artificial intelligence) – in a landslide. The applications varied, but software, analytics, and insights based on AI were on the tip of nearly every vendor’s tongue."
2. Those Cameras Have Big Data Eyes
In 2021, we crossed 1 billion video cameras being installed around the world. The evolution of cameras into AI driven computer vision was prevalent at NRF 2022. From applications in retail stores such as Everseen solution shown above to distribution centers where 3D cameras identify products, those camera big eyes are everywhere.
Brightpick.AI has a picking solution suitable for Nano & Micro-fulfillment as well as Central Fulfillment Centers which are increasing in importance because of the pandemic.
3. Those Robots Just Keep on Coming
In addition to above example, multiple other robotic applications were on display at NRF 2022. From taking inventory using multiple RFID readers, to automating your warehouse, smart parcel pickup lockers, to delivering your goods to a home or business near you, more robots are coming.
The example on the right is from the award-winning startup Ottonomy.io.
4. Retailers at the Center of Startup Innovation
Multiple great examples reaffirming that retailers are directly engaging with startup to differentiate their business models were present at NRF. Gatik had their autonomous truck at NRF demonstrating their partnership with Walmart.
Another example, again from Walmart in partnership with DroneUp, delivering on that last mile using drones.
Walmart is launching three full-time DroneUp airport “Hubs” for on-demand delivery operations. The first operation has already taken flight at a Walmart Neighborhood Market in Farmington, Arkansas.
5. The Store as an Integrated Digital Smart Canvas
A trend that I have directly discussed with retailers and that I was pleased to see demonstrated at NRF is smarter integration of platforms across business functions.
This is a space that will deliver substantial opportunities for increased retailer profitability. More importantly, it elevates the importance of the physical store as a digital canvas to optimize engagement with consumers. More on this in future articles.
Quality Time at NRF 2022
Bottom line, I was pleasantly surprised by the productivity of the NRF 2022 edition of the Big Show. As the above indicates, more effort was invested in the innovation and startup zones.
Multiple other trends including the continued growth of DTC, the growing presence of Amazon Go, stores that come to your house or business, China's retail evolution, virtual try-on solutions, and more sensors including LIDAR coming to a store near you, for now did not make this summary edition.
Another prediction that I made for 2022 is that we will learn how to live with COVID-19 and it will transition from pandemic to endemic. Thank you retailers for your valuable time and the reminder that it's time to get busy living, take measured precautions, and stop worrying about dying. I fully agree with Target's CEO and I feel more optimistic than six months ago about where we are and where retail takes us next.
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Tony D'Onofrio is CEO of Prosegur's Global Retail Business Unit and CEO of the advisory group TD Insights. Globally he is recognized as a social media influencer in retail, security, and emerging technologies. He is listed as a top 100 Global Retail Influencer 2021 and publishes regularly on multiple global platforms including LP Magazine. His career has included executive roles in both security and information technologies companies. He is a graduate of Case Western Reserve University (BA) and Cleveland State University (MBA). His industry thought leadership activities are summarized at tonydonofrio.com.