At the start of every year, retail professionals gather in New York City to discuss the trends and innovation shaping the industry at the National Retail Federation’s Big Show. As the world’s largest trade association in retail, NRF is focused on a broad set of topics, anywhere from tearing down trade barriers increasing the cost of goods for US shoppers through promoting technology development.  

In years past, conversations at the NRF Big Show have been dominated by technology -- what’s new, what’s working and what’s not. IT discussions orbit around a few major keywords developed to describe the latest frontier of innovation in retail, such as “omnichannel” or “personalization”.

This bias towards IT and its impact on the industry is largely sourced by the 510 vendors in the EXPO Hall. Whether purveyors of hardware, software or IT services, these businesses are at NRF to join in the discussion while peddling their newest solutions, spanning everything from point of sale, merchandising systems, predictive intelligence and newer solutions like augmented reality, virtual reality, robotics and 3D printing.

But at this year’s conference, there was a shift. Whether the attendee retailer or solution provider, the conversation had to up-leveled to topics that were more strategic in nature. The buzz in the EXPO Hall and in the breakout session rooms were less about technology and more about the fundamentals of retail. Collectively, the industry agrees that the shopper is evolving at an unprecedented pace. And many retailers are struggling to keep up, evidenced by the growing domination of Amazon in share of wallet and the rampant shuttering of traditional store locations. As a result, retailers looked to understand the relationships between the shopper and the various market-facing constructs of the retail brand -- including content and employees.

The Shopper is in Control

Today’s shopper is redefining the way retailers do business. Whether Gen X, Millennial or Gen Z, this shopper lives in a digital-first world. According to Salesforce’s recent Connected Shoppers Report, 82% of shopping journeys begin online, and almost half of all product searches start on Amazon. But according to Salesforce’s Director of Industry Strategy and Insights, Rick Kenney, shoppers are also mobile-first and fluent in social, which impacted shopping patterns over the holiday season. Learn more about today’s evolving shopper now.

Content is King

In an interview with Salesforce on the show floor, Erwin Hinteregger, CMO at Aldo, stated that technology was only an enabler for the shopper experience. According to the retail marketing executive, if technology doesn’t add to the conversation between the shopper and the brand or the shopper and the retail employee, it’s useless.

As shoppers are bombarded with a deluge of offers from this brand and that brand, it becomes more difficult for a retailer to rise above the noise. This is why, in the world of retail, content relevance is key. During an Exhibitor Insights session with Aldo and Salesforce, Hinteregger went on to express why “smart is the new sexy” at Aldo. The brand opted to reduce the volume of email communications to its loyal base in favor of hyper-relevant communications based on shopper behavior data pulled from purchase history, website browse data and email activity. As the result of this reduction in email volume (to the tune of 40%), the brand was able to lift email revenues by 70%.

Employees are Pathways to Shoppers

Hinteregger also shared his ideas related to the value of stores -- and the value of a  store associate’s ability to connect with a shopper in the showroom floor. This sentiment was echoed across breakout sessions. However, the challenge associated with transforming a workforce into a competitive edge has proven difficult for most retailers. Even though retail is the largest private sector employer in the U.S., accounting for nearly one in every four jobs, the industry is suffering a shortage in talent. There are many reasons for this predicament, but one can look to the fundamental changes in the way shoppers shop as a driver of the issue. In the past, retailers hired their store associates to ring a sale and stock a shelf. Today, the expectations are much higher, but in many cases, the training programs and wages remain the same. The skills shortage is not just confined to store associates, who are asked to be product experts, brand ambassadors and retail operations mavens, but to digital, marketing, service and IT professionals at headquarters who are asked to operate in a world overcome with shopper data and a changing retail landscape.

NRF realizes the skills shortage is one of the most important challenges facing the industry today. In response, the trade association introduced Rise Up, a new program offering training and credentials to help job seekers develop meaningful careers in the industry. NRF is also seeking to build awareness of this critical issue by providing a forum for retail thought leaders from major brands such as Macy’s and Walmart to share how they are approaching the talent shortage and the skills gap, including technology, training programs and developing centers of excellence.

Retail Needs to Change to Thrive

If there is something retailers can count on in the years ahead, it’s that the industry and the shopper will continue to change. Consequently, retailers must continue to evolve or perish. Sr. Managing Director of Retail at Accenture and Rob Garf, VP of Industry Strategy and Insights at Salesforce, reviewed the shared characteristics across retail companies prepared to face the challenges the industry will face in the coming years.

Fortunately or unfortunately, these coming challenges can’t be addressed solely with the newest software solution. Retailers will need to develop a skilled employee base and implement a thoughtful and relevant content strategy to survive. Technology’s just an enabler.