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Introducing the NRF Big Show

The 2025 edition of the NRF Big Show took place last 12-15 January 2025. It was reportedly a record show, with an attendance of more than 40,000 visitors from 105 countries, 1,000 exhibitors and 500 journalists . Just like last year, the lines were long, and energy was palpable, even though one can wonder if traffic was evenly distributed over all days or if more action took place on day one, with the audience then disseminating in side events, meetings and visits during the following days.

The sense of energy was also echoed in the streets and stores of New York, with a clear message: the US market is back on track, confident and optimistic. NRF reported that US sales in December were up 2.19% month-on-month in December and +8.41% year-on-year, thanks to a well-performing Thanksgiving.

The key outcomes of the conferences and events were :

-    AI is now a tangible reality, with many exhibitors claiming to be part of the game (to the point of saturation). Many use cases are already in use in stores or within companies: Dick’s Sporting Goods uses an AI-powered pricing model to handle its markdown strategy across 11m SKUs. This re-orients the conversation: the story is not anymore about “AI or not AI” but “how to deal with investments, ROI and potential financial risks when implementing AI in operations?” as successful implementation requires substantial investment and a willingness to embrace trial and error. Somehow, this guides the implementation of new use cases towards simpler ones with more immediate ROI, which might explain the following:

• The omnipresence of computer vision in fraud detection as presented by Diebold Nixdorf, Zebra, and Microsoft,
• 3D assets for faster ad creation and “digital twins” for warehouse management, as touted by NVIDIA in the opening keynote, with Lowe’s creating a digital twin of its 1,700 stores to simulate various layouts and optimise merchandising.
• Going further than “simple” AI, Agentic AI was the big buzzword, with Microsoft presenting an agent that indicates the SKUs to move from warehouse to stores according to real-time sales. Google, NVIDIA, Salesforce, and SAP all announced similar new launch announcements.

-    Unified commerce: Customers are increasingly hungry for seamless personalisation across all channels through digital tools and platforms, interpreted by many as “physical retail has a future, provided it reinvents its stores to acquire more data and becomes competitive with e-commerce”. H&M announced during the conference a testing campaign with RFID coupled with AI, allowing salespeople to localise products better and be assisted during the sale process. Many guest speakers insisted on the importance of in-store experience, with the prediction of seeing in 2026 the rise of “fantailing”, embodied by Taylor Swift: spending is increasingly driven by entertainment, events and cultural passions.

-    Gen Z and Alpha customers are an increasing reality that retailers need to consider (especially given that Gen Z is more eager to visit a physical store than a Millennial). This raises questions about their concerns, such as sustainability, its costs, what needs to be done, the regulatory environment, or how to remain time-proof and culturally relevant.

IADS Note: From a more general perspective, our take is that this edition displayed an AI-powered frenzy, with acres of exhibition space dedicated to suppliers often offering “magical” solutions to retailers. In our opinion, which is shared with some analysts, one of the issues retailers now face is to cut through the noise and be able to select the right AI solution in a jungle of options, many of which seemed to be “solutions looking for a problem”, simply forgetting that AI is a facilitator. Another significant issue is to ensure cybersecurity as AI implementations open up the range of available vulnerabilities. This is why the IADS has re-ignited its partnership with the Retail and Hospitality Information Sharing and Analysis Center (RH-ISAC).

What follows is a subjective selection of conferences, news and stores that we believe could be interesting for our members as we try to cut through the noise and self-promoting topics.

Heritage meets innovation: Digital growth strategies with Mattel and Reebok – Jamie Cygielman, Sr VP/GM, American Girl, Ivy Solari, VP digital commerce, Reebok.

American Girl's journey from its 1986 origins as a catalogue-based business sending out 500,000 mail orders to its current status as a digital-first retailer under the Mattel umbrella demonstrates the brand's adaptation to changing consumer behaviours. The company leverages its first-party data to understand customer buying patterns, collection preferences, and demographic information. Their rewards programme has become a key tool for building customer relationships through various initiatives, including e-certificates, exclusive events, and product launch priorities.

Reebok's transformation has been equally significant, though following a different path. Originally a wholesale-focused footwear and apparel manufacturer, the company has undergone substantial organisational changes. Following Adidas's divestiture, Reebok's intellectual property is now owned by Authentic Brands Group (ABG). U.S. operations were recently transferred to Galaxy Universal from Spark, which has merged with JCPenney to form Catalyst brands.

The physical retail strategy of both brands reveals distinct approaches to customer engagement. American Girl operates flagship stores in key locations like New York City and Chicago, alongside newer expressions in Los Angeles and Dallas. These stores exemplify the "retailtainment" concept, offering experiences beyond traditional shopping, including tea services, doll hair salons, and celebration spaces. The strategy has proved successful, with store visitors spending 25% more over their lifetime with the brand than non-store customers.

Reebok's retail presence has historically focused on outlet locations targeting value-driven consumers, but plans are underway to expand into full-price, experiential stores by 2025-2026. The brand maintains a strong wholesale presence across various channels, from big box stores like Costco to fashion-forward retailers like Urban Outfitters.

Digital engagement strategies have evolved significantly for both brands. American Girl's social media success relies heavily on video content across Instagram Reels and TikTok, structured around three pillars: cultural trends, nostalgia, and storytelling through dolls. The brand has found particular success with micro-influencers, perceived as more authentic than traditional high-follower influencers. Their YouTube strategy, primarily through YouTube Shorts, has effectively driven demand among younger audiences while maintaining traditional catalogue distribution for its proven effectiveness in driving child engagement.

Reebok's digital strategy emphasises partnerships and cultural relevance. The brand recently announced collaborations with athletes like Bryson DeChambeau and maintains relationships with basketball icons Shaquille O'Neal and Allen Iverson. The brand has successfully executed cross-industry collaborations, such as its Barbie-themed product line with Mattel, demonstrating its ability to leverage partnerships for broader market appeal.

Both companies are carefully balancing upper and lower-funnel marketing investments. American Girl maintains year-round brand campaigns while intensifying lower-funnel activities during the critical fourth-quarter holiday season. Reebok has recently increased upper-funnel investment with its new brand campaign while maintaining strategic lower-funnel activities during key selling periods.

Key takeaways:

1. Data-driven omnichannel integration is critical: Modern retail leadership requires seamless integration of digital and physical channels, powered by robust data analytics. American Girl's utilisation of first-party data from its house file and rewards program, combined with its experiential retail locations, has created a 25% lifetime value increase for store visitors. Data-informed omnichannel strategies can significantly enhance customer value and brand engagement.
2. Physical retail evolves beyond traditional commerce: To remain relevant, physical retail spaces must offer more than transaction opportunities. American Girl’s success with experiential elements like tea services, doll hair salons, and celebration spaces demonstrates that stores should function as brand experience centres. This is further reinforced by Reebok's strategic .pivot from purely outlet-focused locations to planned experiential stores.
3. Social media strategy requires authentic, platform-specific approaches. Both brands' experiences highlight the evolving nature of social media engagement in retail. The shift from high-follower influencers to micro-influencers demonstrates the growing importance of authentic content over reach. The success of video content across platforms like YouTube Shorts, Instagram Reels, and TikTok, combined with platform-specific content strategies, shows that retailers must develop nuanced, platform-appropriate content strategies rather than taking a one-size-fits-all approach to social media.

Game-changing: Culture’s influence on navigating volatility and fueling long-term growth – Brian Cornell, CEO, Target, Abubakarr Bangura, Group Vice President, Target, Michael Bush, CEO, Great Place To Work

Over the past 11 years, Target has added $35 billion in revenue, representing a 50% increase in size, while building 250 new stores and remodelling 1,200 locations. The company has expanded its workforce to over 400,000 team members, developed a $30 billion own-brand portfolio, and tripled its digital business. Cornell emphasised that these achievements weren't simply the result of boardroom decisions but were driven by investments in people and culture.

The company's culture, centred on “care, growth, and winning together”, has proven to be a powerful differentiator (even though Cornell admitted it was often easy to forget the “care” part of the motto). This is evidenced by metrics from Great Place to Work surveys, showing that 70% of Target employees consider it a great workplace and feel personally cared for. The company ranks third on the Best Workplaces in Retail list and leads among organisations with over 100,000 employees.

Abubakarr Bangura, a high-ranking Target executive, was invited on stage as a testimony of this policy. Bangura’s journey from Sierra Leone to leading 80 Target stores across five states in one of America's fastest-growing regions exemplifies the company's commitment to talent development. His region has experienced 14% population growth and attracted over $100 billion in new income across states like Texas, Florida, the Carolinas, Georgia, and Tennessee, serving as an innovation hub for the company's latest initiatives.

Target's approach to leadership development is particularly noteworthy. The company recently launched a six-month-long Store Director Development Programme, co-created with store directors, which has already shown remarkable results. Among the 1,000 participants (out of a total target of 2,000), 100% believe they can grow their careers with Target, and 92% report improved performance. The program's success stems from its collaborative design.

The discussion also addressed the issue of AI in retail. Target has implemented an AI chatbot called Stores Companion, which helps frontline teams with operations and customer experience. Rather than viewing AI as a threat, Target positions it as a growth enabler, similar to how e-commerce has created new opportunities. The company's unique model, where stores fulfil 95% of sales, demonstrates how technological integration can enhance rather than replace human roles.

Investment in employee education remains a priority, with Target's Dream2B program offering tuition-free education opportunities. Notably, 90% of programme participants are frontline workers, highlighting the company's commitment to developing talent at all levels.

These investments have yielded tangible results, with Bangura’s region seeing a 71% improvement in store director retention and a 63% reduction in executive team turnover over three years, leading to a 4-5 point improvement in guest experience scores.

For retail leaders navigating similar challenges, the discussion emphasised several key principles:

-    Listening to frontline teams,

-    Investing in talent development regardless of company size,

-    Maintaining human connection while embracing technological advancement.

Cornell stressed that success in retail's future will depend on effectively balancing technological innovation with meaningful human interaction.

Key Takeaways:

1. Culture of care is fundamental to success: Target's success demonstrates that prioritising a culture of care is not just about employee satisfaction but drives business performance. With 7 out of 10 employees saying they feel cared for as people (not just employees), and an 83% retention rate, Target's approach shows that investing in people yields tangible results. This is evidenced by their store director development programme, which achieved 100% of participants feeling they could grow their careers with Target, and 92% reporting improved performance.
2. Leadership development must be co-created and systematic: Target's approach to leadership development emphasises the importance of co-creation with frontline leaders and systematic implementation. Their six-month store director development programme, co-created with store directors, has been scaled to 2,000 leaders. This systematic approach to development has led to concrete results, including a 71% improvement in store director turnover rates and a 63% improvement in executive team turnover rates over three years, directly impacting operational performance and guest experience scores.
3. Technology integration requires a growth-focused culture. As retail faces AI and technological transformation, success depends on creating a growth-focused culture that helps employees embrace change rather than fear it. Target's approach includes:

• Implementing AI tools like their Store Companion chatbot while simultaneously investing in employee development,
• Offering programmes like Dream2Be (tuition-free education) with 90% participation from frontline workers,
• Maintaining a balance between technological advancement and human interaction, recognising that both will be crucial for retail's future.

Three brands, one growth strategy: The power of Macy’s, Inc.’s bold new chapter – Tony Spring, CEO, Macy’s Group, Olivier Bron, CEO, Bloomingdale’s, Maly Bernstein, CEO, Bluemercury

Macy's Inc. is implementing its "Bold New Chapter" strategy, a three-year transformation plan adressing fundamental retail challenges while positioning its portfolio brands for future growth. The strategy emerged from consumer research involving 60,000 customer interviews and focuses on enhancing retail fundamentals: merchandise assortment, service experience, marketing modernisation and supply chain efficiency.

According to Spring, early results are promising, with the company reporting positive indicators in its initial execution phase. Specifically, Macy's has seen three consecutive quarters of improvement in net promoter scores and comparable store sales growth in its first 50 focus stores, where enhanced merchandise assortment, improved visual presentation, and reinforced fitting room service have been implemented. The company also leverages advanced technologies, particularly in inventory operations, using algorithmic approaches to optimise fulfilment and reduce split shipments.

Blue Mercury has consistently performed in 15 consecutive quarters of comparable sales growth. The beauty retailer's success stems from its neighbourhood-focused approach and personalised beauty consultation model. CEO Maly Bernstein emphasised the company's strategy of creating custom beauty plans for customers, supported by enhanced staff education and training and a recent brand refresh that reinforces its position in luxury beauty for modern consumers.

Under new CEO Olivier Bron, IADS Member Bloomingdale's is executing its strategy of elevating the brand from aspirational to luxury positioning. Bron highlighted the unique customer mix and brand assortment that distinguishes Bloomingdale's, emphasising that its customers are often exclusive to the brand and not typically found in standalone luxury boutiques. In luxury, customers are not that interested in buying a product than an exciting and compelling story, which is why Bloomingdale’s focuses on experience and relationship to convey that story to them. As a consequence, Bron mentioned that a key area of investment was in the stores themselves, to be coherent with this strategy. Also, he noted that such a strategy was a good answer to the growing culture of “dupes” in the US.

Addressing the persistent question of department store relevance, Spring defended the format's viability, reframing it as a "physical marketplace" model offering unique merchandise curation and channel flexibility advantages. While remininding that the company was closing up to 150 stores, he emphasised that the portfolio approach, combining Macy's, Bloomingdale's, and Blue Mercury, provides significant operational synergies in warehousing, legal, finance, and brand negotiations (even though he acknowledged that these brands' value might not be fully reflected in Macy's share price).

Adressing integrating artificial intelligence in retail operations, all three brands leverage AI for personalisation, forecasting, and planning while maintaining a careful balance between technological advancement and human connection. Spring highlighted the ongoing tension between privacy and personalisation, emphasising the importance of responsible data usage in building customer trust.

Regarding the current retail environment and potential policy changes, Spring addressed concerns about tariffs and immigration policy impacts, noting that the company has experience navigating similar challenges from 2016 to 2017 through supply chain diversification and partner collaboration. The consequence of the upcoming regulatory shift on immigration remains a question mark.

The executives' assessment of the American consumer revealed an optimistic outlook, with customers characterised as both cautious and excited about retail's future. Bron emphasised consumers' desire for inspiration and exceptional experiences. At the same time, Spring noted the intersection of technology and humanity in current retail dynamics through establishing fair and mutually beneficial trading relationships with the rest of the world.

Key takeaways:

1. Transformation through consumer-centric strategies: Macy's Inc. is undergoing a significant transformation with its "Bold New Chapter" strategy, rooted in extensive consumer research. The company focuses on retail fundamentals such as enhancing merchandise assortment, improving service experience, modernising marketing efforts, and optimising supply chain efficiency. This consumer-centric approach is yielding positive early results, with increases in net promoter scores and store sales growth.
2. Leveraging brand synergies and AI: The portfolio of Macy's Inc., including Macy's, Bloomingdale's, and Blue Mercury, benefits from operational synergies that support backend efficiencies and brand negotiations while maintaining distinct brand identities. The use of AI across operations to enhance personalisation, forecasting, and planning exemplifies how technology can be integrated to augment both customer experience and operational efficiency, while still preserving the human element in retail.
3. Positioning for the future amidst external challenges: The leadership remains attentive to external economic and policy challenges, such as tariffs and immigration changes, which could impact operations. However, they are ready to adapt through strategic diversification and collaboration.

Lacing up for success: Transforming retail experiences and deepening customer relationships - Mary Dillon, CEO Foot Locker

Foot Locker celebrates its 50th anniversary by reimagining its approach to an evolving consumer while staying true to its heritage. Its strategic vision centres on becoming the premier destination for sneakers and discovery across its various banners, including Foot Locker Global, Kids Foot Locker, Champs Sporting Goods, and WSS.

The company's transformation is built on three fundamental principles:

• Enhancing customer satisfaction through the "Power Portfolio" initiative. A cornerstone of this effort is the new “Reimagined” store concept, with eight locations already operational worldwide, including a flagship store on 34th Street in New York City. These stores feature innovative elements such as the "Drop Zone" showcasing trending products, the "Kick It Club" for communal try-ons, and customisation stations. The basketball-focused "Home Court" section pays homage to the company's legacy while offering a multi-brand experience featuring Nike, Adidas, and Puma products. By the end of 2025, Foot Locker plans to have refreshed approximately two-thirds of its global fleet of 2,500+ stores. Regarding digital, the company launched a completely redesigned mobile app on major platforms, integrating seamlessly with its enhanced loyalty programme. This revamped loyalty system extends beyond providing access to product launches, incorporating broader rewards, perks such as free shipping and returns, and unique experiences like NBA game access.

• Leveraging the expertise of their "stripers" (store associates), thanks to a practical approach to in-store technology, including equipping them with handheld devices for improved inventory visibility and point-of-service access, as well as implementing virtual shoe sizing technology, especially in the kids' section. These technological enhancements enhance operational efficiency while allowing staff to focus on customer interaction.

• Fostering strategic growth partnerships with brands: a multi-year agreement with the NBA as an official marketing partner and a collaboration with the Chicago Bulls demonstrate Foot Locker's commitment to maintaining its leadership position in basketball culture. These partnerships manifest in various initiatives, including major activations during events like NBA All-Star Weekend.

Despite broader industry challenges, including a tough recent quarter, Foot Locker remains ahead of its transformation goals. Expanding into women's footwear has emerged as one of the company's fastest-growing segments. This expansion aligns with the company's goal of broadening sneaker culture and attracting new consumer segments while maintaining strong relationships with core customers.

Key Takeaways:

1. Reimagining the retail experience: Foot Locker's "Power Portfolio" initiative boldly redefines the in-store experience, emphasising innovation and customer engagement by focusing on creating a vibrant, experiential shopping environment that celebrates sneaker culture.
2. Digital transformation and integration: The redesign of Foot Locker's mobile app and the enhancement of the loyalty programme demonstrate a pivot towards digital integration. By linking the app with loyalty rewards and offering features like virtual shoe sizing, Foot Locker is enhancing the customer journey and ensuring that digital investments translate into tangible benefits.
3. Strengthening brand partnerships and cultural ties: Foot Locker's renewed focus on basketball, through partnerships with the NBA and the Chicago Bulls, underscores the strategic value of aligning with cultural icons and sports heritage. These partnerships reinforce Foot Locker's brand identity and solidify its leadership in sneaker culture.

Interesting stores:

Note: we will add the locations below to the New York City Guide.

Dyson SoHo, 155 Mercer St.

Banana Republic SoHo, 552 Broadway

Whole Foods Market Daily Shop, 1175 Third Avenue

Skims, 647 5th Avenue

A subjective selection of innovative startups - AI

The NRF Retail’s Big Show replaced this year the “Innovation Lab” exhibition space by the “Innovator Showcase”, a selection of 50 companies already in operation and with robust solutions (the Innovation Lab was more a showcase for POCs). Here is a selection of companies from this space:

Lili AI: a natural language tool that enriches product attributes on e-commerce platforms according to consumers’ searches and sends them to Google Ads or other recommendation tools. Revenue is said to grow +3 to +25% thanks to this solution, which is already used by Macy’s or Abercrombie & Fitch.

G2RL: a tool allowing to predict and recommend what to do with returned products, make the best economic decision and look for re-commerce opportunities.

Vanish Standard, a Japanese company allowing store employees to create content for their e-commerce websites. The platform measures customer engagement and employees are commissioned on sales made through this new tool. CLV is said to triple for customers interacting with these videos.

Curated for you: a tool that personalises product pages and content according to customers’ tastes and expectations.

Credits: IADS (Selvane Mohandas du Ménil)