A Recap of NRF '25: Retail's Big ShowA Recap of NRF '25: Retail's Big Show

More than 40,000 attendees from all over the world met at New York City's Javits Center for National Retail Federation's NRF '25: Retail's Big Show, held from Jan. 12-14, for three days of learning the latest in industry trends, tech innovations, supply chain challenges and forecasts for the year ahead with more than 1,000 exhibitors and more than 100 exhibitor sessions. NRF covered many topics, but three were the most prominent throughout the event.  

The Mechanics of AI  

NRF '25 kicked off with a keynote with John Furner, president and chief executive officer, Walmart U.S. and Azita Martin, vice president and general manager, retail and CPG, NVIDIA, discussing how recent AI advancements, like AI-powered digital assistants and how AI in the supply chain could transform shopping experiences online and in stores.  

Martin spoke about the company's functions like Mega, an Omniverse Blueprint for developing, testing and optimizing physical AI and robot fleets at scale in a digital twin before deployment into real-world facilities and Nemotron, a group of models that have both language skills and perception, helping developers create and deploy AI agents across a range of applications. 

"It's to the physical world what ChatGPT is to text and language," says Martin. "AI makes sure the right product gets to the right customer at the right time," says Martin. 

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AI is also helping with the customer experience at retail, as Deb Hall Lefevre, executive vice president and chief technology officer, Starbucks and Jason Gowans, senior vice president and chief technology officer, Levi Strauss & Co., discussed during day 1 of Retail's Big Show.  

Lefevre spoke about how digital advances have helped Starbucks baristas better serve customers by making its tech as simple as possible.  

"When you have 40,000 sites around the world, making sure the technology works is very important," says Lefevre.  

For Gowans, technology helps the apparel brand home in on size and fit. It enhances the in-store shopping experience with its Back Pocket technology that can look up a customer's size and style preference, inspect inventory for availability and then recommend a style.  

The customer experience is also essential to Disney Consumer Products. Lisa Baldziki, senior vice president, parks product development and retail, Disney Consumer Products, explained how data has helped personalize its retail experiences and products. Examples included guests appearing as action figures in the "TRON Lightcycle/Run" ride, creating personalized headbands that mix Disney IP and making adaptive costumes.  

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Customer Connection 

Technology lead to retail innovations during day 2 of Retail's Big Show. The common thread between execs from IKEA, Kraft Heinz, New Balance and Favorite Daughter, is about how filling a need in the market helped their brands grow. Two examples of this strategy were address during the day's keynotes.  

Tracee Ellis Ross, actor, producer, chief executive officer and founder, Pattern Beauty, began her business journey 10 years ago when she was looking for a beauty product line for curly and textured hair. Since Pattern Beauty's launch in 2019, it now includes an extended product line and fashion tools for hair. For Ellis Ross, innovation wasn't (and shouldn't) be complicated.  

"Pattern Beauty was dispelling a myth that black hair care is a niche market," says Ellis Ross. "About 65 to 75% of the global market has textured hair. " 

Tommy Hilfiger, fashion designer, who was the recipient of The Visionary award at the NRF Foundation Honors held on Feb. 12, spoke about opening his first store in upstate New York with the hopes of attracting customers who were interested in music and fashion, which led him to work with musicians in the rock 'n' roll and hip-hop worlds.  

"We wanted to embrace everyone in the lifestyle," says Hilfiger.   

Lifestyle is predominant on social media, and where many shoppers are discovering products, particularly Gen Z. Rare Beauty, the cosmetic company founded by celebrity, Selena Gomez, in 2020, began engaging with its customers via Zoom, or "Rare Chats," which was an opportunity for the brand to connect with shoppers during the pandemic. Rare Beauty has not only struck a chord with Gen Z shoppers for its liquid blush but has seen a rise in online sales, particularly on the TikTop Shop, where live shopping is at its apex (even as the platform's ban looms in the U.S.).

 "What's interesting about TikTok Shop is how demonstrable it is," says Katie Welch, chief marketing officer, Rare Beauty. "You have to have a product to show how it works."  

The power of TikTok is also beneficial to makeup retailer, Sephora. The store has seen a rise in popularity among Gen Z and Gen Alpha shoppers discovering beauty and skincare products. 

"What Sephora did for makeup is what TikTok is doing for skincare," says Artemis Patrick, president and chief executive officer, Sephora U.S. 

The Future is Now  

Retail’s Big Show addressed the intricacies of AI and the customer experience, but on the final day, there was a focus on what lies ahead for the future of retail. In the U.S., President Donald Trump's upcoming inauguration and the potential impact on taxes and tariffs. In Nov., the NRF issued a study indicating that President-elect Donald Trump's tariff proposals could cost Americans $78 billion in annual spending power. The impending shift was a topic in the opening keynote of day 3 with David Soloman, chairman and chief executive officer, Goldman Sachs.  

"You have this cocktail of change," says Soloman. "What we have to watch is how it's balanced." 

Change may be constant, but not all retailers are jumping on board with AI. During the second keynote on day 3, Dylan Lauren, chief executive officer, Dylan's Candy Bar, a pioneer of the retail-tainment space when it opened its first curated candy shop in New York City in 2001, expressed resistance to the use of AI on a retail show floor (but is open to using it elsewhere).  

"I want to be authentic to the brand experience," says Lauren. "It's not just about candy; it's about being together."  

Lauren's co-keynote speaker, Alex Rodriguez, former athlete and chief executive officer and chairman, A-Rod Corp., encouraged entrepreneurs to lean into the changes in retail through AI  – but don't forget about location.  

"The world of retail Is ever-changing," says Rodriguez. "When you're in retail, you're also in the real estate business."  

Retail’s Big Show pulled together a panel of execs from Pinterest, PwC and Happy Returns (a UPS company) to talk about upcoming trends culled from the holiday 2024 season and what it means for 2025.  

NRF saw consumers more engaged in celebrations and key events, particularly St. Patrick's Day and Mother's Day and the rise of Halloween and Easter as seasons. There was also an uptick in social shopping.  

"We saw people spending more than ever before, and people are spending on their phones," says Rachel Hardy, director, consumer products marketing, Pinterest. "We saw 1 billion searches for 'gift ideas' on Pinterest. Gen Z thinks in aesthetics. They come to Pinterest for the latest trends and how it's styled ... they have a heightened expectation of personalization. The future of search is evolving."  

Pacsun was ahead of the curve with social shopping in 2018. Two years later, the retailer launched a TikTok platform and gained 2 million followers by livestreaming product drops and making customers ambassadors of the retailer. In 18 months, Pacsun sold more than 500,000 jeans via TikTok.  

"Social commerce is a huge part of the business," says Brie Olsen, chief executive officer, Pacsun.  

NRF plans to host more events this year in Grapevine, Texas; Singapore; Rancho Palos Verdes, Calif. and Paris.