What Happened at Shoptalk:
Four Areas in the Retail Spotlight
Held at Mandalay Bay in Las Vegas, Shoptalk is known for balancing relevant content on the latest trends in retail with an abundance of tech vendors, formalized networking “meetups,” and plenty of time to reconnect with retail industry friends and colleagues.
Two members of Parker Avery’s leadership team, Amanda Astrologo and Randi Nolan attended Shoptalk 2023, and both led very different panel discussions; Amanda’s was focused on pricing and merchandising technologies, while Randi’s delved into how retailers are navigating brand purpose and incorporating it into their culture and operations.
Along with these two well-attended panels, Shoptalk hosted a myriad of other insightful discussions on the future of retail and the latest technological advancements. In this post, Amanda and Randi break down four key themes they witnessed at Shoptalk 2023.
1 | The Expanded Potential of Artificial Intelligence (AI)
Several discussions focused on the immense potential of artificial intelligence (AI) and how it is set to revolutionize the retail industry. Shoptalk 2023 showcased the many possible applications of AI, including enhancing customer service, optimizing supply chains, driving overall creativity, and providing more personalized customer experiences. One particularly exciting application is in the creative process, where generative AI can help deliver fresh ideas to consumers, beyond typical product attribution methods. While many attendees and speakers were bullish on AI and talked about bold opportunities outside of advanced forecasting and demand planning, there was a clear emphasis on the importance of implementing AI responsibly and not chasing it too quickly.
2 | Unified Customer Experiences Go Deeper
Another key theme was the criticality of delivering a seamless and frictionless consumer experience, or a “unified” experience. Many brands, like Brilliant Earth and Tapestry, have already started to leverage this idea to enhance the role of their store associates as stylists and influencers, providing a seamless experience for customers from start to finish. Shoptalk 2023 attendees and panelists agreed that a frictionless experiences must be brand-appropriate, and some customers want more interaction or engagement than pure digital can deliver. How a retailer delivers the unified customer experience will vary depending on the brand value proposition, retail segment, competitive landscape, and potentially even geography. It is important for retailers to focus on consistency in the business process design, associate training, brand messaging, and of course execution as they hone in on their unified customer experience strategies.
3 | Technology’s Role in Driving Efficiencies—and Strategy
The third theme of Shoptalk 2023 was the role of enabling technology in driving efficiency. While this may seem like boilerplate to many, retailers need to deeply understand the drivers behind investing in new tech. Many discussions at Shoptalk 2023 highlighted that it is essential to be very clear on technology objectives upfront. This means clarity on the business requirements, aligning stakeholders on the expected benefits, and understanding the time horizon and payback period. Technology can drive efficiency, but it is important to ensure that any new technology under consideration aligns with the overall strategy and goals of the business. Additionally, there is a growing market for technology that can handle retail sustainability attributes and measurements. The inclusion of sustainability considerations will drive efficiencies in reporting as legislation increasingly requires retailers to provide information and transparency about their supply chain.
4 | Empowering the Front-Line Teams
The final theme we saw at Shoptalk 2023 was the importance of people and organization in delivering a great customer experience. Many discussions we attended during the event emphasized the need to arm front-line workers with all the information and training they need to be effective and to ensure that the consumer is at the center of every decision and action. Because traditional retail store organizational structures can sometimes hinder that objective, it is essential for retailers to think about how to structure teams and departments—including roles and responsibilities—to deliver an omnichannel experience that puts the customer first. In our experience, this often means rethinking and revising roles and making tough decisions to really move the needle on how stores operate to deliver on the brand’s customer experience promise. It also necessitates a deliberate and tailored approach to organizational change management so the people whose roles will be impacted will embrace and sustain new ways of working together.
One of our favorite industry events, Shoptalk 2023 was a fantastic experience. The themes of AI, a unified customer experience, enabling technology, and people and organization are critical considerations for retailers looking to stay competitive and deliver on their brand value propositions. The conference emphasized the need to implement these themes responsibly and thoughtfully, ensuring that they align with the overall strategy and goals of the business. With the right blend of technology, process considerations, and organizational structure, retailers can deliver truly exceptional customer experiences and thrive in an increasingly competitive retail landscape.
Contributor
The Parker Avery Group is a leading retail and consumer goods consulting firm that transforms organizations and optimizes operational execution through development of competitive strategies, business process design, deep analytics expertise, change management leadership, and implementation of solutions that enable key capabilities.
