The National Retail Federation (NRF) gave retailers, technology firms, and others within the industry a second day of panels on Monday, covering an important topics within the sector today. Day two of NRF’s Big Show included dozens of panels on marketing, technology, diversity and the state of the economy.
Digital Commerce 360 was on the ground on the Javits Center in Latest York City to follow these and other vital ecommerce topics, in addition to the retail leaders discussing them.
Here’s what you’ll want to know from NRF day two:
Magic Johnson began the day
Earvin “Magic” Johnson kicked off the day in conversation with Walmart U.S. CEO John Furner. Johnson is chairman and CEO of Magic Johnson Industries. He discussed the applications of lessons he learned as a star basketball player to his more moderen work as an entrepreneur.
Johnson referred to the date as Martin Luther King Jr. Day. He credited Dr. King’s work in paving the way in which for him to be at NRF today and on the helm of his business.
The rise of retail media networks
Retailers are in search of options as they seek to leverage resources for added revenue. Retail media networks have emerged as one such area of focus. Retail media networks at large will pursue some version of Amazon’s flywheel with media, advertisements and commerce, said Andrew Lipsman, principal analyst of retail and ecommerce at Insider Intelligence.
The best opportunity for retail media networks is in stores, he said. In-store attribution of sales to those ads is lacking, but that’s a spot retailers can improve.
“Physical retail is the brand new TV” for advertisers when it comes to scale, brand safety and reaching the proper audience, Lipsman said.
Walmart has a wider reach than the most important TV network, said Ryan Mayward, senior vice chairman of retail media sales at Walmart Connect. He explained that retailers are increasingly allocating their marketing budgets to in-store uses. Walmart is experimenting with recent ways to advertise in stores, including on TV screens within the electronics section, on screens within the deli and bakery sections, and on self-checkout screens.
Jonathan Lustig, head of revenue at Walgreens Promoting Group, echoed the purpose. With retail media networks, “every Walgreens store becomes a distribution center,” he said.
Walmart ranks No. 2 within the 2023 Digital Commerce 360 Top 1000. The Top 1000 is a rating of North America’s leading retailers by online sales. Walgreens ranks No. 19.
Expectations for 2024
The state of the economy in 2024 was a consistent topic of conversation, too. Jack Kleinhenz, chief economist on the NRF, described his opinion as “guarded optimism” on the economy this yr. While there is likely to be a shift down in growth from last yr, there won’t be negative growth in 2024, he expects. Nevertheless, a single negative quarter is feasible, in his view.
Economists and analysts present said they were optimistic about consumer spending and consumer sentiment. Consumers remained resilient within the face of what might have been significant headwinds last yr, said Brian Nagel, senior research analyst at Oppenheimer and Company. That resulted in a better-than-expected holiday season, he said. Kleinhenz also expects consumer spending through 2024 will proceed to be supported by job growth.
Nevertheless, retailers and analysts are keeping potential threats in mind. The economy is certainly not within the clear, Nagel said. Earlier within the day, Furner mentioned inflation, rates of interest, geopolitical strife, and crime as issues that keep retailers worrying.
Steve Liesman, CNBC senior economics reporter, told NRF attendees that the economy is almost definitely going to be okay and never face a recession within the near term. He believes the U.S. and global economies are still correcting post-COVID.
Here’s what you missed from NRF Day 1.
See the opposite NRF stories Digital Commerce 360 is following here.
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