2017 Deloitte NRF Retail Study Tour14 –17 January 2017, New York City

Deloitte Retail Study Tour 2017 | Wrap up

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Foreword 3

Introduction 4

NRF – Retail’s Big Show 4

Sunday 15 January 2017 5

Monday 16 January 2017 6

Monday 16 and Tuesday 17 January 2017 6

Tuesday 17 January 2017 7

Wrap up 7

Contacts 8

Our partners 8

Contents

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Foreword

Undoubtedly the NRF 2017 provided a huge amount of insight into new technologies, changing retail trends and an array of opportunities to meet and network with peers and colleagues. What an event! The Deloitte Study Tour sought to provide local delegates attending from Australia the opportunity to curate their experience of the NRF with:

• A structured guide through the labyrinth of new technologies on offer at the Exhibition, picking out some of the highlights and most relevant emerging technologies

• Access to Deloitte’s global activities and events which showcased some of the emerging global trends

• Retail store safaris, showcasing some of the best physical store offerings New York has to offer

• The opportunity to network and share experiences with like-minded retailers and service providers looking to take their organisations to the next level.

What was abundantly clear is that the retail landscape continues to evolve and change at an unprecedented rate, and that staying abreast of new technologies is now not an option – its business as usual. Digital is no longer the solely the domain of the online retailer – more and more it’s being embedded in bricks and mortar retailing to provide a consistent check point with the customer and an experience that will ensure the store remains as relevant as ever to today’s shopper.

There were so many takeaways from the NRF that’s it’s hard to narrow it down, but the five key themes emerging from the NRF from my perspective were:

• Digital technology for the physical: Embracing new technologies is critical for bricks and mortar stores to stay relevant – novelty in-store technologies are now finally becoming practical technologies

• Rise of the virtual and augmented reality: These technologies proliferated a multitude of stands at the NRF. Some great ideas and we are starting to see some practical applications – but there is still more work needed before these become widespread.

• Data analytics – but not as we know it: Data was everywhere to be seen, with an array of companies offering the ability to provide deeper and more insightful insights. The power of data is unquestionable and we are starting to see much better and accessible data analysis and insights. Customer insights are by far the most developed area of analytics available but this is the tip of the iceberg. Where to focus your efforts on data analytics is key and will vary from organisation to organisation.

• Personalisation: Data and new technologies are critical in being able to meet consumers’ demands for ever increasing personalisation throughout the customer journey. The ability to personalise marketing, products, delivery and experiences needs to be at the forefront of retailers’ investment strategies.

• Changing workforce: the role of the sales assistant is rapidly evolving, and their skill sets and experiences require significant overhaul to remain relevant. New learning techniques and in-store technologies are allowing the role of the in-store assistant to evolve with the changing needs of the consumer and creating a different type of retail workforce.

From a personal perspective, the Study Tour was extremely valuable not only for the opportunity to learn more about the new trends and technologies, but also because it allowed me the opportunity to meet all the delegates participating on the Tour, and interact with them on a more personal level. We got to know one another through the shared experience. I’d also like to personally thank all of our sponsors and support partners for taking the journey with us and making this possible. But this is only the beginning.

Now that the dust has settled, we want to reflect and remind ourselves of the key themes and learnings from the NRF, as well as re-connect with friends and colleagues from the Tour. We are therefore running a NRF debrief event in Sydney and Melbourne at the end of April where we will be presenting more insights and reflections from the NRF 2017 and providing the opportunity to re-connect on a more personal level over cocktails and canapés. Please do make every effort to attend – it will be great to see you again.

With so many learnings from this year’s inaugural Tour, we will again be conducting the Deloitte Study Tour in 2018 and really hope you will join us. Further details will be provided to you shortly.

In the meantime please feel free to reach out to me at any time.

Regards,David WhiteDeloitte Retail Leader

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Deloitte has been a member of the National Retail Federation (NRF) since 1969 and sponsor of its biggest annual conference – ‘Retail’s BIG Show’ for more than 25 years. As a platinum event sponsor, Deloitte is on stage with chief executives from some of the world’s leading retailers, drawing an audience of over 5,000 to the keynote hall.

Introduction

On a broader note, the NRF 2017 is a significant event with an overwhelming presence in terms of the presentations, sessions and exhibitors available to delegates. In order to recap on a busy 4 days, below is an overview of some of the experience.

Watch Retail's BIG Show 2017 Recap video

NRF – Retail’s Big Show

Conference highlights from the keynote stage

Top retail executives – HSN's Bill Brand, Walmart's Greg Foran, Terry Lundgren of Macy's and James Rhee of Ashley Stewart – discussed the importance of attracting and retaining top retail talent in the opening keynote session.

Executives from GameStop, The Vitamin Shoppe presented on how they are using data to revise their business models (Co-presented by Deloitte – Rod Sides, Wholesale and Distribution Leader, Deloitte LLP).

A panel discussed authenticity and the impact brand influencers can have on social media.

A panel of entrepreneurs agreed that regardless of what you are selling – cocktail mixers or artisanal candy – passion and a focus on the customer are critical to success.

Kip Tindell, Chairman of NRF, held a fireside chat with Richard Branson, Founder of Virgin Group, to gain his insights in how to drive undying brand engagement in an age of continuous disruption and reinvention.

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Sunday 15 January 2017

Deloitte keynote session: From data to delight, an insight-driven revolution of the in-store experience

The National Retail Federation calls it ‘Retail’s BIG Show’ for a reason. Drawing more than 33,000 participants, this year’s show is bigger than ever, and Deloitte was front and centre on Day 1 with an opening keynote presentation From data to delight: an insight-driven revolution of the in-store experience to an audience of over 5,000 that explored a topic that is top of mind for many retailers.

Rod Sides, US Retail, Wholesale and Distribution practice leader, presented Deloitte’s newest research and introduced clients Mike Mauler, President of GameStop International, and Colin Watts, Chief Executive Officer and Chief Health Enthusiast for Vitamin Shoppe.

GameStop shared the significance of data gleaned through its loyalty program in developing the concepts for all-new in-store experiences, as well as new sub-brands and store types. Vitamin Shoppe unveiled, for the first time to the public, its new store format, which will draw health-minded consumers in for unique ‘wellness lifestyle’ experiences that complement its products.

Watch the video here.

IBM Retail Safari

Our sponsorship partner took the opportunity to organise an interesting and thought provoking tour which gave participants the chance to see some great examples of innovation in store design and experiences.

• Of particular interest was the Samsung flagship store in the Meatpacking District. Read Samsung’s new flagship NYC building isn’t a retail store at all.

• One of the stand-out stores visited was STORY. Set in a 2000 sq foot store located in Manhattan’s 10th Ave retail corridor, STORY is a retail concept that takes the point of view of a magazine, changes like a gallery and sells things like a store. That means every four to eight weeks, STORY completely reinvents itself – from the design to the merchandise – with the goal of bringing to light a new theme, trend or issue. Products and are limited to each theme, so there also incentives customers to buy while they can. Prices can vary from $1 to $500, so there’s something for everyone. Each ‘story’ has different products, but with much of the inventory on consignment they are able to manage obsolescence risk. A great concept and shopping experience which I’m sure we’ll see expand rapidly. Definitely worth checking out while you are in New York.

Samsung NYC flagship store

STORY

Automated robot ‘Chloe’

Eataly

• We also met Chloe an automated robot that picks and packs products according to customers desire and instructions – Read Best Buy tests robot at New York store.

• We ended at Eataly a food retail experience that combines deli style shopping and Italian eating experiences.

AOPEN/Deloitte networking event

Tour delegates had the opportunity to network over the course of two events. Two stellar venues in the form Tipplers and Buddakan played host to our tour delegates.

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Monday 16 January 2017

Spotlight session: Economics and the global consumer

On Monday afternoon, Dr. Ira Kalish, Chief Global Economist, took the stage to shine a spotlight on Economics and the global consumer. In front of a standing room only crowd, he provided a global economic outlook – forecasting which trends like globalization, deflation and commodity prices will impact retail growth and disruption over the next 12 months. He also shared insights from Deloitte’s 20th annual Global Powers of Retailing report. The report focuses on the theme of ‘The art and science of customers,’ and considers the impact that living in the customer-driven economy is having on the shopping experience and retail industry business strategies. The annual report identifies the 250 largest retailers around the world based on publicly

Client networking reception at Macy’s

As has become tradition, Deloitte wrapped the day with its premier client networking event – a reception for 250 at Stella 34 Trattoria in Macy’s flagship department store, Herald Square. The room glowed with the power of the green dot as leaders from all functions and all corners of the globe engaged in a lively evening, filled with good food and conversation. This year many more global retailers networked with their industry peers from different geographies in an event curated by Deloitte global.

Retail Global – NRF Retail Study Tour Meet-up

Women in business – panel topic: ‘Women in business: equal or still a dream?’

• David White – Deloitte – MC

• Kelly Stickel – Remodista

• Chau Banks – New York and Company

• Sandy Saccullo – One Clique

• Marcella Larsen – Microsoft.

A moderated panel session with each of the panellists sharing their experience of their personal journey’s through the corporate and entrepreneurial world.

available data for FY2015 (fiscal years ended through June 2016), and analyses their performance across geographies, sectors, and channels. It also provides a look at the world’s 50 biggest e-retailers and the 50 fastest-growing retailers.

Monday 16 and Tuesday 17 January 2017Floor Tours of NRF Expo Hall

Based on positive reviews from previous years, Deloitte led clients on curated floor tours of NRF’s vast exhibition hall. Covering 240,000 square feet and showcasing 510 vendors, the EXPO Hall can be overwhelming. Deloitte made the experience more intimate for clients by curating a walk through the floor that brought to life just how our opening keynote topic ‘from data to delight’ is taking shape in the industry. Vendors featured on the tour included Aerohive Networks, Stibo Systems, First Insight and Sky I.T. Group. Many tours also dropped by the Impinj booth.

The US teams hosted tours for over 40 clients, including member of the C-suite from Kohl’s, TJX, USPS and Walmart.

The global teams hosted more than 50 clients from 13 countries, including Ahold Delhaize, Marks & Spencer, Selfridges and TJX Global. In addition there were specific tours for our Australian and Canadian clients, as well as a Spanish-speaking tour for our Spanish and South American clients.

Watch the quick floor tour video.

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Tuesday 17 January 2017

Retail Disrupted Master Class

Deloitte held a highly innovative session focused on disruption in retail and the power of exponential technologies to respond. We had expert speakers on artificial intelligence, crowd-sourcing and Deloitte’s alliance with Apple. See attached.

Networking at Landmarc – Deloitte and Microsoft

The final evening allowed our tour delegates to connect and network across the Australian delegation attending both the Deloitte and Microsoft study tours.

70 attendees | 45 clients | 25 Deloitte practitioners | at Deloitte’s 30 Rock office

Wrap upFor a full view of all the presentations, articles, videos and podcasts, please follow the links below to the recap section of the NRF’s website. Anything that is not covered in the above is likely to be found here.

NRF Recap from the NRF website:

Articles

Videos

Presentations

Podcasts

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Contacts

Our partners

Platinum sponsors

Support partners

Gold sponsors

For further information or if you have any questions please reach out to:

David WhiteDeloitte Retail Sector LeaderT: +61 2 9322 5228 E: davidwhite@deloitte.com.au

Tom CompernolleSenior Retail Client Service AdvisorT: +61 3 9671 6575E: thcompernolle@deloitte.com.au

Lesley CarstensConsumer and Industrial Products Marketing LeadT: +61 3 9671 5302E: lcarstens@deloitte.com.au

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