Retail Opinion - John Ryan pays a visit to US trade shows CES and NRF

Retail’s still getting

physical not phygital

John Ryan heads to the US to discover what might be in store in retail’s future, and discovers that bricksand-mortar players have every reason to remain optimistic

At this time of year, you will invariably stumble across predictions about what the year ahead holds, and although I’m a little late to the forecaster’s party there is state. The worst is behind us and while we kept on getting hit, we’ve shown an uncanny ability to pick ourselves up and get on with it. All of which sounds pretty rosy when some justification to what follows, largely owing to the fact that I’m set against what we’ve been through, but there remains an recently back from both CES and NRF. elephant in the room: the economy.

‘What and what?’ you’re probably saying. Well, CES is the At the time of writing, the news was that inflation in the Consumer Electronics Show. It’s in Vegas (baby) and is the biggest UK had hit a 30-year high and is currently running at over of its kind in the world. NRF is the National Retail Federation and 5%. That sounds bad, and when coupled with the Bank of it’s a bit like CES, except that it’s solely for retail. Both took place in England raising interest rates, there will be less money all January and, for a glimpse of what’s to come, it was worth the trip. round over the next 12 months for the average man (or

So, what was new and what (in spite of the Covid-related woman) in the street. diminished numbers at both events) did the punters reckon to Practically, this means that discretionary spending - and what was on show? Well, if you’re in the business of selling toys in toys and playthings fall firmly into this category - may be hit. a store you might want to know which parts of your shop could be Except that as every consumer behaviour analyst will point considered hotspots and which are not. Customer out, spending on products that will bring a counting and monitoring is certainly one way of doing this, but is about as interesting as watching the proverbial paint dry. Unsurprisingly, there are now widgets that do “ If there was a single thing smile to the faces of our children is one of the last things that goes under the hammer. So, will 2022 be any good if you want to sell toys? The answer would appear to be a qualified the job for you. But what is surprising is that they that emerged yes. The tech merchants are certainly banking needn’t be the stuff of big outfits. Microelectronics from both on it being so, and maybe they’re in the know are relatively cheap, so knowing what’s happening is possible and worth the effort. Then there’s the matter shows, it was (although hope does always spring eternal in this neck of the woods). As far as shops are of ‘phygital’ which for some means looking in-store that physical concerned, if only a small fraction of what was and perhaps browsing online while you’re there. This can, of course, be done by phone. But in retail is worth on show at NRF and CES makes its way into the retail mainstream, then it’s reasonable to think these pandemic-darkened days, what truly fastidious designing new things will be better for shoppers. person would want to touch an in-store screen? You don’t have to. There are now screens that feature a things for, and And that in turn will feed through into sales, at the least, not going backwards. Oh camera that maps your hand to create an on-screen it’s to be yes, and if gaming is your thing, or you’re in avatar, which mirrors what your hand does, without expected that the business of selling add-ons to what you any requirement to actually touch anything. But then why bother going into a shop if all of this this state of currently show, look out for haptic suits. These are pieces of clothing that you wear while is the norm? Wouldn’t it be better to dive into the affairs will playing a video game, which react to what’s

‘metaverse’ and just become a virtual customer in a virtual store? Well, maybe, and there was a good continue for happening on the screen, allowing you to ‘feel’ the action. This was everywhere at CES and deal of talk about this at both CES and NRF. But the foreseeable was one of the most sought-after items. It’s a nothing was really landing, and there was rather more hope (on the part of the vendors) than any kind of digital reality, as it were. This is probably good news for those whose future ” fair bet that Christmas lists will include haptic vests, gloves, whole body suits or similar. Be of good cheer then! It’s a new year and although I’m stating the obvious, things really are very different business it is to operate out of bricks-and-mortar from this time in 2021. Inflation will certainly be troublesome, but shops. And if there was a single thing that emerged if you want a summary of 2022, it will be a year of recovery. from both shows, it was that physical retail is worth Learning to live with Covid has meant accepting that designing new things for, and it’s to be expected while things are different (and will continue to be so), life that this state of affairs will continue for the does not have to grind to a halt. It hasn’t, and the retail foreseeable future. shakeout that has marred the last two years looks to be at The prediction for 2022, therefore, is one of steady an end. Things are already better.

John Ryan is Stores Editor of business magazine Retail Week. He has worked for the title for more than a decade covering store design, visual merchandising and what makes things sell in-store. In a previous life, he was a buyer.