What: The National Retail Federation’s Big Show saw a common theme, manage inventories and costs conservatively and cautiously and be ready to pounce on whatever shopping trends and hot items emerge.

Why it is important: These forecasts and takeaways can help retailers reach consumers who are becoming tapped out on savings and building up on credit while also shifting towards spending on experiences rather than stuff with the inevitable recession.

The National Retail Federation’s Big Show was packed with more than 35,000 attendees from 75 countries marking a near-record high for the conference. A common theme was discussed between industry experts and economists: manage inventories and costs conservatively and cautiously and be ready to pounce on whatever shopping trends and hot items emerge. They predict that 2023 will be split in two halves for retailers; a tough first half with a rebound in the second half of the year.

With the inevitability of a recession, consumers are shifting towards spending more on experiences while tapping out their savings and building credit. Economists and industry experts said the key to long-term success is to: strengthen engagement with consumers by providing richer experiences that are channel integrated, adopt newer ways to generate additional revenues such as AI, resale, or marketplaces, and be agile and open to change.

In the slowing consumer environment, retailers should focus on their current customers by finding ways to treat them better with a better experience, while also keeping up with the pace of change in the industry and seeking to reach consumers at all touchpoints.

Forecasts and takeaways from NRF’s Big Show