1PitchBook Data, Inc.John Gabbert Founder, CEONizar Tarhuni Vice President, Institutional Research and EditorialPaul Condra Head of Emerging Technology ResearchInstitutional Research GroupAnalysisPublishingDesigned by Julia MidkiffContentspbinstitutionalresearch@pitchbook.comPublished on January 23, 2024EMERGING TECH RESEARCHTakeaways From NRF 2024A review of key trends, opportunities, and outlooksPitchBook is a Morningstar company providing the most comprehensive, most accurate, and hard-to-find data for professionals doing business in the private markets.Eric Bellomo Analyst, Emerging Technology eric.bellomo@pitchbook.comKey takeaways from NRF 20241Introduction2Conference overview and observations32023 deal recap6Company highlights7Key takeaways from NRF 2024• AI ubiquity: Discussion of AI was unavoidable at NRF 2024 as retailers tested various use cases and planned for multiyear experimentation. Vendors were similarly quick to tout innovative use cases. Significant future value will likely concentrate in back-end use cases, and retailers cannot afford to slow pedal innovation.• Channel strategies come into focus: Retailers recognize the need to meet customers across preferred channels and are investing in channel optimization. Representatives from brands like Levi’s, Glossier, ALDO, and Chewy discussed their strategies and requisite technology investments.• Vendors display interest in the middle market: Vendors are targeting middle-market retailers following Shopify’s move upstream and growth headwinds with SMBs. Some digital-native brands are also prioritizing agility after accumulating bloat within their tech stacks.• Traceability use cases are nascent: Blockchain and Web3 use cases remain nascent for retailers, though startups demonstrate potential in digital passports, supply chain transparency, and luxury resale markets. Key tailwinds include upcoming digital product passport regulations and growth in international markets, but usability and user experience remain barriers to mainstream adoption.• Profitability returns to the fore: All links in the retail value chain, from technology vendors to retailers, are grappling with how to improve profitability after years of rapid expansion. This transition will take time and VCs extend diligence cycles. As startup fundraising cycles kick off, strong business fundamentals will be a prerequisite for securing funding.• Data enrichment is a strategic imperative: 360-degree views of customers remain critical but elusive due to system complexity and internal data silos. As e-commerce inches further into AI-powered operations, clean data is strategically critical.• Inventory management, shrinkage, and security remain pressing: Real-time inventory management, shrinkage, and security issues are growing in significance. Retailers discussed an extending digital risk vector and the associated revenue headwinds.2PitchBook Analyst Note: Takeaways From NRF ...
