AI Brings the Buzz at NRF 2025

Billed as “Retail’s Big Show,” NRF 2025 brought together the biggest names in retail for educational sessions, networking and product discovery. Hosted by the National Retail Federation (NFR), NRF 2025 took place in New York City from Jan. 12-14.

John Furner, president and CEO of Walmart U.S. and Azita Martin, vice president and general manager of Retail & CPG, NVIDIA, kicked off NRF 2025 with a conversation on how artificial intelligence (AI) is being used in retail.

Furner and Martin shared examples of the ways artificial intelligence is being used in the supply chain. Lowe’s has created a digital twin of 1,700 of its stores, Martin said, updating several times a day with operational and inventory data, and is now trying 3D digital twins with store planograms to optimize merchandising.

“As a result, it will simulate different layouts, to really optimize how customers are shopping in the stores,” she says. “How to change their layouts, and ultimately improve their sales and revenue.”

Furner says he likes to think of digital twins like a video game.

“It’s an idea in your head, and there’s a reality you’ve created. You simulate and play in it and results happen,” he says. “You can do the same thing in business.”

Adam Gunnett, independent retailer and director of IT and business intelligence at Busy Beaver Building Centers, says AI was top of mind for many attendees and vendors at NRF 2025. One of the most meaningful takeaways for him was understanding that the next growth frontier is within the store.

“The big retailers are trying to replicate what the local independent hardware retailer has been doing for generations. The big guys are investing millions on sensors and AI to increase conversion rates and sales dollars,” Gunnett says. “The independent retailer can accomplish the same thing by having knowledgeable and engaged staff.”

Themes and Highlights From the Show

Other keynote speakers included Pete Nordstrom, president and chief brand officer for Nordstrom Inc.; Brian Cornell, CEO of Target; Mary Dillon, president & chief executive officer of Foot Locker, Inc.; Doug Herrington, CEO of Worldwide Amazon Stores; Tracee Ellis Ross, award-winning actress, producer and CEO/founder of Pattern Beauty; Tommy Hilfiger
founder and principal designer of Tommy Hilfiger Global; Alex Rodriguez, CEO and chairman of A-Rod Corp; and Calvin McDonald, CEO of Lululemon.

Enhancing in-store experiences and redefining product discovery for customers were two key themes for NFR 2025, with vendors offering solutions that improve a customer’s shopping efficiency while improving their experience. AI is transforming how retailers connect customers with the right products.

Other key themes included reimagining supply chains and return management, using social media to build awareness and foster loyalty and off-site advertising.

The Future of Retail

Gunnett says several innovative concepts stood out to him on the show floor as new and unique, including automated scents, smart mousetraps, smart shopping carts and smart soda coolers.

“While they might not be practical for independent retailers now, they are where we are heading and can take customer service and experience to the next level,” Gunnett says.

A panel session with Karen Etzkorn, chief information officer for Qurate Retail Group, Trang To, vice president of omni at Tapestry, and Ellen Svanström, chief digital information officer with H&M, shared how their companies are using advanced technologies like biometrics, computer vision and ambient intelligence for hyper-personalization.

See the full event recap here.

 

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