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THE FUTUREOF RETAIL

Promoting top brands, embracing new tech andengaging new consumers were cited as top trends atthe annual Global Retailing Conference, sponsoredby the Terry J. Lundgren Center for Retailing at the

University of Arizona.

By Tony Lisanti

While innovating customerengagement was the theme oftheannual Glohal Retail Conference,sponsored by the University of Arizona,the growing importance of omni-channelretailing, social media, high profile brandsand the Millennials was the focus ofkeynote presentations by retail and brandexecutives.

The roster of more than a dozen speakersfor the conference, which was held in Apriland attracted more than 350 attendees,included top retail execs from Macy's,Home Depot, Walmart and Petsmart, brandlicensing executives from Li & Eung andSaban Brands, as well as various consumerand research experts.

Terry Lundgren, chairman, presidentand chief executive officer of Macy's, gave

the opening keynote presentation andemphasized his vision ofthe departmentstore retailer through the acronym "MOM"(My Macy's) and the terms "omni-channel"and "magic selling."

Lundgren, who refers to himself aschief customer officer to emphasize theimportance of targeting and engagingcustomers in every possible way, revealsMacy's extensive commitment andopportunity to reach a new groupof consumers, the Millennials,who are ages 13 to 30, 70 millionstrong in the U.S. and bigger thanthe Baby Boomers.

Lundgren explains thatthis is the first generation toincorporate technology inevery aspect of their lives

Top: Terry Lundgren, Macy'sRight: Elie Dekel, Saban Brands

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on an hourly basis. He says this is avery different customer who requiresMacy's to do things differently thanever before to attract them.

Lundgren says that conferring withMacy's employees in this age groupis a key way the retailer is trying tounderstand shopping patterns andneeds of customers. Macy's is alreadyusing online, social media, mobiledevices and its popular live events,such as the Macy's Thanksgiving DayParade, its July 4th fireworks and theFlower Show, to engage customers."Never fail to astonish the customer,"says Lundgren.

The Macy's CEO also points outhow the retailer continues to improveits localization of merchandiseassortment strategy, as well as usingtechnology to better manage inventory. Macy's isturning almost 300 stores into fulfillment centersthis year to handle online orders and better serveits customers.

Macy's is also expanding with: "Beauty spot" kiosks, which allow customers to

browse and select products while an associatebrings those products to the customer;

"Virtual mannequins," which will be able tochange displays based on time of day and otherfactors;

The "endless aisle," which will allow customersto surf a tablet device in store and view productassortment beyond just what is in stock in thatlocation and make a purchase.

Another key element and focus among keynotespeakers is the importance of licensed brands atretail and how they drive customer traffic andloyalty.

Elie Dekel, president of Saban Brands, explainshow the Paul Frank brand is growing worldwideand expanding into various new categories (seestory on page 76).

"We are capitalizing on the growing importanceand value of brands that are authentic, expandableand target passionate consumers," says Dekel.

Dekel says that Paul Frank now has more than 45licensees and is in more than 25 product categoriesand is expanding PF Kids and PF Teens.

Dekel says that Paul Frank is expanding

worldwide, and he is particularly bullish on China,where he projects there will be 50 Paul Frankstores by year end.

Rick Darling, president of LF USA, addressesthe importance of international expansion andthe popularity of designer and celebrity brands.He admits that Li & Fung is cautious of celebritybrands because of their unpredictability and thelength of time it takes to establish a long-termprogram. Popular designers, he believes, aren'tas risky, pointing to Georgina Chapman as anexample. Chapman and co-founder Keren Craigrecently partnered with LF USA for a line ofapparel and accessories set to launch in fall 2013.

According to Martha Van Gelder, director oftheTerry J. Lundgren Center for Retailing: "This is aunique conference with high level speakers in asmall setting that focuses on one central theme,such as customer engagement. The program is builtfrom 360 views on all aspects of retailing."

The annual event supports the "non-profit RetailCenter at the University of Arizona-one ofthe fewretailing business degrees (versus fashion) in theU.S.-for the benefit of raising the visibility of andpromoting careers in retailing," says Van Gelder.

There are currently more than 30 corporatepartners and sponsors.

Next year's global retailing conference will beheld on April 11-12, 2013, in Tucson, Ariz. For moreinformation, visit www.terryjlundgrencenter.org.

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