Industry event shines spotlight on tech and diversity

Whether it is location, format, or differentiation, NRF Europe 2025 highlights innovation and growth across the retail industry, writes Miya Knights, Retail Technology Publisher

The inaugural edition of NRF 2025: Retail’s Big Show Europe has this week brought the successful format for the US trade association’s New York show every January to the region. 

The launch event by the US retail trade association, the National Retail Federation (NRF), taking place in Paris this week, emphasised the industry's diversity and entrepreneurial spirit.

Matt Shay, NRF President and CEO, opened the show by focusing on the commonalities shared by retailers across the world. He pointed to the industry's pivotal role as the largest global employer, driving economic growth and innovation.

“The primary mission of the NRF is to advocate, communicate and educate,” Shay told attendees. “A programme like this one allows us to do all of those things by convening retail leaders from around the world, here in Europe, in the centre of where so many things happen. 

Regional benefits and challenges

After pointing to commonalities that tie retailers operating in different regions together, where the NRF is keen to export its brand to combat geopolitical headwinds closer to home, Shay stressed the importance of regional partnerships in bringing the US show to European shores. 

Juan Manuel Morales, President of EuroCommerce, which is the principal European organisation representing the retail and wholesale sector, followed Shay’s keynote to confirm the close transatlantic ties. But Morales also struck a much less conciliatory note on growth.

“Our sector is undergoing a rapid transformation that will require an investment of €600 billion by 2030 to face the triple transformation of sustainability, digitisation, and skills and talent development,” he said. 

“Doing business in Europe costs more to companies than in other geographies around the world. [...] We already have our own tariffs due to the fact that we do not have a true single market. The new European Commission has recognised that fact and has decided to reduce the large amount of overregulation that our sector has suffered for many years.”

In the eye of the beholder

Guillaume Motte, President and CEO of Sephora [pictured], then took to the stage to share the secrets of the beauty retail giant’s worldwide success. He said the company had tripled its sales during the last decade and doubled them since the COVID pandemic. 

This fittingly French pioneer was founded 50 years ago in Limoges, and has grown into a global leader in prestige beauty retail, with over 56,000 employees, more than 3,200 stores, and 500 brand partners across 35 countries. 

Motte shared a seemingly simple formula during his keynote, titled “We Belong to Something Beautiful”: a carefully curated portfolio of brands, seamless omnichannel experiences, a passionate network of 74 million loyal customers, and 46,000 expert in-store beauty advisors. 

He also highlighted Sephora’s strategy of applying this formula through the creation of exclusive offers, fostering strong brand partnerships, and leveraging technological advancements to enhance customer experiences.

Building out strong differentiation

“We have a very distinctive offer, and that's at the heart of our success,” Motte said. “We have people who select, for the right reason, products and brands that are going to resonate with our customer tribe. We share data, we share insight, we sell knowledge to develop products that are going to resonate with our customers.”

He also described Sephora’s approach to creating engaging retail environments, including the use of Beauty Hubs in stores and advanced technology tools, such as the Beauty Scan service for personalised in-store recommendations that runs on mobile devices and offers advanced recommendations.

Motte was very clear when emphasising the importance of digital integration. He said roughly one-third of Spehora’s business originated online, but that operating an omnichannel business meant the ratio of online-to-offline sales was less of a consideration.

“How do I call a transaction which is made by a customer walking into the store with the in-store mode of the app on their phone? Is it digital? Is it store?” he questioned. “I don't know. I don't care. How do I call an order, which is buy online, pick-up in store? Is it digital? Is it store? I don't care.”

Convenience is king, but community reigns

He cited initiatives such as Buy Online Pick Up In Store (BOPIS) and collaborations with delivery platforms to enhance customer convenience. The beauty retailer even partnered with rideshare operator Lyft last year to take online customers to the store to pick up their orders.

“We're going to bring customers to our stores so that they can experience the reality and the magic of Sephora,” he explained. He added that the company’s extensive store network meant it had a virtual network of warehouses from where it could fulfil online orders within an hour.

Community also plays a vital role in Sephora’s success, where Motte described loyal customers as ‘fans’: “When I say 74 million fans, these are people who are actually enrolled in our loyalty programmes, and who have purchased in the last 12 months, so are very active.”

He pointed to the prized source of data they provide: “It's an incredible source. What I like about these fans is that when you look at the top tier, it's a lot about offering them what money cannot buy. It's about making them feel part of our community.”

Technology at the forefront

In rounding up his presentation, Motte added that technology was also core to the implementation of flexible scheduling practices in certain regions to balance workload and quality of life for frontline staff.

He restated the core principles guiding Sephora’s success: offering differentiated products, enhancing retail experiences, fostering community engagement, and prioritising employee welfare.

But he closed by urging retailers to embrace similar strategies to drive growth and excellence in the industry, stressing the collective responsibility to "retail together" and leverage shared strengths.

To that end, Retail Technology magazine will share more overviews of the trends and innovations at the event, which includes over 200 retail and technology speakers, 25,000 square metres of exhibition space, and nearly 500 exhibitors showcasing various technologies and innovations.