Inside the Mind of the Retail CEO
Exclusive interview with Tracy Mullin, President and CEO of the National Retail Federation
The combination of a nervous consumer, a shaky economy and a historic presidential campaign means that there has never been more at stake for the retail industry. So, what's on the minds of retail CEOs?
We sat down with Tracy Mullin, President and CEO of the National Retail Federation (NRF) to find out. Read on to see what this industry insider has to say about consumer trends, NRF’s economic outlook for 2008 and how economic concerns will affect the upcoming election and influence priorities on Capitol Hill.
What is on the mind of the retail CEO today?
Well, I think the reason the economy is so top-of-mind for retail CEOs is that it affects everything they do. It affects their consumer, their consumers’ thinking and how their consumers spend. It’s critical. And, what’s happening in the US economy is certainly reverberating around the world and having a dramatic impact on world markets. So, it’s probably the single most important issue, and it’s probably 1, 2, and 3 in the minds of CEOs even though there are some other issues as well.
What is the NRF’s outlook for the coming year?
Well we’re projecting about a 3.5 percent increase in retail sales for 2008, and that’s a kind of grim prediction. Because if you look at the last ten years, retail sales have increased 4.6 percent on average and that includes two very down years — 2001 and 2002 — where we really were in a recession. So, we’re not bullish on 2008.
What strategies are retailers adopting to deal with this uncertain future?
I think every company is probably dealing with it differently, but I would guess a lot of them are looking at ways to cut costs and cut expenses. A lot of them are trimming their inventories. They’re looking at staffing and cutting wherever they can without having too much of a negative impact on their business. I think a lot of smart companies are looking at this as a time to invest in new technologies, and I think that’s intriguing. We’ll see how that plays out in the coming years.
What advice do you have for retailers about using technology and analytics for competitive advantage?
One of the things that’s very exciting right now is how some cutting-edge retailers are beginning to adopt new technologies to give them a competitive advantage. One of those technologies, certainly, is analytics. It’s really interesting to see how analytics are being used in companies and translated for their advantage, and it’s very exciting to watch.
How do you see them using technology for competitive advantage?
Certainly there are a couple of major buzzwords right now: Analytics is a big area for growth, price optimization, and mobile technology. Those are the three areas that I think we’re hearing more and more. Companies are looking at analytics as an opportunity to get an edge on their competition.
Do you think they will continue to invest in technology in the coming years?
Technology is a real differentiator for most retail businesses. It really drives the business. People who don’t know retail think it’s about the product, and it certainly is about the product. If you don’t have the product you have nothing to sell. But, technology is really a key driver. And so, yes, I think technology is going have a major influence.
How will the next US president influence retailers?
The presidency will have a major impact on retail. Each person who takes the presidency has a different mindset and a different approach to the major issues. Certainly you’ve seen a real difference among the three candidates that we’re looking at right now, and it’ll be interesting to see how that all plays out on issues like international trade, healthcare, labor and management policies and a whole range of issues.
Where else in the world is NRF expanding?
We have technology shows that we’ve done for five years in the UK and Europe. We have done a technology show in Japan for three years. We’re launching an e-commerce show in Amsterdam at the end of this year, and we’re looking at more global activities for NRF in 2008 and going forward.
Why are those areas important to NRF?
We are a global organization. A lot of our focus has been on the US, but we think we need to serve our members abroad more effectively. So, we need to be where they are.
What coming trends have you and NRF excited?
There’s a lot of retrenchment by the consumer right now, much less spending. We’re seeing more and more focus on practical spending rather than luxury or frivolous spending. Consumers are really hunkered down and most of their money is going for groceries, gasoline, home heating oil, just keeping the family going. And so I think it’s going to be a tough time for retailers going forward.
Are there trends on the retail side that you’re excited about?
Well, I think if you look at the different sectors in retailing there are some bright spots. Certainly, the discounters are going to see some opportunities if they manage their business properly. If they’re able to communicate their compelling message to their customer, I think they will be able to do well. The dollar stores have great products at rock-bottom prices and they’re very easy to shop. And so, again, if they do a good job of getting their message out that will attract the customer.
Tell me how the partnership with SAS came about.
NRF aggressively looks to partner with leading-edge companies that can provide a value proposition for our membership. We like to ally ourselves with the most forward-thinking companies out there. We rely on them to tell us what they think is going on in the industry, and then we can tell them what we think is going on in the industry. Together, we probably get a pretty good fix on it. So, we really rely very heavily on companies like SAS that are forward-looking and have a good grounding in retail.
What is the benefit for NRF and its members?
NRF partners with key companies to bring new knowledge, new tools and new resources into the industry and to be able to communicate those. So, we offer SAS a platform to communicate with those who are at the NRF Big Show and other conferences throughout the year through speaking opportunities and so forth. And, hopefully, NRF can provide SAS with some entree to retailers they may not know.
About Tracy Mullin
Tracy Mullin was elected President of the National Retail Federation by a unanimous vote of the NRF board of directors in 1993. She had previously served as President of NRF's Government and Public Affairs Division. NRF, an organization created by the merger of the National Retail Merchants Association (NRMA) and the American Retail Federation, is the world's largest retail trade group.
Mullin joined the National Retail Merchants Association in 1976 and was promoted to a series of positions of increasing responsibility, including Vice President, Senior Vice President and Executive Vice President of the Washington Division. Prior to joining NRMA, Mullin served as Senior Legislative Assistant to the Minority Leader of the US Senate and as Assistant Press Secretary to US Senator Hugh Scott of Pennsylvania.
Mullin serves on the executive advisory board for the Center of Retailing Education and Research at the University of Florida and the national advisory board for the department of retailing at the University of South Carolina.
A native of Washington, DC, she received her Bachelor of Arts degree in political science from Boston University.
|
