Innovate or Optimize? The High-Stakes Choice Facing Retailers at NRF 2025
As we gear up for NRF 2025, the pressure on retail executives has never been higher. Over the past year, we’ve spoken with hundreds of leaders in retail—CEOs, CDOs, and industry thought leaders —and one resounding theme echoed throughout our conversations: “How do we drive greater profitability while fueling new growth into our eCommerce business?” and “What role does AI play in this?” It’s a tall order. The classic “you have to spend money to make money” feels at odds with today’s obsession with efficiency and profit.
Innovate or optimize: Which will you choose?
Yes, optimizing your current business by revamping your eCommerce platform, site search, loyalty program, mobile app, or further personalizing the shopper experience will enhance performance, but you have to ask yourself ‘Will these incremental improvements spark true growth? Will they transform your business and prepare you to compete in the future of retail?’
With Amazon and Walmart capturing more of your customers’ spending and loyalty every day —offering greater choice, more product availability, faster delivery, and competitive prices— you could go on optimizing forever and never keep up.
According to a 2025 retail themes report by Boston Consulting Group’s (BCG) innovation has become the single most important driver of profitable success and a competitive edge. While investing in new technologies and strategies demands boldness, the real risk today lies in not innovating.
The companies poised to lead in this era of retail transformation will be those that embrace bold new strategies. BCG and Coresight Research both identify AI and innovative new revenue streams emerge as central themes. Based on thousands of interviews conducted with executives at major retailers, BCG and Coresight cite three strategies that will drive the most sustainable growth and profitability now and into the future: marketplaces, retail media, and social commerce.
Rethinking retail innovation through new revenue streams
These new revenue streams build on and reinforce a retailer’s core business, creating a "value flywheel." At Mirakl, our customers rely on us to help take an innovation-first strategy through AI-powered marketplace and retail media solutions.
For Mirakl’s customer, Macy’s, a marketplace allows them to drive consistent growth and offer a more diverse product assortment to their customers.
Adrian Mitchell, Chief Operating Officer and Chief Financial Officer at Macy’s says, “We're excited about our marketplace from two dimensions. First is the customer experience: broader assortment, great styles, edited selection. Second, with the marketplace, we have additional flexibility to carry assortment that may be more profitable for us on marketplace versus in our own distribution channel. It's a margin driver for us.”
With more traffic and greater customer loyalty that organically comes with operating a curated marketplace, there is an even more compelling growth opportunity for brands and marketplace sellers who seek visibility with highly engaged shoppers through retail media.
In Walmart’s FYQ1 2025 earnings call, John David Rainey, Chief Financial Officer & Executive Vice President noted that “Walmart Connect saw its advertising sales grow 24% year over year due to solid momentum with new advertisers, mainly from marketplace sellers. The company also mentioned that U.S. ad sales saw over 50% growth year over year from marketplace sellers, while the number of active advertisers grew by nearly 19% year over year.”
That’s why at NRF this year, we’re diving into how these strategies can unlock new revenue streams while protecting margins. If you are sick of losing customers to Amazon and Walmart and you are ready to lead change in the retail game, join us for a chat or at one of the sessions below.
Tired of just optimizing? Join us at the innovation sessions.
Rethinking retail innovation through new revenue streams Monday, January 13 from 9:15 AM – 10:00 AM → Expo, Level 1, Expo Stage 2
The world’s top retailers reveal how they are unlocking new revenue streams to stay ahead of the competition. From new business models to new distribution channels, find out what innovations retailers are investing in to drive growth.
Michaels CEO talks through innovations driving new pathways for growth Sunday, January 12 from 12:10pm to 12:40pm → Javits North, Level 4, Mirakl Stage
Find out how Michael’s has launched a marketplace for handmade goods and componentry. CEO, Ashley Buchanan will also reveal another new growth strategy and an enhanced in-store experience.
Unlocking new paths to growth with Ulta Beauty Monday, January 13 from 11:45am to 12:15pm → Expo, Level 3, Expo Stage 4
Discover the innovative business models Ulta Beauty is investing in to rise above competition and meet customer demands.
Can’t wait for NRF? Catch our session from last year on how Saks is harnessing the power of their marketplace without losing their brand DNA.
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See you at NRF!
Stop by Booth #5557 or book a meeting with one of our retail experts to explore how Mirakl can help power innovation that creates real revenue growth.
