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Retail in Review – November & December: 2024 Preparations Begin

Retail in Review – November & December: 2024 Preparations Begin

As the year draws to a close, retailers cast their eyes onto 2024. The past couple of months have been incredibly busy, with ongoing festive chaos and wider preparations for the new year. While the beginning of the holiday season showed significant consumer resilience, customers’ shopping behaviors continue to evolve.

In our latest Retail in Review blog, we take a look at some retail news, and how November and December have impacted the retail industry…

Retail in Review<br />
September & October  2023<br />
Festive Hype, Sustainability & Generative AI: Infographic

Solid Start to the Holidays

In our last Retail in Review blog, we discussed how retailers were busy preparing for the festive hype with the holiday season being a hot topic in the build-up to winter. The festive shopping season began in strong form.

Black Friday generated a record $9.8 billion in U.S. online sales, showing clear signs that shoppers are willing to spend. In fact, overall retail sales in November unexpectedly picked up with lower gas prices allowing consumers to ease their pursestrings and spend more, according to Bloomberg. The rise in sales has clearly boosted the morale of retailers who have been making significant efforts to capitalize on the shopping peak. 

Amidst this festive chaos, brands continue experimenting with artificial intelligence (AI) to enhance the customer experience. Mastercard has rolled out a generative AI tool that acts as a personal assistant for shoppers and makes personalized recommendations. 

Evolving Consumer Preferences

The ability to try products physically remains significantly valuable. According to McKinsey, 85% of customers expect to purchase at least one item in-store in the 2023 holiday season. However, over the past couple of months, shoppers have started to lean on online sales channels, with convenience being the key driver. In fact, consumers have a high intent to purchase online in 2024. Gearing up for the anticipated online boom, Google Pay has teamed up with Affirm to make buy now, pay later (BNPL) options available for online and mobile payments in the U.S. next year. 

Moreover, retailers who want to attract customers in-store, need to offer them something they can’t get online. To deliver an exclusive shopping experience, Zalando has launched invite-only shopping for limited products. This provides a great opportunity for customers to enjoy exclusive shopping experiences.

In order to drive in-store footfall, retailers can also offer exciting and personalized offers that customers can’t resist. Better prices and promotions are more important to customers this holiday season, according to McKinsey. In fact, customers purchase and pay more attention to ads for products that are on sale. Retailers who use real-time customer data to personalize their promotions based on individual customer needs can set themselves apart from the competition. 

Preparations for 2024 Begin

As we approach the hectic end of the festive season and 2023 alike, retailers are eyeing their 2024 strategies. From teaming up with reliable technology providers to investing significantly in upgradation and growth, brands are levelling up to live up to evolving consumer expectations in the next year.

Walmart has invested over $500 million to upgrade 117 stores and will devote more than $9 billion over two years to modernize over 1,400 stores across the U.S. These upgrades will include better layouts, products and technological improvements to enhance the shopping experience for customers. Meanwhile, sporting goods retailer, Innovasport, has announced its partnership with Teamwork Commerce, deploying over 2,000 POS terminals over 250 locations across Mexico. These technological advancements only indicate the increasing adaptability of brands that are keen to attract customers in-store.

In spite of a challenging year for the retail industry, retailers seem to have a positive outlook for 2024, with a number of brands announcing growth plans. Uniqlo is set to drive growth with plans to double its current store openings in the US and Canada, with more than 20 new locations set to open in 2024. Ahead of stepping into 2024, Shein has confidentially filed for an initial public offering (IPO) in the US and could begin trading on public markets as early as 2024.

As the curtains fall on 2023, the retail landscape of 2024 awaits exciting transformations. Those who can constantly evolve themselves leveraging the latest technological innovations will thrive in the market.

Looking to revamp your technology stack to grow in 2024? Get in touch today!

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All I Want for Christmas is Shoes: How Are Apparel Retailers Succeeding Ahead of Super Saturday?

All I Want for Christmas is Shoes: How Are Apparel Retailers Succeeding Ahead of Super Saturday?

Christmas is here! Mariah Carey and Michael Buble are once again conquering the December radio airtime, the out-of-office autoresponders are on and, for many, the final touches of their Christmas shopping can finally be complete.

Research finds that Americans plan on spending an average of $975 on Christmas this year, with ‘Super Saturday’ – December 23rd – expected to be the busiest shopping day of the year. No doubt, a significant portion of those purchases will be in the form of gifts, and there is one retail segment that excels in this department: apparel.

From hats all the way down to shoes, and everything in-between – including the yearly ugly festive sweater that everyone pretends to love – apparel retailers play a huge role in Christmas gift giving. With Super Saturday around the corner, some will fare better than others, and those that succeed will be able to master the ability to deliver incredible customer experiences that leave in-store shoppers feeling valued. In our latest blog, we unwrap (pun intended) how apparel retailers will be achieving this…

All I Want for Christmas is Shoes: How Are Apparel Retailers Succeeding Ahead of Super Saturday?

Inventory is Critical

Typically, a busy stores results in a large number of purchases. Of course, this is exactly what retailers are hoping for, but with Super Saturday in mind, an increase in sales can quickly lead to empty shelves. If an apparel retailer runs out of stock too early in the day, they are met with a significant opportunity cost in lost sales.

Replenishment is key, and with the right technology deployed, retailers can accurately forecast demand, predict what items will sell best, and optimize their stock. With this insight, retailers won’t run out of stock. However, and just as importantly, they won’t over-order stock either, which leads to bloat, and ultimately wasted resources.

Effective inventory management is integral to being able to achieve this. With real-time visibility of stock throughout the supply chain, apparel retailers can maintain inventory levels across all locations, using accurate data to make better decisions, faster.

In-store, this visibility not only helps keep shelves stocked, meeting customer expectations during a busy period, but it allows in-store associates to know exactly where items are located, minimizing the amount of time customers spend waiting on the shop floor.

 

Efficient Transactions Across all Channels

As Super Saturday approaches, speed is everything. Retailers have no context for their customers’ circumstances. They might be finalizing their gift-buying, they might only just be starting. All a retailer can do is provide an efficient experience, delivering streamlined transactions that, again, minimize the amount of time customers spend waiting around.

The biggest fear for any customer when they step in-store is often the dreaded queue time. This year, apparel retailers can significantly reduce that concern with Teamwork Commerce’s Mobile Point of Sale (POS) solution. Capable of completing transactions, quickly, anywhere in-store, shop floor associates can easily deliver the efficient in-store experiences that customers crave.

With effective inventory management enabling associates to find the exact item, in the correct colour and correct size, quickly, Mobile POS rounds off the experience by completing transactions in same spot. Customers don’t have to go and join a queue, they can step in-store, tell an associate what they are looking for, have their desired items brought to them, and finalize their purchase there and then. A potentially stressful situation is made seamless, and is complete in minutes, allowing customers to move onto their next task feeling valued and satisfied.

Click here to find out how Teamwork Commerce transformed Prada Shoes’ POS capabilities, significantly improving the brand’s ability to deliver unparalleled customer experiences.

Promotions and Offers

While consumers might be expecting to spend close to $1,000 on average this year, it is no secret that the economic climate is causing a number of challenges for customers around the country. With that in mind, perhaps the ultimate value that retailers can provide shoppers this year is in a more cost-effective purchase.

Retailers who can provide their customers with unique offers and discounts can not only meet customer desires for lowered costs, but they can do it for products that are relevant to their needs. With Teamwork Commerce’s Secure CRM solution deployed, retailers can deliver personalized experiences to customers that improve their overall experience. This includes bespoke promotions and loyalty rewards based on previous interactions with the brand and purchase history.

Super Saturday Ain’t Ready

December 23 is nearly here, but with the right technology in place, apparel retailers can not only benefit from the expected hype of Super Saturday, but by delivering unique, seamless and reliable customer experiences during this period, they can develop long-term relationships with customers that reach far beyond the festive period.

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Endearing Yourself to Customers: 3 Ways Retailers Can Unleash the Power of Clienteling

Endearing Yourself to Customers: 3 Ways Retailers Can Unleash the Power of Clienteling

As the retail landscape continues to evolve, the concept of clienteling has become a powerful tool used by retailers to refresh and reshape how they interact with their customers. With its ability to help build and nurture personal relationships with customers, clienteling goes beyond simple transactions. The technology can play a pivotal role in delivering a unique shopping experience that enhances brand loyalty.

In this blog, we outline 3 key ways that retailers can maximize their use of clienteling technology to build long term relationships with their clients…

 

1. Add a Personal Touch to the Customer Journey

 

A clienteling solution allows retailers to bring a more personal approach to their customer interactions. By leveraging data on consumers’ order history and purchase behavior, retailers can create individual recommendations and provide a tailored level of service that customers appreciate.

Customers will be shown products that align with their wants and needs, minimizing their browsing time and creating a more efficient experience the improves conversion rates and average order value.

Personalization is an effective technique that retailers can deploy to improve customer engagement, help to stand out from a crowded marketplace and develop customer loyalty. Ultimately, this creates long-term repeat business that contributes towards a more sustainable business model.

 

2. Optimized Customer Communication

 

One of the benefits of clienteling is that it can be effectively utilized within customer communication channels such as on online apps, email and text messages. As social selling continues to develop through channels such as WhatsApp, a seamlessly integrated clienteling strategy across various customer touchpoints allows retailers to provide updates, out-of-stock information and the latest promotions directly to their customers.

By adopting a reliable clienteling solution, retailers can seamlessly reach all of their customers on a personal level, offering a personalized experience while providing value with every communication.

 

 3. Wider Retail Tech Integration for Customer Satisfaction

 

Equipping a retailer’s team with an omnichannel, mobile retail solution – with an integrated clienteling platform – can significantly improve the business’ ability to deliver high quality customer experiences, boosting retention and increasing profitability.

With clienteling deployed within an existing omnichannel solution, retailers can follow up with customers after appointments, announce new product drops and keep them updated on replenished stock. Continuing personalized conversations with customers post-sale provides additional sales opportunities, and continues to drive customer loyalty.

The more the customer feels they are receiving a personal and bespoke experience from the brand, the better a relationship becomes, creating a virtuous cycle that fosters loyalty between retailer and customer.

Our joint solution with leading clienteling platform, Endear, delivers an all-in-one clienteling service on a mobile point of sale system. It equips retailers with a flexible, in-store solution that offers seamless communication and shoppable product recommendations curated from customer purchase history. Our partnership with Endear has proven to create an increase in order frequency, average order size and return on investment on technology implementations for our customers.

 

The Future of Retail Relationships

 

As technology continues to evolve and provide retailers with new and innovative ways to deepen customer relationships and deliver exceptional customer experiences, the power of clienteling within a wider retail technology strategy can be a difference maker in a brand’s efforts to stand out from the competition.

By delivering personalized shopping experiences, harnessing customer data and building meaningful relationships with customers, retailers can create an experience where customers feel valued, understood and, importantly, loyal to the brand.

Want to find out more about how clienteling can benefit your retail business? Book a demo with us today!

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From OMS to OMG: 3 Key Tips to Perfecting Order Management

From OMS to OMG: 3 Key Tips to Perfecting Order Management

According to Deloitte, 95% of consumers plan to take advantage of the holiday shopping season. While consumer appetite for in-store experiences is on the rise, online purchases remain popular, with Statista finding that approximately 15% of all US retail sales come through e-commerce channels. Today’s consumer wants to shop on their terms and retailers must remain agile to evolving demands. Whether online, in-store or a blend of both, shoppers need their orders to be fulfilled quickly and seamlessly – especially during an already stressful festive period.

In this blog, we’ve offered 3 tips for retailers to perfecting order management. Not only does this enable them to effectively capitalize on festive footfall, but it also helps to deliver seamless experiences and increasing customer satisfaction in the long-term.

 

Embrace Omnichannel

Perfecting the order management process requires to avoid the in-store rush and save time. Many customers shop online or take advantage of omnichannel offerings such as Buy Online, Pick up In-store (BOPIS), and Buy Online, Return In Store (BORIS) while shopping. Customers want their orders to be fulfilled quickly, accurately and seamlessly, and long waiting times or out-of-stock items only result in increased consumer frustration.

To minimize out-of-stock situations and reduce errors, retailers should be able to integrate their order management system (OMS) with wider retail technologies such as in-store point-of-sale (POS), eCommerce channels, and inventory management. By combining their OMS with inventory, retailers can better manage their stock, fulfill orders more efficiently, and create clear visibility for their customers, providing them with accurate expected fulfillment dates. Using the Teamwork Commerce OMS, retailers can automate fulfillment processes, driving speed, accuracy and efficiency.

Drive Automation

Manual order fulfillment comes with its challenges. On top of the labor cost of dedicating staff time to fulfilling orders, manual fulfillment is also prone to human error, which can lead to inaccurate deliveries – significantly hindering the customer experience. By automating fulfillment, retailers can streamline their processes and manage their orders more efficiently. This helps ensuring customer satisfaction, providing retailers with increased sales opportunities and improved customer loyalty in the long term.

Automated fulfillment can also drive wider operational efficiency. Streamlining key touchpoints such as inventory management, order processing and picking and packing, retailers can better utilize the time of their staff. With automated fulfilment processes in place, retailers can dedicate more labor resources to the shop floor, focusing on providing valuable customer experiences. The insights gathered from automated processes can also empower retailers to create more effective strategies and improve decision-making, equipped with real-time visibility of their supply chain.

 

Optimize Returns 

Returns are an undesirable, but inevitable part of retail. While high-quality shopping experiences are crucial for customer satisfaction, retailers must not overlook the importance of seamless return experiences, which can positively impact sales for retailers. In fact, research undertaken by Klarna suggests that an incredible 84% of shoppers would turn their back on a retailer as a result of a bad returns experience. Retailers who can manage their returns effectively open themselves to a significant competitive advantage.

To find the balance between providing easy returns and managing losses, retailers should leverage integrated returns management systems. Teamwork Commerce’s integrated Returns Manager helps retailers process returns more efficiently by automatically processing refunds back to the original card regardless of the sale channel. Additionally, retailers can include pre-approved return codes with shipping documents to allow customers to easily return or exchange items with minimal effort.

 

Embracing Order Management 

As we approach the end of the year, retailers will already be looking at their strategies 2024. Perfecting order management is crucial to thriving in both online and offline retail environments, and those who act now can set themselves up for a great start in the new year.

Looking to implement a connected solution to revamp order management? Get in touch here.

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Item-Level RFID: Minimizing Shrink Without Sacrificing Experience

Item-Level RFID: Minimizing Shrink Without Sacrificing Experience

Originally posted on SalesTech

By Oleksandr Martyshko, Senior Mobile Software Architect at Teamwork Commerce

In today’s cost of living crisis, price-sensitive customers and fierce competition are proving to be a pressing challenge for retailers. The rise in shoplifting rates is only exacerbating the situation, increasing the difficulty for retailers to sustain their profits. In fact, US retailer, Target, is expected to lose $500 million from its 2023 profits due to missing inventory.

Leading UK supermarkets, including Sainsbury’s and Morrisons, have introduced self-checkout barriers to curb shoplifting. However, these solutions only seem to be damaging the customer experience and slowing the checkout process at one of the most important touchpoints in the customer shopping journey.

What’s more, uncertainties persist as to whether these barriers are effective enough to reduce shoplifting. In reality, shoplifters can easily evade these barriers. There is nothing to stop someone from taking a few high-value items from the shelves, scanning a pack of gum at the checkout and using the resulting receipt to leave without being noticed.

Retailers are right to prioritize their efforts in reducing shrink. However, they must keep the bigger picture in mind. The best available solution should be able to both minimize theft without the consequence of a poor customer experience. Fortunately, in today’s technology-driven retail environment, RFID can deliver exactly that.

 

Curb Shoplifting Through RFID

 

RFID technology can deliver a seamless buying experience by automatically scanning all items in a shopper’s basket within seconds, and providing customers with the ability to check out independently at their own pace. This speeds up and creates a more seamless checkout process for shoppers while reducing in-store queuing. It also allows staff members to allocate time to deliver high-quality and tailored customer experiences elsewhere within the store. However, it also plays an important role in minimizing theft.

Retail shrink – and shoplifting in particular  – is one of the most damaging factors in retail losses, and must be reduced in order to drive profitability. Retailers need to find viable solutions that enhance in-store security, and RFID-powered self-checkout technology can provide exactly that. Advanced self-checkout kiosks, powered by RFID, are capable of triggering alarms in case a shopper attempts to take a tagged item without paying for it.

Retailers can effectively track and monitor inventory by attaching RFID tags to products at item-level. This improves the detection of unauthorized removal or theft. RFID-enhanced security assists retailers in asset tracking, creating a safe shopping environment and minimizing losses.

The technology can also be used to curb returns fraud, which cost retailers in the U.S $84.9 billion in 2022. NRF calculated that for every $100 in returned merchandise accepted, U.S retailers lose $10.40 to return fraud. With RFID tagging, in-store associates are able to instantly identify whether a so-called ‘returned’ item was ever previously purchased in the first place.

Read More: SalesTechStar Interview with Kevin Knieriem, Chief Revenue Officer at Clari

Minimize Retail Shrink

 

RFID can also empower retailers to reduce shrink by enabling retailers to track their inventory in real-time throughout the supply chain. Using RFID tags, retailers can increase efficiency and accuracy alike, gaining clear visibility of all tagged products from the warehouse through to the shop floor.

Deploying RFID solutions not only allows retailers to identify specific missing items, but also informs them of when and where they get lost. With clear knowledge of where their inventory goes missing, retailers can identify critical spots. They can then take appropriate action to mitigate their losses.

 

Improve Customer Experience

 

Retailers aim to provide shoppers with an easy and enjoyable shopping experience. This relies on a number of factors, namely personalization, convenience and speed. Traditional POS systems can often lead to long queues and wait times. This can negatively impact the overall customer experience. To deliver top-tier customer service, retailers should look to deploy advanced solutions that cut checkout times and optimize the number of transactions completed during operational hours. Retailers can leverage RFID-powered self-checkout systems to create convenient and fast checkout experiences.

As the final touchpoint for most customers, a convenient and speedy checkout has the potential to make or break their in-store experience and influence their decision to return to the retailer. Retailers who can simplify checkout processes can deliver high-quality experiences that create a loyal customer base.

As retailers continue to confront the challenges of driving profitability with such high competition alongside the rise in shoplifting, they must ensure they are deploying the best technical solutions to position themselves at the forefront of the market and continue to sustain revenue. RFID technology can significantly reduce shrink through shoplifting whilst assisting retailers with inventory management and tracking. However, most importantly, it plays a crucial role in helping retailers improve the overall customer experience with a speedy checkout process.

Read More: AI: Mending the Rift Between Legal and Sales

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3 Key Trends to Keep an Eye on at NRF 2024: Retail’s Big Show

3 Key Trends to Keep an Eye on at NRF 2024: Retail’s Big Show

As we count down to the kick-off of NRF 2024: Retail’s Big Show, the excitement for one of the industry’s most hotly anticipated trade shows only continues to build. Make it matter, the slogan for this year’s event, calls for exhibitors, speakers and attendees to take meaningful action now, following a challenging year for retail.

With over 1,000 exhibitors covering 300,000 square feet of New York’s Javits Center, NRF 2024 will provide visitors with the opportunity to experience firsthand the latest innovations that will shape the retail industry in 2024.

With that in mind, we’ve outlined 3 key trends that we expect to reign supreme at this year’s NRF event…

 

Anti-Theft Focus

So much of this year’s retail discourse has been dominated by theft and the challenges it has caused retailers. In fact, according to NRF, retail crime accounted for approximately $112 billion in industry losses in 2022. Retail theft is rising. However, CRN, reports that despite the gradual increase in theft, there hasn’t necessarily been a shocking increase in the number of incidents over the past few years.

Concern still remains, though. The brazen attempts to steal products showcased by consumers in recent months has brought the subject closer to the attention of retailers. Unfortunately, it is also impacting consumers as well – with Statista finding that nearly a quarter of shoppers have chosen to visit stores less frequently due to retail theft.

Ahead of NRF 2024, don’t be surprised to see a number of exhibitors focusing on anti-theft technology solutions that can alleviate theft concerns for retailers. Whether it is RFID-based product tracking, secure self-checkout terminals or wider loss prevention innovations around in-store cameras or alarms, anti-theft is expected to be high on the priority list this year.

Teamwork Commerce will be demonstrating its RFID-Powered Self-Checkout solution at this year’s event, showcasing the very best in secure Point of Sale (POS) technology. Visit booth #5957 to see why the solution has been deployed in over 2,000 stores worldwide. 

In-Store Evolution

While retailers strive to keep shoplifters out of their stores, they are still determined to bring purchasing customers in. As consumers continue to show an eagerness for experiential retail, shop floor activity has come into the spotlight for many retailers, who are now prioritizing their in-store capabilities to meet customer demands.

Over the last couple of years at NRF we have seen innovations such as Virtual Dressing Rooms, Mobile Point of Sale and Self-Checkout Kiosks become increasingly intuitive. Expect to see further developments in January as technology providers continue to leverage emerging technologies – such as generative AI and Virtual Reality – to develop their solutions. With the right investment, retailers will be able to deliver high-quality shop floor interactions that create seamless in-store experiences.

At this year’s show, Teamwork Commerce will be demonstrating its brand new iPhone POS solution, Boasting exceptional mobility, and an excellent User interface and experience.

Understanding Customer Priorities

Improving in-store capabilities to attract customers is one thing, but retaining them is another task in itself. In order to develop long-term relationships with in-store visitors, retailers must be able to get to know their wants and needs, and cater towards them.

The current state of the economy has only exacerbated this challenge, with customers understandably tightening their wallets. At NRF 2024, our final expected trend will be focused on building customer relationship. Through Customer Relationship Management (CRM), Clienteling and Data and Analytics solutions, retailers can begin to really understand their customers, and curate specific offers and discounts that fit their needs.

Not Long to Go…

NRF 2024: Retail’s Big Show is round the corner. As we count the days down to stepping foot into the Javits Center, we can’t wait to gather some incredible insights, bear witness to emerging technology solutions and make new connections from across the retail industry.

Interested in learning more about how Teamwork Commerce can help your retail brand evolve its technology capabilities? Book a meeting with us at NRF here!

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read more

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