In this episode of What Just Happened, Christine Russo interviews Sucharita Kodali, VP and Principal Analyst at Forrester Research, to unpack the ever-evolving dynamics of digital transformation in retail. Kodali shares her perspective on how retailers should approach innovation with caution, emphasizing the importance of testing and two-way-door decisions—those you can reverse—especially in areas like generative AI and emerging tech. She advises brands not to blindly follow Amazon’s lead, but to embrace its spirit of calculated experimentation and long-term thinking.

The conversation explores the cyclical nature of retail brand equity, using Target and Gap as case studies. Kodali argues that strong cultural equity, even when dormant, can be revived with the right leadership and strategy. Target’s recent stumbles, she believes, are more operational than existential, while Walmart’s recent success is attributed to strategic CapEx and improved store design. She notes that Target’s fatigue is reversible, and predicts leadership changes could be a catalyst for revitalization.

Russo and Kodali also dive into innovation in physical retail, including Urban Outfitters' Re/Reclectic concept, and the nuanced state of live shopping in the U.S. versus China. Kodali suggests that Americans lean toward short-form, influencer-led, asynchronous content rather than livestream commerce. She highlights Nordstrom’s quiet but promising use of vertical video by store associates and the challenge of inventory keeping pace with demand driven by social media. The episode ends with a nod to the importance of automation, retail media, and ongoing trend analysis as retailers navigate what's next.