NRF 2025
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Register NowRegister NowRegister NowThe retail industry is evolving fast, and 2025 is set to bring exciting changes. Whether it’s the revival of in-store shopping, the rise of social commerce, or AI-driven personalization, retailers are pulling out all the stops to create memorable shopping experiences. Discover the top trends you’ll see next year, and find out how brands are gearing up to meet the changing demands of today’s savvy shoppers.
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Predicting the future is a bit like trying to pick the winning lottery numbers or predicting how long it’ll be before you regret that new haircut. It’s an unpredictable science based on gut feeling and ceremonial lucky charms.
But when it comes to retail, we can take a look at today’s customer behavior and it’s not too hard to forecast what 2025 might look like, no tarot cards required.
From the, perhaps surprising, resurgence of in-store shopping to the not-so shocking rise in concern for our planet, some patterns are already taking shape. . So, grab your crystal ball (or maybe just a cup of coffee), and let’s dive into our predictions of the top five trends that will define the retail world in 2025.
Yes, eCommerce had its glow-up during the pandemic—who didn’t love the convenience of browsing from bed? But as it turns out, people miss the human connection of in-store shopping; 93% of consumers in a recent survey said that they were planning to do both online and in-person shopping this holiday season.
So why are more folks popping back into physical stores? While I’m sure many introverts will disagree, the fact is that people like talking to people, especially knowledgeable sales associates who can help them find the exact product they need without having to weed through three rounds of an AI-powered customer support chatbot. Sometimes, speaking to a real person or just simply seeing and touching the product can answer questions faster and easier than any description or robot ever could.
There’s also a growing sentiment of “buy local,” with consumers consciously choosing to support small businesses. Plus, reducing their carbon footprint by skipping international shipping? It’s a win-win for the environmentally conscious shopper.
It’s hard for smaller brands to stand out against giants like Amazon and Temu, who often win by offering unbeatable convenience and low prices; Amazon’s vast inventory and Prime shipping make it nearly irresistible for those who want something fast, while Temu appeals with its rock-bottom prices that are hard to compete with. When shoppers can get what they need quickly and cheaply, brands need to offer something different to keep their attention—and that’s where trust and transparency come in.
To build trust, brands need to be upfront and authentic about their products. Today’s shoppers are more discerning than ever; they want to know exactly what they’re buying, where it comes from, and how it’s made.
Brands that share details on ingredients, manufacturing practices, and supply chains appeal to consumers’ desire for honesty. Whether it’s disclosing sustainable sourcing methods or offering transparency about labor practices, consumers appreciate brands that are real about what they’re putting on the shelves.
Another way to foster trust is by encouraging user-generated content (UGC). Again, people trust people, and seeing real customers share their experiences with a product can be far more persuasive than a polished marketing pitch. A five-star review, a snapshot of someone wearing that jacket in real life, or a testimonial from a happy customer creates an authentic connection. Brands that actively encourage community engagement through UGC—whether it’s customer photos, reviews, or stories—build a sense of community and transparency that today’s shoppers demand.
Yes, “sustainability” has been in the retail lexicon for years now, but in 2025, it’s less of a trend and more of a dealbreaker for many consumers. Consumers are demanding greener products and practices, and many are even willing to pay extra for it; despite an overall trend towards more cautious spending, we found that nearly 60% of U.S. millennial consumers would pay a premium for a product if it was sustainably sourced.v
The other important factor is that today’s consumers are more eco-savvy than ever, bringing a sharper, more discerning eye to environmental claims. Most consumers are not only aware of the environmental impact of their purchases, but are actively seeking out brands that show a real commitment to sustainability. Unlike a few years ago, when a vague “eco-friendly” label might have been enough to impress, today’s buyers want specifics, and they’re ready to call out brands that exaggerate or mislead about their green credentials. If a company claims to be eco-friendly, they better have the data and the details to prove it.
If you’re entering 2025 with the mindset that social media is just for scrolling, think again. Social commerce and mobile apps are making it easier for people to buy straight from where they spend most of their time. Why stop scrolling to head to a website when you can buy directly from your Tik Tok feed?
This shift has fueled the massive growth of social commerce, where brands are now setting up shop directly within popular platforms. With just one tap, a customer is on their way to checkout without ever leaving the app, making it easier than ever to move from inspiration to purchase.
The rise in mobile app popularity coincides with the return to in-person shopping as an app can quickly become the ultimate in-store shopping companion. Instead of wandering aimlessly through aisles looking for a specific item, a quick check on the store’s app can reveal not only if the item is in stock but also exactly what aisle and shelf they can find it. This immediate access to information helps shoppers make informed decisions on the spot, adding a new layer of convenience and efficiency to the in-store experience.
AI has become a hot buzzword in tech over the past few years, but in retail, it’s not just a passing trend. AI is transforming the customer experience, allowing brands to craft tailored shopping journeys that feel intuitive, relevant, and personalized.
The days of one-size-fits-all recommendations are behind us; with AI, personalization has taken on a whole new meaning, extending across online and offline channels in ways that meet customers wherever they are. From custom product recommendations to in-store digital displays that recognize returning customers, AI enables brands to provide a cohesive, omnichannel shopping experience that feels uniquely designed for each individual.
Think about a time you searched for hiking boots online, only to see a recommendation for moisture-wicking socks the next day. That’s AI at work, analyzing past purchases, browsing habits, and even location to serve up suggestions that feel truly curated. AI uses vast amounts of data—shopping history, demographic information, social media engagement, and more—to get to know each customer’s preferences and needs. Instead of bombarding shoppers with random product suggestions, AI helps brands recommend items that make sense based on previous interests, making customers feel seen, understood, and valued.
In an omnichannel world, this personalization goes beyond online browsing to create seamless experiences across digital and physical touchpoints. If a customer buys a winter coat in-store, AI models can log that information and use it to offer relevant product suggestions—such as gloves or a scarf—on the brand’s mobile app or website the next time the customer logs in. These tailored experiences not only enhance convenience but also foster a sense of loyalty, as customers feel that the brand is catering to their individual tastes and preferences, wherever they choose to shop.
In physical stores, AI can power interactive displays that personalize the shopping experience further. For instance, when a customer logs into a store’s app or loyalty program upon arrival, AI can recognize them and pull up their shopping history to highlight specific items they’ve shown interest in before or suggest new products based on recent purchases. It can even guide them through the store with in-app notifications, directing them to the right section or recommending a limited-edition item available exclusively in-store.
With consumers gravitating back to stores, demanding more transparency, embracing sustainability, favoring social and mobile commerce, and expecting personalized experiences powered by AI, 2025 is shaping up to be a big year for retail innovation.
While we might not know every twist and turn of the future, one thing is clear: the best way to stay ahead is to keep your customers at the heart of everything you do. After all, they’re the real fortune-tellers, shaping the retail world with every click, swipe, and in-store visit.
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