6 game-changing retail trends expected to define 2025

AI, improved self-checkout systems, and tech-empowered store associates are all on the menu.

"You cannot rest… your competitors are going to continue to raise the bar," said Mary Dillion, president and CEO of Foot Locker, during her session at the National Retail Federation’s (NRF) Big Show in New York City.

This sentiment resonated throughout the event, underscoring the reality that complacency is not an option for retail leaders. From agentic AI to retail media networks (RMNs), retailers are eager to push the boundaries of what’s possible and redefine what retail looks and feels like for consumers.

To navigate the escalating economic and labor challenges anticipated to affect the market in 2025, driven by impending tariffs and potential recessions, retail leaders should consider investing in these six key growth drivers. By doing so, they can unlock new business opportunities, ensure efficient operations, and maximize return on investment from their technology initiatives.

1.    Agentic AI will shape the future of shopping

The future of AI is undoubtedly rooted in the agentic internet—an interconnected ecosystem of AI tools and agents that autonomously manage tasks such as finding, evaluating, purchasing, and maintaining products and services for consumers.

According to Salesforce.com, AI and agents drove a staggering $60 billion in online sales through personalized offerings and engagements during Cyber Week alone in 2024. As AI agents become seamlessly integrated into everyday activities, they will fundamentally change how consumers search and purchase products. Retailers will need to adapt their strategies, collaborate with ecosystem partners, embrace innovative marketing techniques, and optimize their supply chains to effectively prepare for this new era of consumer shopping.

2.    Retailers are in a race to adopt RMNs

RMNs are the next big wave in retail. These innovative digital advertising platforms, run by retailers, provide brands with the opportunity to advertise on the retailer’s websites, apps, and other digital properties. RMNs are rapidly gaining momentum; they are projected to account for $231 billion in digital marketing spending by 2030, according to Criteo. As economic pressures mount and profit margins thin, this new revenue channel will become increasingly vital for retailers striving to maintain profitability and sustain growth.

However, while the RMN ecosystem is expanding, only a few key players truly dominate the space. Remarkably, four in five brands advertise with six or fewer RMNs. New entrants must focus on offering unique value propositions and forging strong partnerships to break through the established hierarchy. This could mean that smaller media networks will merge or collaborate to create more comprehensive platforms, or that larger networks may acquire these smaller players to expand their reach and capabilities, ultimately offering their audiences more robust and integrated solutions. Retailers that neglect investment in RMNs risk lagging behind in an already oversaturated and fiercely competitive advertising market.

3.    There’s a growing appetite for custom order management systems

According to NIQ, 90% of women and 87% of men identify availability as a key factor before making online purchases. However, the rise of omnichannel shopping complicates demand prediction and forecasting for retailers, hindering their ability to accurately gauge order volume and fulfill their promises.

As the lines between in-store and digital shopping continue to blur, retailers with intricate operations and high demand volumes will increasingly consider custom solutions to ensure their long-term ability to deliver frictionless digital experiences and to scale quickly.

This growing omnichannel complexity necessitates the adoption of custom order management systems (OMS) that can seamlessly integrate and synchronize operations across various platforms. Custom OMS offer retailers the flexibility to tailor workflows, optimize order fulfillment, and enhance real-time visibility into inventory levels. By addressing the unique demands of each channel and ensuring a cohesive, efficient process, retailers can streamline online and in-store processes within a single system, ultimately allowing for a more seamless omnichannel customer experience. 

See how we did this for a prominent North American omnichannel retailer.

4.    Self-checkout solutions are not dead in the water

The convenience and efficiency of self-checkout solutions have made them a staple in retail stores across the country. However, the rise in retail fraud poses a significant challenge to their continued use. According to a 2024 report by the NRF, there was a staggering 93% increase in the average number of shoplifting incidents per year in 2023 compared to 2019.

This has caused major retailers like Dollar General and Five Below to reduce their investment in self-checkout. While some retailers may avoid self-checkout solutions altogether, those committed to maintaining a seamless checkout experience are increasingly leveraging computer vision and AI to combat fraud.

These AI-powered cameras can analyze video footage in real-time, allowing for immediate detection of suspicious activities. For example, they can identify behaviors such as not scanning an item, scanning the wrong barcode or SKU, or “fake-scanning” an item. When such anomalies are detected, instant alerts are sent to store associates through real-time processing, allowing for quick intervention.

For retailers still using self-checkout, investing in more sophisticated and efficient autonomous systems can significantly enhance security and elevate the customer experience.

5.    Retailers are turning to predictive analytics to prevent returns and enhance the post-purchase experience

According to the NRF, nearly 17%, or $890 billion, of sales in 2024 were returned. While reducing returns altogether is unrealistic, retailers will continually seek ways to reduce costs associated with returns and to make the post-purchase experience more seamless for consumers.

For example, Returnalyze, a retail analytics software company, uses predictive analytics and actionable recommendations to help retailers identify and minimize the factors driving returns. When retailers analyze returns data at a granular level, they can optimize product assortment, enhance operational efficiency, and boost customer engagement, with the ultimate goal of reducing returns before they occur.

In another approach, Narvar leverages real-time customer behavior and data to ensure a seamless, personalized shopping journey from order tracking to returns. By analyzing attributes like product item, loyalty program, geography, and spending behavior, Narvar enables retailers to reward their best customers, detect bad actors and drive better business outcomes based on the consumer and the reason for the return. 

The key takeaway is that retailers must view returns as an integral part of the purchasing process if they aim to significantly reduce their returns rate. Leveraging data-driven insights to identify such factors as frequently returned items and high-risk consumer profiles will be key to achieving that goal.

6.    Store associates are playing a new (arguably more important) role

With the growing understanding of how vital physical stores are—not just for brick-and-mortar operations, but also as the tangible embodiment of the brand—the role of the store associate has never been more critical. This transformation places increased demands on those associates, who must now take on more responsibilities. With the rise of services like curbside pickup, the role of the store associate is evolving, requiring them to adapt to new tasks and technologies.

Retailers like Tractor Supply Co are empowering employees to embrace this new role with AI-powered tools like Hey GURA, which combines generative AI with headsets to provide store employees immediate access to a wide range of information. The tool allows employees to quickly retrieve product specifications, offer recommendations, and locate items without using a computer terminal. Retailers looking to maintain efficient, customer-centric service should continue to invest in labor management tools to maintain optimal store productivity.

Finding the right partner for your retail digital transformation

It's clear that no retailer or technology partner can tackle all of these challenges alone. The complexity of the issues requires a collaborative approach that prioritizes bringing in the right partners at the right time. This means seamlessly integrating hyperscalers, point solutions, and advisory services into one cohesive strategy. Ultimately, a holistic strategy involving multiple players will be crucial in delivering value to retailers, driving sustainable business growth, and enhancing customer experience across the board.