The top retail trends for 2025 success

The new year is just around the corner. And, as competition continues to intensify and consumers consistently seek value, you'll need to double down on ways to differentiate yourself to keep that competitive edge.

It's a tall order, but understanding what retail trends are set to shape 2025 will help. So, we’ve compiled a complete report on the top retail trends we expect to see next year. Let’s jump right in!

Retail industry trends 

From new technology to factors influencing shoppers' decision-making, here's our top seven consumer trends that we expect to change the retail sector next year.

Hybrid shopping

How do you like to shop for your favorite products? Are you the type of shopper who loves walking around your favorite retail stores for hours, touching the fabrics, trying on different looks in the fitting rooms, and enjoying the in-store experience? Or perhaps you prefer the convenience of searching and buying online, where just a few clicks bring your items to your doorstep. Maybe, you're somewhere in between, depending on the day, how you're feeling or what (or who) you're shopping for.

The thing is, there's no one right answer to these questions. Shopping habits are personal, nuanced, and, quite frankly, changing all the time. Sure, statistics will tell you that online shopping is rising, and the new hot thing. But does that mean that the need for brick and mortar locations is dead and gone? The answer is absolutely not. That's because global consumers want options. All of them. Which is why we expect that hybrid shopping will be one of the biggest trends of next year.

Put simply, hybrid shopping is the mix of traditional, in store shopping and online shopping. It's designed to give consumers a full rounded experience and the option to shop wherever they want, whenever they want.

According to a 2022 study carried out by Attentive, 89% of shoppers have confirmed that they already shop in a hybrid format at least some of the time. However, next year, we expect to see the line between the online and in-store world completely blurred.

Now, what will this look like in practice? Well, in IBMs report on hybrid shopping, they shared some brilliant examples, including conducting research on digital channels before buying in-store, buying online and picking up your items in store (often referred to as BOPIS), and in-store tech like mobile-assisted shopping in physical stores.

Frictionless delivery

According to PWC, 41% of consumers are willing to pay more for products if they can buy them more quickly and conveniently. Let's think about that for a moment. Almost half of shoppers are ready to open their wallets wider, not because the product is better, but because they can get it faster.

We're living in a world where people want things, and they want them now. This is especially true with younger shoppers, (Gen Zs specifically), with almost all of them saying that a brand offering same day delivery or next day delivery is extremely important in a 2024 report on customer insights. For many of them, waiting isn't just an inconvenience but a complete dealbreaker.

Speed, however, is just one element of frictionless delivery. A frictionless delivery experience goes beyond rapid fulfilment. Instead, it means allowing customers to have a completely stress-free experience from start to finish.

This means knowing where their orders are at all times with accurate tracking, having problem-free returns if the items they've bought weren't to their taste or didn't fit, having flexibility in delivery options (where items will be delivered and when), knowing all the latest payment trends to offer customers flexibility in purchasing, and, for our sustainably-conscious consumers, making sure the packaging is recycled and the shipping is carbon-neutral.

AI and hyper-personalization

Think about the closest people in your life. The people you trust implicitly. The ones that know all your secrets, your quirks, and all the things that make you, you. Chances are, most of these people know exactly what you want and need without you even having to ask, right?

Now imagine if a brand can do exactly the same thing.

Well, using artificial intelligence (AI), this level of understanding isn't just confined to your inner circle anymore, it's becoming a reality in today's retail landscape; it's helping brands understand what you buy, but also why you buy it. It does this by looking into habits, your customer preferences, even subtle patterns you make that you might not notice yourself.

This isn’t personalization as you’ve known it beforehand. It’s hyper-personalization. It’s not “Oh, you bought shoes, so here are some socks.” It’s knowing your size, your style, and even that you prefer sneakers in muted tones unless it’s for a special occasion, in which case you might go for something a bit more bold and brilliant. These are hyper-personalized recommendations.

Because, when retailers become a part of that inner circle, customers will stick around for a long time. You don't ditch a friend who just gets you - and that's exactly what brands need to do in 2025. They need to be the friend who always knows what you need, when you need it, in a way that feels thoughtful and seamless.

Now, the numbers speak for themselves on this one. Mckinsey and Co, for example, found that a staggering 71% of customers expect a personalized experience and 76% of those who do will even admit to getting frustrated or a little annoyed when it doesn't happen.

As well as customer expectations, the benefits for retail brands are also worth noting. The same study found that personalization can reduce customer acquisition costs by as much as 50% and increase ROI by 10-30% and better customer outcomes.

Jens Zwenger, Partner and Salesforce Consulting Leader, put it best in a recent interview with PWC. He said, "We are in a competitive environment in which companies are becoming increasingly digital and efficient. It’s no longer just about the competition between analogue and digital companies, but also about the different pace of digitalization within the companies themselves. The credo is: hypercompetition requires hyperpersonalization."

Retail media

30% of Americans now hear about new products through retail sites, eCommerce platforms, or those ads and sponsored posts we’re all forced to see online. That’s up from just 25% in 2020. That’s not a small bump. It’s a signal that how we discover products is changing in a massive way.

Now, this isn't slowing down either. In fact, the global retail media platform market size was estimated at USD 16.20 billion in 2023 and is expected to grow at a CAGR of 8.4% from 2024 to 2030.

If you’re a brand sitting on lots of first-party customer data, you’ve probably already realized something that the rest of the retail world is starting to catch on to: you can monetize your audience. Brands everywhere are beginning to leverage their digital platforms and data from their retail POS software for revenue generation. But make no mistake, the competition's fierce.

By doing this right, you'll be able to connect with customers at key moments in their buying journey. Whether it's through first-party data or third-party insights, brands can create highly personalized, ultra-relevant ads that aren’t just an afterthought, they’re precisely what shoppers want to see. When you nail that, you improve your conversion rates and boost customer experience.

Inspiration-led purchase journeys

Christmas is coming up, and if your TikTok feed (or Instagram Reels if that's more your thing) looks anything like ours at the moment, you’re probably drowning in a sea of holiday gift guides. The algorithm is on fire right now, feeding us everything from those perfect unique finds for the girls who have everything, to the latest must-have gadget, all endorsed by your favorite influencers.

One minute you’re casually scrolling giggling to yourself at funny skits or saving trending sounds or dances, and the next, your feed is packed with gift ideas that are so on point, it’s almost like these influencers have hacked your brain.

And this is what inspiration-led purchase journeys mean. People aren’t always online to buy. Sometimes, they’re just looking for ideas, something to spark that “I need this” moment. Younger generations, for example, say that they use the internet more to get inspired than to research products or brands. So, when influencers curate the perfect gift guides or create videos on their skincare hauls, they’re sparking ideas that resonate with their followers and planting the seed for a spontaneous purchase.

Now, influencers aren't the only way that you, as someone who works in the retail industry, can tap into this inspiration-driven shopping trend. You can do this by leveraging a variety of other physical and digital channels and strategies to spark that same sense of discovery and desire in your customers.

Maybe it’s through user-generated content, where your own customers become the stars, sharing their experiences with your products and creating organic buzz. Or, you could really focus on creating interactive content, like 'Find the perfect gift' or 'What’s my colour palette' or 'Best dupe for my favourite luxury brands' allow consumers to engage with your brand and discover products that feel like they were made just for them. If you want to reach those window shoppers in-store, you can amplify this sense of inspiration through immersive in-store experiences. Think of curated displays that tie together lifestyle concepts and give customers the tools to see how your products fit into their own lives.

Speaking up about sustainability

Consumers are watching. They’re listening. And they’re demanding change. 

It’s not enough to say “We care about the environment” and call it a day. Those words have lost their weight. Consumers want proof. They want to see real, measurable actions. They want to know how the products they buy are made, where they come from, and how they’ll impact the world when they’re done being used. The days of greenwashing are over. People are smart. They’re looking beyond the surface and demanding that brands hold themselves accountable.

People are deeply concerned about the planet. In fact, a global survey conducted this year made it clear that sustainability is top of mind with around 60% of nearly 19,000 consumers in 10 countries saying their concerns about climate change had only grown over the past two years.

Extreme weather events, like the record-breaking floods in Spain, or even closer to home,  such as Hurricane Helen, has been a personal wake-up call for many, driving home the urgency of taking action now.

While CEOs are laser-focused on disruptive technologies like AI, geopolitical turmoil, and growth challenges, they cannot afford to ignore this shift in consumer values. From retail supply chain and retail inventory management processes, to shipping, materials, product packaging, product design and end-of-life disposal, every aspect of a brand’s operation is under the microscope.

When looking into consumer expectations, we see a clear demand for brands to not only talk the talk but walk the walk. 76% of consumers say they intend to shop more with retailers that offer environmentally friendly products and services and 73% state they’d be willing to pay extra for environmentally friendly returns.

Social commerce

Our final trend on the list is social commerce which essentially means social media shopping, or selling your awesome products and services using your social media accounts like Instagram, TikTok, Facebook, and/or Pinterest. While we touched on this briefly in our inspiration-led purchasing decisions section, there's a lot more in store for this trend next year.

If you still think of social media as just a retail marketing channel, you’re missing the bigger picture. In 2025, platforms like TikTok Shop and Instagram Shopping aren’t just part of the retail landscape, they’re reshaping it entirely giving brands who use them a competitive advantage.

Gen Z shoppers, in particular, are flipping the script in comparison to other generations like baby boomers, Gen X and millennials. The average consumer in this younger generation is more likely to trust a live-streamer’s product review than a traditional advertisement. This means that if you’re not integrating social commerce into your brand’s strategy, you’re missing out on the very audience driving the future of retail.

When looking into the statistics, it is set to hit two trillion USD in the US by 2025 with some of the top retailers in the US, we're talking major brands like Gymshark, Zara and Walmart already having a strategy in place. And that’s just the States, it's also booming in other countries like China, the UK, Germany and more.

So, as a business owner, now's your chance. Create those digital stores that link up to your eCommerce sites, start making user shopping wishlists, or get involved in some live social shopping.