According to experts, 2025 will be when physical stores return to the center of retailing. It will also be a year when the concept of value will extend beyond affordability to include enhanced shopping experiences and consumer-centric innovation.
“In 2025, we anticipate that physical stores will be a focal point for the retail industry,” Elizabeth Lafontaine, director of research at Placer.ai, which closely monitors retail industry trends, told The Epoch Times.
“Many retailers have already announced plans to expand store fleets this upcoming year, and even retailers that tighten their footprint will still transform and reinvigorate remaining stores. Successful retailers must find the right combination of store elements, experiences, and formats that fit the needs of today’s dynamic shopper.”
With the return of the traditional store at the center of retailing, Jennifer Hahn, founder and CEO of J Recruiting Services, sees strong store leadership as an essential feature of retailing in the new year.
“With the increased tech and inventory-counting robots, some thought that in-person retail leaders would be less important,” she told The Epoch Times via email.
“We couldn’t see anything less true. Great store operations leaders are more crucial than ever. Store leadership will be focused on those who can lead, develop, delegate, and train in the ever-changing sales floor environment. Running a store in 2025 is much different than it was in 2019. The industry will seek those who can successfully evolve and navigate change.”
Meanwhile, Lafontaine sees value as another driver of retailing in the new year.
“In 2025, though, retailers must focus on expanding the definition of value beyond low prices to retain shoppers of all income brackets and prepare for a potential return to the middle,” she said.
For Arvind Rongala, CEO of Edstellar and an expert in business and technology, the value offered to customers will include personalization powered by technology.
“Retailers will use AI more and more to provide individualized consumer experiences,” he told The Epoch Times in an email. “Data will boost sales and consumer loyalty through dynamic pricing and tailored marketing. For instance, Amazon’s AI-powered product suggestions will motivate smaller merchants to provide comparable, highly customized shopping experiences.”
Rongala said he believes hybrid retail formats will prosper.
“Anticipate the transformation of physical stores into centers for experiences,” he said. “Consumers will expect omnichannel, interactive, and value-driven purchasing experiences.”
E-commerce expert Brandon Hartman is on the same page, providing further insight on how artificial intelligence (AI) will engage customers and enhance shopping experiences.
“AI has enabled businesses to offer realistic and engaging shopping experiences that extend beyond merely selling products,” he told The Epoch Times in an email.
“Things like interactive showrooms have been a game changer. In 2025, more and more retailers will design their stores to include interactive elements where customers can try out products in real-time and real-world settings. For instance, salons can use virtual reality to let customers try out hair colors.”
For George Wakely of ShipStation, adoption and adaptation to the new customer-centric retail landscape are key to success in 2025.
“Businesses that adapt quickly to market changes and consumer feedback will have an advantage, especially as operational agility and real-time analytics allow for precise alignment with shifting demand,” he told The Epoch Times via email. “This approach will be critical for maintaining customer satisfaction and loyalty in the competitive landscape.”
Still, if 2024 is any guide to 2025, the retailing industry will face several challenges, from elevated inflation to soaring consumer debt and growing competition.
These challenges have turned the retail sector into a tale of two stories. One is about retailers thriving by successfully addressing these challenges, and another is a tale of striving retailers that have yet to address these challenges. Walmart, Costco Wholesale Corp., and TJX Companies belong in the first category, while Target, BestBuy, and Five Below belong in the second category.
Overall, Hahn says 2025 will be an exciting year for retailers that have used the challenges over the past few years to refocus and think differently.
“Leaders like Walmart, Costco, Aldi, and Sprouts are expanding their store footprints and heavily investing in technology to enhance the online shopping experience,” she said.
“From Walmart’s advancements in delivery and click-and-collect services to Costco’s focus on omnichannel growth, these companies are leveraging tech to meet the evolving customer where they’re at.”
