18 Retail Industry Trends In 2025: Facts and Stats

Tips / 07.04.2025

As technology shifts and the digital world continues growing and innovation, retailers must adapt to the new technology trends in retail.

If you run a retail business that sells products or services to customers in-store or through online shopping, it’s essential to understand how consumer demand is changing and what trends in retail are expected to dominate.

This can help you gain a competitive edge, no matter whether you’re focused on growing physical locations or fall under the category of an online retailer.

In the following sections, we offer valuable insights for retail brands looking for new opportunities to outperform competitors. We look at the top retail trends, uncovering a number of emerging opportunities to increase sales and attract more consumers.

TABLE OF CONTENTS

Top retail trends 2025

Below, we share with you an overview of some of the most popular trends that are expected to dominate the scene in 2025 and potentially over the next couple of years.

Omnichannel retail engagement

Our list of top retail trends starts with omnichannel – a guaranteed way to deliver an integrated shopping experience across multiple channels and meet all customer expectations in 2025.

Businesses with omnichannel customer engagement strategies retain on average around 90% of their customers [1].
Companies with omnichannel engagement strategies witness a 91% higher increase in customer retention rates year-over-year. [2]
Purchase frequency is 250% higher with omnichannel strategies when compared to single channel. [3]

Omnichannel retail trends can be different based on the type of business you run, your consumers, your products, and other factors.

However, some of the most frequently implemented techniques include full integration between online and offline channels, consistent branding and messaging, unified customer data, personalised marketing and promotions, as well as advanced inventory management.

Return process incentives

Return process incentives represent the motivational components you offer in order to see customers returning to your company after they’ve sent back a product. This approach is an undoubted part of online retail trends and is extremely useful for customer engagement online.

Return process incentives create promising motifs for building brand loyalty by strengthening bonds with existing customers who might otherwise leave your brand. This strategy works via offers that are specifically created for the individual. It requires analysing various factors to understand the customer’s behaviour and provide an incentive for them to stay with you.

According to research, 92% of consumers state that they’re willing to repurchase from a retailer with a positive return experience. [4]

The incentives you could offer include discounts or coupons, bonus cash back, free shipping on exchanges, or no charge for returns.

Frictionless delivery

As technology is paving the way for a substantial climate change in the retail environment, shoppers no longer acknowledge next-day deliveries as a unique selling point of a company.

Instead, if you want to stay ahead, it’s time to consider same-day delivery or frictionless delivery.

Around 70% of consumers state the delivery speed is a vital factor when making purchase decisions. [5]
More than 20% of Gen Z customers expect same-day delivery, while around 60% of these shoppers are ready to pay extra for this extra. [6]

To achieve this level of sophistication in your deliveries, it’s key to implement strategic integrations between modern technologies and partnerships with logistic companies. This can help you establish a smooth flow from the point a consumer orders to the point where their product is delivered.

Automation plays a fundamental role in frictionless deliveries. For instance, drone deliveries allow shoppers to order online and receive their products over the next couple of hours. This approach not only offers unmatched convenience but also makes operations easier for you as a business.

You can eliminate human intervention, cut down delivery times, build up your reputation, and reduce expenses all at the same time.

Private Labels

When it comes to retail market trends, private labels are something we cannot ignore.

According to research [7], more than 60% of shoppers have invested in private-label products between the last quarter of 2023 and the first quarter of 2024.

Although not all of these purchases have taken place in the retail space, nearly half of them have been made for fashion items.

Private labels are among the current trends in the retail industry as they promise higher profit margins, help create brand differentiation and loyalty, contribute to trust among shoppers, and have promising pricing potential.

Easier checkout process

Studies reveal that a complex checkout process can significantly impact the customer’s desire to complete a purchase. This can potentially have a negative impact on your sales volumes and overall profits.

In fact, studies show that a complicated checkout process can discourage around 20% of shoppers [8] from completing a purchase.

One way to prevent this is to offer multiple payment options at checkout. In most cases, this includes contactless payment options, as they’re considered one of the most convenient and popular ways to pay today.

However, for those who prefer to use other alternatives to credit cards, other retail banking trends can be explored. These include buy now, pay later (BNPL) options – another essential-to-have checkout solution.

Originally gaining popularity online, BNPL is now a huge trend in physical stores too. For example, in the U.S., nearly 50% of shoppers have used BNPL [9] and many of them have a preference for this payment method.

RFID tags are also dominating the scenes, enabling merchandise tracking in order to simplify the checkout process for customers in the case of self-checkout.

This technology works by installing an RFID tag into each price tag in the store. As a result, shoppers aren’t required to scan barcodes at checkout. All they have to do is put their products into a bin, allowing a computer to scan each item via its RFID tag.

Personalised experiences

Among other retail customer experience trends, personalisation is gradually taking over, with a few privacy concerns to keep in mind as a business owner.

Expectations are that hyper-personalised offers will replace store-wide sales events by 2027 [10]. And by hyper-personalisation, we don’t just mean special deals and personalised recommendations.

Hyper-personalisation represents a completely tailored shopping experience, from start to finish. This requires a complete and in-depth understanding of consumer preferences and behaviour.

You can think of personalised experiences and hyper-personalisation as a step towards the future, where AI will be doing all the shopping on behalf of Gen Zers and millennials.

Subscription-based services

Subscription-based services have also become a top retail trend in 2025.

They guarantee regular and consistent revenue streams for retail businesses, help create customer loyalty, and are ideal for offering personalisation across different stages of the buyer lifecycle.

On average, adults subscribe to four different subscription services. [11]
Subscription services have a 60-70% success rate in keeping customers after the first year. [11]
More than 40% of consumers admit they intend to increase their spending on subscription services in the next year. [11]

Based on this approach, retailers provide regular deliveries for products like groceries, beauty, and household must-haves.

Other forms of subscription-based services include curated subscription boxes that are tailored to the tastes and preferences of the shopper. In addition, membership programs are on the rise, offering exclusive benefits and discounts for members.

“Quiet luxury”

The luxury market has always been appealing, but today, more and more shoppers are looking for items that show sophistication via design, material, attention to detail, and other factors.

In 2023, this was clearly demonstrated by the fact that quiet luxury companies outperformed their loud competitors by 23% points [12].

The most interesting part about quiet luxury is that it isn’t related to luxury brands. Instead, it represents a trend where the essence of individual products is valued more than branding.

When it comes to quiet luxury, the appeal of the offer is not characterised by flashy logos. Instead, what appeals to the audience is craftsmanship, the detailed designs and manufacturing principles, and more.

It requires companies to establish intimate and custom-based interactions with shoppers. This helps create a feeling of exclusivity, making each purchase feel special and unique. Quiet luxury often overlaps with sustainability and ethical practices, which brings us to the next big retail trend.

Sustainability and ethical business practices

Consumers are slowly becoming more and more conscious of the impact the retail world has on the environment.

Products marketed as sustainable grew 2.7x faster than others in 2024 [13].
62% of consumers say they often browse for sustainable products [13].
55% of shoppers would prefer paying more to acquire eco-friendly products as opposed to environmentally damaging ones [13].

Naturally, this sets the scene for preferences towards ethical and green-oriented brands that pay close attention to their influence on the planet.

A growing percentage of shoppers are now showing preferences towards companies that demonstrate sustainability in their operations, including supply chain practices, packaging, deliveries, and more.

Resale commerce

Resale commerce or recommerce is a segment in the retail industry concentrated on the purchasing and selling of pre-owned, used, or second-hand products. With a growing resale market, resale commerce is another retail trend you need to consider in 2025.

More than 50% of shoppers aged between 18 and 24 [14] have bought clothes from online second hand stores. While these purchases can be personal, they can also be as part of gift-shopping.

In fact, more than 51% of adults admit they plan to purchase resold clothing as holiday gifts [14].

This shift is partially a result of the rising interest in sustainability and ethical practices. Another explanation is that more and more consumers are searching for ways to introduce minimalism into their lives via decluttering. This creates opportunities for reselling items, contributing to this trend.

Social commerce

Social commerce or creator commerce relies on social media channels to position products and services and sell them to the right audience. It requires the creation of a seamless shopping experience across social networks, meaning integrations between platforms, user-generated content, influencer marketing, community engagement, and others.

Social media platforms like Instagram, Facebook, YouTube, and Twitter have gradually turned into major parts of everyday life.

Here are a few interesting social commerce stats worth knowing about:

By 2030, social commerce revenue is forecasted to reach $6.2 trillion [15].
Millennials are expected to remain the most active social commerce consumer, representing 23% of all purchases by 2025 [15].
Consumer spending on TikTok is more than $2.5 billion [15].

Businesses that successfully create a smooth shift from product discovery to purchase can substantially stand out from the crowd.

Mobile commerce

On the other hand, mobile commerce, also referred to as m-commerce, relies on mobile devices like smartphones and tablets for purchases.

In today’s retail realm, more and more shoppers are taking advantage of the convenience of mobile devices for shopping. Whether it’s browsing for products, shopping online, banking, or paying bills, these devices are a vital part of our daily routine.

Mobile commerce is expected to reach sales of $2.52 trillion in 2024 [16].
Between 2023 and 2024, mobile commerce is forecasted to grow by 16.3% [16].
Consumers use mobile shopping apps 48% more than other types of apps [17].

Retailers are recognising the potential of this avenue. This calls for innovation around mobile-optimised websites, mobile apps dedicated to online shopping, mobile payments, and more.

Voice commerce

Although social and mobile commerce are big in retail in 2025, so is voice commerce.

While the market for voice-assisted shopping was only $4.6 billion in 2021, it grew to $19.4 billion in 2023 [18]. According to forecasts, it’s expected to grow by 54% in 2024 [18].

Virtual assistants and smart speakers are pushing towards this growing trend, where voice-activated technologies are completely changing the way shoppers communicate with brands.

Voice commerce helps consumers enjoy a hands-free experience that is not only convenient but also personalised and incredibly easy.

For example, buyers can search for products, receive product recommendations, and complete purchases simply by relying on voice commands. Google Assistant’s Voice-Driven Product Search also enables individuals to take advantage of voice-activated product search – another factor contributing to the rise of voice commerce.

AR and VR in retail

Virtual Reality and Augmented Reality are expected to be the next big trends in the retail landscape, and we’re already witnessing their potential in 2025.

61% of shoppers prefer retailers with AR experience [19].
71% admit they would shop more often if they used AR [19].
58% of consumers who’ve used AR when shopping state it improved their overall experience [19].

Particularly attractive to younger shoppers, AR and VR are actively being used to design immersive and functional methods to position products and services in front of potential buyers. These technologies help create the foundations of experiential retail and are perfect for informing customers about the value of your offers and your brand in general, as well as demonstrating how your products can be useful for them.

The beauty of AR and VR is that they can help shoppers interact with your products in unimaginable ways.

Phygital retail

Based on a survey conducted by Globenewswire, nearly all shoppers review products online before making a purchase. The review process can take place across different social media platforms, search engines, or the brand’s website.

Among other key insights, the study shows that more than half of consumers in the retail sector would rather spend more on products that are positively reviewed than risk spending on items with negative reviews.This only proves how important it is for companies to take advantage of phygital retail as a way to grow their business to new heights.

Globally, physical retail is expected to reach $950.18 billion by 2027 [20], showing a 16.1% CAGR growth from 2022.

Phygital retail or hybrid shopping is gaining traction putting it on the list of the latest trends in retail. Its popularity is mainly due to the distinctions between younger generations and older generations, or Gen Z and Boomers.

For example, a major part of Boomers’ shopping preferences are centred around classic in-store experiences. On the other hand, Gen Z shoppers represent the digital natives that seek the convenience of online shopping. To find the perfect balance, retailers are gradually starting to take advantage of phygital retail – a merger between physical and digital channels.

This approach enables businesses to use advanced systems to manage inventory, customer relationship management, and even retail supply chains. Think of enabling shoppers to search for products online, then moving to a physical store to receive personalised recommendations thanks to advanced customer data collection and analysis.

AI and ML

Artificial Intelligence and machine learning are other retail trends that shouldn’t be neglected in 2025.

Nearly 90% of retailers have already used AI technology [21].

At the same time, 60% of retail businesses are planning to increase their AI investments [22].

Brands are actively embracing the power of AI to personalise the shopping experience more than ever. This is possible thanks to machine learning algorithms that are capable of processing and analysing large volumes of customer data across different channels, including eCommerce sites, social media platforms, and multiple marketing channels.

This helps retail companies get to know their consumers better, allowing room for predictions and recommendations based on personal preferences.

Security and data privacy

The incredible volumes of digital transactions taking place in the retail space are naturally appealing to fraudsters and hackers interested in consumer-sensitive data.

As a result, security and data privacy are on the rise as one of the top retail trends in 2025.

Studies show that a shocking 50% of retailers have experienced security breaches in the past year [23].

They provide customers with peace of mind knowing that their information is fully protected at all times, preventing risks of data theft and unauthorised payments.

Blockchain technology

Although still in its infant phase, blockchain technology offers promising potential for multiple industries, retail included.

While the global blockchain in retail market was valued at $126.8 million in 2020, it’s forecasted to reach $2,082.8 million in 2028 [24].

Retail brands are starting to test different strategies on the basis of blockchain technology, mostly due to its powerful security features and decentralised nature.

For instance, some of the areas where experiments are performed include traceability, payment streamlining, smart contracts, authenticating products, as well as supply chain transparency.

Exceeding expectations through technology and innovation

By exploring and evaluating the top retail trends in 2025, one thing becomes clear – technology and innovation as vital for meeting consumer expectations.

The future of retail is expected to welcome new and more advanced solutions created as a result of the evolution of technology.

With shoppers actively searching for convenience and speed in their shopping, retail brands must quickly adapt and provide a seamless journey across all used channels.

Frequently Asked Questions

What is driving omnichannel retailing as a top trend in 2025?

Customers are increasingly demanding integrated shopping experiences, calling for an omnichannel approach to retailing. Shoppers expect to quickly and effortlessly move across offline and online channels without losing data or disrupting their shopping journey.

How are retailers utilising AI to improve customer experience?

Retailers are actively experimenting with AI-powered recommendations, chatbots and virtual assistants, inventory optimization and management, pricing, and more.

How is AR changing the way we think about retail?

Augmented reality is reshaping the retail experience by offering immersive and interactive ways to communicate with brands and experience products. For instance, consumers can visualise how clothes will look on them, how furniture will fit into their homes, and more without physical contact with the product.