Read up on NRF’s annual forecast of retail trends for 2025.
We’re ringing in the new year with new retail predictions. In one of our most popular annual episodes, NRF Vice President of Education Strategy Susan Reda joins us to forecast 2025’s most impactful and exciting retail trends. From innovative AI agents to the rise of live shopping to the rebirth of bricks-and-mortar stores, the future of retail is bright.
You can’t have a conversation about the future of retail without talking about two important letters: AI. While artificial intelligence has been around for years, AI agents will be the real agent of change in 2025 and beyond.
“ AI agents, while not brand new, will really shape 2025 because of what they're able to do with the shopping experience,” Reda says. “If AI is the big raw brain power, then the developers are giving some parameters to the agents so they can take that data and actually make it make sense for those of us out there. Being able to use a chatbot that takes the data the retailer has and gives you back a response that's really defined for you is going to change the way we shop.”
Another trend that's alive and growing is live shopping experiences, where brands host online shopping events and encourage consumers to engage with the brand as they shop. Retailers like Nordstrom, Bloomingdale’s and QVC (the original live shopping innovator) have already seen success with the format.
“What brands continue to learn is that it’s an extension of social media and content strategy,” Reda says. “So if a brand can plan using social media and put out there that they’re going to host an event for spring fashion, they'll get consumers to join because it's part of the fun and energy of retail to be on the sidelines — or in this case, watching a screen — as that unfolds and be among the first to buy the latest, greatest outfit for spring.”
Reda believes bricks-and-mortar stores will never go away, but they will experience an exciting makeover with the growth of experiential shopping.
“For some, it could be that you're operating a store in one area of the mall, but you put a pop-up at the other end that's just trend-focused in some way. Pop-ups are really important. People love the energy of, ‘I gotta be there and buy it while it’s hot,’” Reda says. “You have to really understand what customers want. Is it a fun drink when they walk through the door? It could be anything, but it's based on who your customer is. It's tailoring that experience and keeping it fresh so that when they come they say, ‘Wow, I have to go back again!’”
While Gen Z is making waves in retail, Reda thinks the Alpha generation is really the one to watch.
“They all have their own way of thinking and about putting themselves together. They're not following the rules and brands love that,” Reda says. “ I think that the future is bright for retail because they are energized by product and they are creative. Yes, they've grown up as digital natives, but that's only a good thing for retail right now. It looks very positive going forward.”
Listen to the full episode to learn more about Reda’s predictions for 2025. Plus, see all 25 predictions for 2025 in this blog post.
(00:01:48) How Reda makes her predictions
How she gathers intel for months
Tapping more experts for their input
(00:03:14) How AI agents will shape 2025
AI chatbot responses defined for the consumer
Agents understanding what the customer wants
Is AI replacing marketers?
(00:08:51) The future of live shopping and social commerce
Leveraging it as an extension of social media and content strategy
Brands having strong success with live shopping
How live shopping works
Fusing entertainment and shopping
(00:13:08) The rebirth of retail stores
What we’re going to see in bricks-and-mortar stores
Why Gen Z is embracing retail stores
Creating flexible store formats and experiential retail
Pop-ups popping up everywhere
(00:17:17) The influence of Gen Z and Alphas
Why the Alpha generation is the one to watch
Why the future is bright for retail
Trends in health and wellness
Check out the recap of Retail’s Big Show in NYC
Become an NRF member and join the world’s largest retail trade association
Find more episodes at retailgetsreal.com