Retail Trends for 2025
Every retail professional knows that the industry is in constant flux, and retail businesses—large and small alike—know how important it is to adapt to changes in consumer behavior and expectations, new technologies, and market trends. In recent years, especially, the retail world has undergone some major shifts, with a worrying hit caused by the COVID-19 pandemic and the continued growth of online shopping.
Despite these hurdles, however, brick-and-mortar retail remains strong—still accounting for 85% of U.S. retail sales—and there are more reasons than ever for shoppers to head back to stores. Here are the five leading retail trends for 2025 that give us a glimpse in the future of retail and in-person shopping.
5 Retail Trends and Industry Changes in 2025
Experiential Retail
In order to compete with the world of online shopping, retailers have to create more reasons for customers to visit them in person. That’s where experiential shopping comes in. This trend is about more than just selling products, it’s about creating an immersive experience for customers that transports them into the world of your brand or invites them to engage with your business in a community-focused way.
In practice, experiential shopping can be many things, including thoughtful décor and specific offerings, like being welcomed with a coffee or tea, or a monthly event that brings community members together in your space. For example, a kitchen store could host a cooking class or a bookstore could host a regular book club. There’s lots of room for creativity when it comes to creating a unique retail experience.
Sustainable Products and Practices
Consumers are increasingly interested in buying sustainable products and lowering their own environmental footprint. In fact, 66% of shoppers said they are looking to buy from eco-friendly brands, and more than half are willing to pay a premium for more sustainable products.
This trend continues in 2025, and small and medium retailers can take it in stride by increasing transparency around the products they sell (i.e. what they are made from, how they are made, and where they come from) as well as sustainable in-store practices (like cutting back on paper by using digital receipts, using energy efficient systems, and minimizing packaging use). Generally, customers will feel more connected to a brand or store whose values align with theirs.
Social Media for Retail Stores
Though not new, the trend of leveraging social media for marketing continues to be important for retailers in 2025. For small businesses in particular, generating social media buzz and encouraging engagement can be the difference between a couple sales a day and a lineup out the door.
Maximizing your social media impact can be achieved in different ways, like working with local influencers to share your brand, or offering customers an Instagrammable experience, like a graphic backdrop or bold interior design. On another level, we are also expecting the trend of social commerce (i.e. buying products directly through social media) to start taking off in the U.S., following its huge popularity in Asia. Reports show that U.S. retail social commerce sales will exceed $100 billion in 2025.
Loyalty Programs
Brick and mortar retailers can continue to differentiate themselves in 2025 by going above and beyond for their customers. Loyalty rewards programs are a highly effective way to build relationships with consumers and keep them coming back. Notably, research has found that a top performing loyalty program can increase revenue generated by participants by up to 25%. Stamp cards are an obvious route, however the reward format of “buy 10 and get 1 free” doesn’t work in all contexts.
Fortunately, integrated POS systems like SumUp Connect can give you more options when it comes to launching a loyalty reward programs. For instance, your business can pursue a points-based reward system or share exclusive promotions and events with your most loyal customers, which will keep them coming back and get them to spread the word about your business.
AI Upskilling
While small retailers may feel they don’t have the resources to truly capitalize on AI technology, it’s not only big brands that can benefit from it. Behind the scenes, small- and medium-sized retailers can boost the efficiency of their operations by embracing AI and ensuring that staff know how to use certain tools. For example, AI can be used to automate the generation of sales reports, to streamline inventory, and for handling customer service inquiries. In short, AI tools can support retail workers and deliver significant benefits if used properly, so it’s important that retailers upskill their teams.
The Future of Retail
The state of retail in 2025 shows changes in the retail industry that really look off in 2020 are still going strong, with a particular emphasis on the customer experience and customer values. Technologies like social media, AI, and integrated POS systems also factor in, empowering retailers to enhance both their customer offerings, through loyalty programs, and their overall success.
