From AI to Sustainability | The retail trends you need to know about for 2025
Our key takeaways from the recent Forbes article - 4 Retail Trends That Will Reshape the Industry in 2025.
Written by
Gemma Moyce-Troth
Published
24 Mar 2025
Read Time
2 min read
The retail industry is poised for significant transformation in 2025, influenced by evolving consumer behaviours and technological advancements.
Catherine Erdly’s Forbes article, 4 Retail Trends That Will Reshape The Industry In 2025, highlights four pivotal trends set to redefine the sector this year.
Catherine is a UK-based small business retail expert, making her insights particularly valuable for independent businesses looking to navigate these shifts effectively.
These 4 key trends mirror the picture we’re already seeing in the UK market, and hearing about from our community of AIS Members, retailers, and exhibitors. We caught-up with our in-house team of INDX industry experts to hear their key takeaways:
1. Shifting Demographics
The consumer landscape is undergoing a demographic shift, with younger generations, particularly Millennials and Gen Z, becoming dominant purchasing forces.
These groups prioritise sustainability, authenticity, and personalised experiences, compelling retailers to adapt their strategies to meet these evolving expectations. As a result, brands must refine their messaging, products, and services to stay relevant to this values-driven consumer base.
“Today’s generation of customers expect transparency, purpose, and engagement, and they are looking for a shopping experience that’s goes way beyond the buying and selling of products. They have genuine interest in the story and values behind the brand/retailer and they will reward authentic human connection with brand loyalty. Retailers should focus on these key areas to ensure business growth and future-proof, long term brand loyalty.”
2. Considered Purchasing
Modern consumers are increasingly mindful of their purchasing decisions, favouring quality over quantity.
This shift towards considered purchasing emphasises ethical sourcing, durability, and brand values, prompting retailers to align their offer with these conscientious consumer preferences.
“This consumer trend offers a great opportunity for retailers to build deeper relationships with their customers by not only being open about their supply chain and the values of the brands they are stocking, but also by being upfront and transparent about their environmental and social policies as a business.
Shoppers of today want to feel good about their purchases and they will ultimately buy from brands that prioritise sustainability and ethical production. Retailers will need to align their own priorities to meet their customers’ demands and to future-proof their businesses."
3. Generative Artificial Intelligence
The integration of generative AI is revolutionising retail by enhancing customer experiences and optimising operational processes.
From offering personalised recommendations to efficient inventory management, AI-driven solutions are enabling retailers to cater to individual preferences and streamline processes.
AI is not just a trend—it’s becoming an essential tool for improving efficiency and driving customer engagement.
“One of the main benefits of AI is for elevating the online shopping experience and converting browsers to buyers. Retailers can use AI algorithms to analyse purchase history data and browsing behaviour to present customers with tailored product recommendations, and AI powered chatbots and virtual assistants are a great way of providing 24/7 customer support.
Plus, there are many increased efficiencies of using AI for dynamic pricing, forecasting demand, and optimising stock management. In store, AI can be used to optimise store layouts - by monitoring footfall, and analysing foot flow, and it can also be used to personalise marketing content.
In short, AI is no longer optional—it’s a necessary retail tool.”
4. A More Agile and Resilient Retail Sector
These preceding trends underscore the baseline necessity for retailers to remain agile and responsive to today’s evolving retail environment.
Embracing demographic shifts, supporting mindful consumption, and leveraging tech innovations are essential strategies for thriving through 2025 and beyond.
"In a nutshell, the future of retail belongs to those who adapt quickly. Flexibility in supply chains, digital transformation, and responsiveness to consumer needs will separate the winners from the rest. Retailers who stay ahead of these core trends will be better positioned for long-term success.”
Read the full article by Catherine Erdly on the Forbes website: https://www.forbes.com/sites/catherineerdly/2024/12/23/four-major--retail-trends-that-will-reshape-the-industry-in-2025/
