Clarkston’s team of retail consultants have highlighted the top retail industry trends that businesses should consider. See an excerpt of the trends report below, and read all 4 trends for 2025 by downloading the full report here.

2025 Retail Industry Trends

Moving into 2025, the retail industry continues to undergo rapid transformation, primarily driven by evolving customer demands, innovations to technology, and shifting dynamics in the market. With the lingering effects of the COVID pandemic reshaping shopping habits to this day, consumers continue to seek out retailers that offer value, convenience, and personalized, channel-less experiences.  

Four major trends that reflect consumer expectations are defining the retail landscape in 2025. From the surging popularity of AI technology to the increasing influence of value-conscious consumers, it’s clear that innovation and adaptability are key to maintaining a competitive edge. We are also seeing a resurgence in brick-and-mortar shopping, but with a deeper focus on ensuring a consistent experience across all channels. At the same time, embedded finance solutions are reshaping the traditional shopping experience by offering even more flexibility and convenience for consumers. As these trends continue to emerge, retailers will need to remain agile and responsive, adjusting strategies and offerings in real-time to meet the evolving needs of today’s consumers. 

Trend #1: Returning to Brick-and-Mortar While Maintaining the Channel-less Experience 

The pandemic dramatically reshaped the retail industry, catalyzing eCommerce adoption out of necessity. Now that consumers are no longer restricted to online-only shopping, many are choosing to return to brick-and-mortar. While online shopping offers undeniable convenience and ease, the tangible benefits of physical retail continue to draw shoppers back in. With 45% of shoppers still primarily shopping in-store and 53% intending to shop more in-store over the next year, it’s clear that the brick-and-mortar experience remains highly valued among consumers today. 

This renewed appeal stems from the unique advantages that a brick-and-mortar store offers. Over 50% of shoppers value the in-store experience for the ability to easily compare products, and 46% are drawn to the convenience and immediacy of purchase. Also, many consumers today express a desire for integrated digital and physical retail channels, and technology is playing a pivotal role in enhancing the channel-less experience in 2025. AI-powered innovations such as cashier-less checkouts and smart shelves are redefining what customers expect from their brick-and-mortar store. At the same time, eCommerce platforms can integrate AI to offer hyper-personalized experiences, recommendations and promotions. 

As the lines between eCommerce and physical retail continue to blur, retailers must remain versatile and deliver a cohesive experience regardless of where their customers choose to shop. By investing in both digital and in-store experiences, brands can offer the flexibility and ease modern consumers seek. Whether through personalized online recommendations or the satisfaction of in-store browsing, the retailers that thrive in 2025 will be those that provide value at every touchpoint, creating seamless purchase journeys that satisfy both digital natives and traditional shoppers alike. 

Trend #2: Meeting the Expectations of Value-Conscious Consumers 

Inflation continues to impact consumer purchasing decisions, and the effects will linger well into 2025. As cost of goods rises, consumers won’t accept an increase in price without a corresponding increase in quality. Shoppers today are aware of retailers cutting back on expenses with smaller packages or reduced product quality, so they are increasingly skeptical about where they choose to spend. As inflation continues to reshape purchasing behavior, value and quality are the new deal-breakers, and retailers must be ready to meet these evolving expectations. 

The purchasing power of younger generations has heavily impacted the demand for value-focused products. Millennial and Gen Z consumers are highly selective, only purchasing products they feel is worth their investment. Further, these consumer groups frequently surround themselves with influencers to guide their paths to purchase. Their decision to purchase or not can be easily swayed— over 80% of Gen Z shoppers are inclined to purchase after reading positive reviews, nearly 75% are likely to purchase products recommended by a friend, and almost 60% are motivated by endorsements from influencers. To attract and retain these value-conscious shoppers, retailers must meet their expectations for quality and ensure they clearly communicate that relationship between price and product value.  

Discount and private label retailers are also regaining popularity as a result of today’s value-conscious consumer. With competitive prices, typically 10-20% cheaper than traditional retailers, discounters capitalize on the growing demand for a price tag that truly reflects the value of the product. In fact, almost 70% of U.S consumers are more likely to buy from a private label now because they offer quality for a fair price. 

In this evolving retail landscape, brands that fail to prioritize value risk losing consumer loyalty. Retailers must be adaptable, willing to realign their offers with these expectations for price and quality to ensure they remain competitive in today’s value-conscious market. Continue reading by downloading the full report below.

Download the Full 2025 Retail Industry Trends Report Here

Read last year’s Retail Industry Trends Report here.

Contributions from Bella Gordon