The Clarkston Consulting retail team attended NRF 2025: Retail’s Big Show in New York City this week, joining retail leaders and innovators from around the world to discuss the latest and greatest in the retail industry. With over 175 sessions, 1,000 exhibitors, 40,000 attendees, and 5,000 brands, NRF provided a unique look into the future of retail and what will ultimately be the “game changers” moving into 2025 and beyond.

Below, we outline some of our key takeaways from NRF 2025:

AI-Enabled Innovation + Beyond

As customers grow to expect quicker service, hyper-personalization, and more sustainable practices, the use of AI continues to grow in importance. AI is being used to optimize everything from product discovery to inventory management to returns management, transforming how retailers interact with customers at every point in their shopping journey. AI-based merchandising tools are enabling retailers to get better throughout the season – whether that is bringing additional intelligence to assortment plans pre-season, improving replenishment in-season, or optimization transfers and markdowns at the end of season.

Further, while Generative AI (GenAI) is a hot topic, it’s clear that combining AI with other advanced technologies is pushing the boundaries of what’s possible in retail. Hyper-personalization efforts are being powered by AI alongside other tools, allowing retailers to craft experiences that are deeply tailored to individual consumers. This goes beyond basic recommendations to create highly customized shopping journeys.

Smarter Supply Chains

Supply chain innovation is a central focus for retailers looking to boost operational efficiency. There’s increasing recognition that supply chain disruptions are inevitable, and businesses need to adopt a mindset of embracing uncertainty. Retailers should focus on building long-term strategies, developing playbooks for managing disruptions, and enhancing collaboration, transparency, and trust with their partners. The goal is to stay ahead of the competition by handling disruptions more effectively.

Meeting Customer Needs

Retailers are increasingly focused on personalization, delivering value, and providing seamless experiences across physical and digital channels. Recognizing generational differences in purchasing behaviors is also crucial—while Gen Z and Gen Alpha have different expectations, both groups prioritize speed, convenience, and meaningful engagements. Retailers are responding by meeting shoppers where they are, including in the growing grocery ecommerce space. Food spending is shifting toward more convenience-driven options like ecommerce, drive-throughs, click-and-collect, and discount chains, which are reshaping how retailers serve their customers.

 Supply Chain Pressures & Mindset Shifts

The ongoing uncertainty in global supply chains is pushing retailers to rethink their strategies – as Amir Thakurta from Havertys stated, “uncertainties are going to be certain.” However, the key to navigating this inevitable uncertainty successfully lies in preparedness. As Macy’s Shaun Barbour emphasized, collaboration, visibility, and trust are essential; while it’s easy to focus on what’s right in front of you, it’s essential to think further ahead. It’s important for companies to build strong relationships and move away from transactional interactions with their partners to foster long-term collaboration that can weather disruptions.

 AI Evolution: From Automation to Decision-Making

AI’s role in retail is evolving from merely automating tasks like notetaking to actively assisting in decision-making. Advanced AI tools allow teams to ask questions, analyze data, and derive insights without the time-consuming process of manual analysis. This shift allows retailers to focus on strategic decisions rather than just data gathering. However, the adoption of AI in the workplace is not without challenges. Companies must address concerns around data trust – even taking measures to invest early in cybersecurity – and understand the importance of quality, unified data.

 Empowering Retail Teams During Peak Seasons

Improving the experience for frontline associates continues to be an opportunity for retailers. This challenge is at its toughest during peak season.  During a session with  Michaels Stores, we heard key messaging around how to empower your retail teams to succeed during this time:

1. Empower Frontline Teams: Ensure employees understand the mission and the “why” behind their work, creating a sense of purpose and direction.
2. Leverage Real-Time Data: Use tools like surveys and polls to enable quicker, smarter decision-making, ensuring teams can adapt to changing circumstances on the fly.
3. Foster Collaboration: Encourage tailored communication, peer-to-peer learning, and celebrate wins to keep teams motivated, connected, and focused on shared goals.

With the close of NRF 2025, one thing is clear – the future of retail is one being shaped by innovation, adaptability, and a relentless focus on the customer experience. From AI-powered decision-making to smarter supply chains, retailers are navigating themselves through yet another era of transformation. At Clarkston, we’re committed to helping retailers embrace this era of transformation to drive success in 2025 and beyond. To chat more about these key themes from NRF 2025 or other emerging trends in the retail space, reach out to our team today.