5 Leading Retail Trends to Watch for in 2025
Retailers continue to face challenges moving into 2025 — from a high turnover of staff to disruptions in the supply chain. In addition to inflation, these factors have led to a sudden, transformational evolution of the sector. Businesses continue to shift their strategy towards diverse, changing customer needs, impacting how they present, sell, and deliver products. For those who dare to change, there are opportunities to adapt and shift retail business models to suit the customers’ needs and drive returns. By staying on top of these 5 leading retail trends in 2025 and implementing emerging solutions, businesses can thrive in today’s technology-driven commerce sector.
1. Flexible, diverse payment options
When it comes to the payment experience, shoppers have high expectations, looking for seamless, fast, and diverse options. With Gen Z making up over 40% of the global retail market, the drive for retailers to offer various payment options is more important than ever. According to Forbes, 48% of Gen Z shoppers expressed they would not follow through with a purchase if they couldn’t pay with their preferred payment method.
Buy now, pay later options — which businesses like Klarna have introduced — have also become a flexible new option for shoppers to complete transactions they otherwise would not. Some businesses even offer shoppers the option to check out items and try them out before finalizing a purchase. In-store payment options like mobile self-scanning devices, automated registers, and self-checkout technologies also streamline purchasing and take pressure off staff.
Peer-to-peer payment options, such as WeChat, Alipay, and Venmo, have transformed their business models to help streamline the checkout experience. Retailers are leveraging these platforms, empowering shoppers to pay in-store, online, or in-app in just a few steps. Payment preferences driven by Gen Z are also making physical cash a thing of the past, driving demand for retailers who support mobile wallets.
2. Physical stores featuring digital-first innovations
Customers increasingly expect digital options in-store to help ease and speed up shopping. Digital-first practices can add personal touches to the shopping experience, streamline choice and payment processes, and offer better knowledge about the use and sourcing of products.
Features like endless aisles allow retailers to expand their in-store inventory to their online catalog. Sustainable fashion store Reformation leverages feature screens in its brick-and-mortar stores, where shoppers can see the entire inventory, look at item details, and either add items to a cart to try on or even have sent to their homes. This optimizes stock management and minimizes waste for the company while streamlining the shopping experience.
Mobile apps used in-store help demonstrate to customers how to use or interact with a product without the need for personnel to show how it works. Other emerging technologies, like voice-activated shopping assistants, augmented reality-powered in-store navigation systems, and interactive displays, make for more immersive in-store experiences that attract shoppers to physical stores, offering unique ways to interact with the brand.
3. Social commerce expansion
Social commerce—shopping on social media platforms like Instagram or TikTok—is an emerging trend that is still on the rise. People can buy an item they are interested in directly through a social media platform without having to move through a third-party website. According to The Future of Commerce, global sales via social media platforms are estimated to reach roughly $2.9 trillion by the year 2026.
Research from HubSpot found that roughly one in five customers prefer to learn about new products that could suit them through the social media platforms they frequent. Live stream eCommerce is subsequently on the rise, with efforts to host live shopping events on social media platforms expanding. As social commerce works to closely mirror customer needs and wants, it has marked a revolutionary shift towards authenticity marketing.
Retailers can work to meet these trends by featuring shoppable video content on their social media platforms like Instagram and TikTok, considering expansion of their community-driven marketplaces and driving home peer-to-peer reviews. With the influencer-based marketing scene projected to continue, innovations like AI-generated influencers for niche marketing also promise enhanced brand following and revenue gains.
4. Demand for ethically and sustainably sourced products
Another important item on the list of retail trends in 2025 is that customers prioritize brands that clearly display their intent to pursue and champion sustainable initiatives. According to recent Statista research, a significant majority of consumers, exceeding 70 percent, express concern about sustainability when making purchasing decisions, particularly in the fashion industry. This indicates a strong demand for sustainable products in 2025, with many consumers willing to pay a premium for sustainable options.
Younger people in particular want to know they are purchasing from brands that are not just saying they want to do good but truly demonstrating their plans, plus past and current initiatives. By being more straightforward about missions to be environmentally conscious while maintaining cost consciousness in the face of global inflation, retailers can expand their following and strengthen loyalty among existing customers.
EY’s Future Consumer Index reports that 55 percent of global consumers express concerns about rising living costs, which will heavily impact the choices they make when purchasing. Despite these challenges, consumers remain optimistic, signaling a resilience in how people manage economic pressures. However, they are generally likely to cut back on costs, leaving products or services that they consider to be wasteful behind. To meet these demands, retailers can focus on offering high quality products that last and consider tapping into the booming used and secondhand market.
5. AI-driven technology solutions
AI is clearly one of the most visible retail trends in 2025. To continually track and manage global supply chains, in addition to online and physical stores, retailers are increasingly pressed to use AI-driven solutions that provide insight into product availability, production and shipping efficiency, and how and where they are being purchased and used. These solutions empower retailers to spot trends in buying patterns and take advantage of opportunities.
Further innovations expected to optimize the supply chain and drive retail success in 2025 include smart warehouses using IT sensors, autonomous delivery vehicles, and blockchain-enabled supply chains. From automated restocking to predictive demand planning, in addition to drones and advanced robotics to streamline delivery, innovative technologies are expected to further enhance supply chain management and streamline delivery.
Learn how you can stay on top of retail trends in 2025
Are you asking yourself how to adapt to retail trends in 2025 and beyond? Tired of being overwhelmed by the constantly changing commerce landscape and trying to stay afloat? ArcherPoint offers innovative, digital-first solutions to help you drive brand loyalty and come out on top. Contact ArcherPoint today to start discussing your options.