NEW YORK — The retail industry is moving away from matching goods to the masses to delivering hyper-personalized, omnichannel experiences. This is according to Deloitte’s 2025 Retail Industry Outlook, released Wednesday.
This year’s Retail Outlook includes a brief summary of the U.S. economic forecast from Deloitte economists and notes that a strong economy should aid retail sales, barring significant changes:
- Deloitte expects consumer spending to grow at a healthy pace of 3.1% in 2025.
- Spending growth on durable goods should remain high at 4.7% in 2025 before easing over the next few years.
"Retail sales are expected to continue to benefit from a growing economy. The United States has outpaced its advanced-economy peers in its post-pandemic recovery. We expect this to continue, with real GDP rising by 2.8% in 2024 and by 2.4% in 2025, according to our baseline forecasts. Growth is expected to moderate a bit in 2026 but is likely to hover around 2% until 2029. As in recent years, consumers will likely continue to be a key driver of growth momentum," said Deloitte’s economist, Akrur Barua.
In addition, the Outlook identifies three key trends that retailers plan to address this year:
- Appealing to the value-seeking consumer. Nearly 6 in 10 retail executives expect consumers to value price over loyalty in the year ahead. The Outlook details how retailers plan to attract value-seeking consumers through loyalty programs, engaging experiences, driving convenience, and discounts and promotions.
- Focusing on omnichannel opportunities. The top priority for 2025 cited by retail executives surveyed is accelerating digital transformation/omnichannel capabilities. 7 in 10 expect to have AI in place within the year to personalize experiences, and 8 in 10 expect an increase in social commerce.
- Investing in efficiency. Retail executives plan to make moderate-to-major investments to optimize costs, rather than cut them: Two-thirds plan to focus on workforce hiring, retention and future-readiness. In addition, 9 in 10 plan to modernize their supply chains; more than half plan to invest in M&A (up from 30% in 2024); and three-quarters plan to invest in alternative revenue streams.
Deloitte’s Retail Outlook is based on a survey of 75 retail industry executives, of which 80% were from companies with annual revenue of $10 billion or more, interviews with industry experts, and a financial analysis.
