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Walt Whitman is credited with suggesting, “The future is no more uncertain than the present.” This has never been more apropos as we embark on 2025 and begin to see the future unfold before our eyes.
From my perspective, the following factors are among the most significant on the horizon for the coming year. You may notice that this looks strikingly similar to prior predictions – and that is simply to say that market innovation continues, and these themes are accelerating and evolving.
No list of predictions is complete without reference to artificial intelligence (AI). Clearly the expansion of AI is progressing at warp speed. Most interesting to me is the adoption rate of AI and how its presence has permeated so many aspects across the retail supply chain. My watchwords for 2025 regarding AI are prudent and diligent. Underlying data must be solid, it is imperative that consumer wariness must be top of mind, and potential liabilities associated with AI-generated information should be taken into consideration.
The next factor highlights the fact that today’s shopper has countless shopping options at their disposal. From brick-and-mortar around the corner to digital shopping available at their fingertips 24/7, garnering attention and a fair share of spending is a daunting challenge for any retailer. Case in point: research conducted several years ago by The Hershey Company (https://www.retaildive.com/spons/the-shopper-value-equation-how-understanding-it-unlocks-retail-growth/554461/) revealed that shoppers visit 17 retailers (either physically or online) each month. If retailers don’t engage across the full spectrum of pertinent platforms or cannot effectively incorporate technology to offer shoppers seamlessly integrated shopping experiences, they will fall behind their competitors.
Third, hyper-personalization. This has become a minimum ante for all retailers, but the next step is anticipating shopper needs and meeting them when and where they are ready to transact. One size-fits-all promotions have become far less effective and dynamic pricing schemes are on the rise. Truly understanding individual shopper journeys while offering unique product recommendations and relevant value will be differentiators in the year ahead.
Fourth, many may still have a narrow view of social media — treating it as a mere marketing channel. It’s time to take notice of platforms like Instagram and TikTok that are reshaping retail shopping options. From product reviews and demos to transactions, the reality of social commerce dare not be overlooked.
Finally, while consumers’ awareness and interest in a brand’s social responsibility and sustainability practices are not new, 2025 marks the year when it becomes a core business driver rather than a nice-to-have initiative. Innovative retailers will embrace and activate campaigns, make product decisions, and offer consumers brands and experiences that reflect their shoppers’ values and beliefs.
My list of transformative drivers could certainly include a half dozen or more ideas that will continue to shape the retail landscape and shopper attitudes and actions. I’m eager to see what 2025 has in store!
HRG improves results across the retail supply chain by addressing dynamic needs such as data & analysis, brand development, fixture coordination & management, shopper experience, and retail communications. Dave Wendland, vice president strategic relations and member of the HRG owner group, participates in strategic planning, business development, product innovation, and marketing communications activities for the company.
