2025 Retail Trends Forecast: What's to Come

ABOVE PHOTO: Wu Jianquan, Shenzhen, China

THE NEW YEAR brings new resolutions, new perspectives – even new memes (looking at you, TikTok). But there are also plenty of new and emerging retail trends to keep on the radar as we get underway with 2025.

As global online retail sales continue to climb to new heights – they’re expected to reach $6.8 trillion by 2028, per a 2024 report from research and advisory company Forrester – retailers are still seeking to create in-store experiences that offer more than just a transactional opportunity. And it makes sense, given a report late last year from credit card company Visa, which noted total retail spend in U.S. stores grew at a rate of 4.1 percent compared to 2023.

Athletic footwear retailer On is a prime example of an emerging brand expanding its footprint, having opened numerous locations internationally in the past year, including its latest store in Chicago (shown). Photography: Courtesy of On

“We have been able to balance magic and logic when it comes to experiential retail,” says Giovanni Zaccariello, Senior VP, Global Visual Experience at Coach. “For each creative project, we look at experience per square foot coupled with sales per square foot to help push innovation every single time. At the end of the day, if the creative does not feel uncomfortable, the idea is not big enough.”

Live music venue, MUUUR in Chongqing, China, showcases the appeal of dynamic and memorable experiences consumers will be looking for in the year to come. Photography: Wu Jianquan, Shenzhen, China

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Retailers, such as Paris-based Louis Vuitton, are doing just that. The French fashion house recently opened a temporary New York store across the street from its Fifth Avenue flagship, undergoing a massive renovation. The five-story “pop-up” features a cafe with a curated book selection, a chocolate shop, exclusive merchandise and impressive, more than 52-foot art installations of its iconic trunks.

Photography: Courtesy of Louis Vuitton

Also top of mind for 2025: thinking of in-person and online shopping experiences as completely separate journeys. Retailers are discovering the importance of a seamless omnichannel experience, creating synergies between brick-and-mortar and online touchpoints. “This consistency instills confidence, demonstrates the brand’s unique market position, and creates emotional bonds with their customers,” says Catherine Keywan, Senior Interior Designer at Boston-based design agency Bergmeyer. “For instance, if [a brand’s] customers are accustomed to tailored algorithmic preferences online, they could benefit from personable brand ambassadors and curated product displays in-store to simplify their decision-making. Similarly, if peer endorsement is valued by their customers online, incorporating product reviews into store displays can mimic this community support. By understanding their unique customer needs and shopping expectations, brands can effectively bridge the gap between digital convenience and in-person experiences.”

During a year when artificial intelligence (AI) dominated the news cycle, retailers have an opportunity to think even bigger in terms of what it can do. This means the future isn’t just about AI managing inventory or giving more personalized recommendations. “It’s about teaching machines to understand cultural resonance,” says Samar Younes, Chief Imagination Officer, Founder of SAMARITUAL. “We’re entering an era where computational systems can help us craft retail environments that function as cultural time capsules, where shopping becomes less about transaction and more about transmission of stories and traditions.

“The most innovative retailers will use AI not just as a tool for efficiency, but as a collaborator in creating spaces that respond to collective memory and cultural context,” Younes says. “Think less ‘smart store’ and more ‘cultural sanctuary,’ where technology helps weave together commerce, community and consciousness.”

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Photography: Courtesy of Louis Vuitton; Courtesy of On; Wu Jianquan, Shenzhen, China