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Table of Contents
An in-depth look at emerging retail trends shaping the future, tailored for the next generation of business leaders and innovators.
According to the US Census Bureau, retail e-commerce sales in the fourth quarter of 2024 accounted for 16.4% of total retail sales, showing significant growth in the digital retail space. For business students considering futures in retail or entrepreneurship, understanding current retail trends is essential for success.
Tetr College of Business prepares students with real-world knowledge of global markets, including comprehensive training in emerging trends in retail industry. Learn more.
Phygital Retail Experiences
AI-Powered Personalization
Experiential Retail Spaces
Growth of Sustainable Shopping
Frictionless Delivery and Payment Options
Augmented Reality in Shopping
Social Commerce Expansion
E-commerce Acceleration
Supply Chain Resilience
Phygital retail, combining physical and digital shopping elements, represents one of the most significant retail trends of 2025. According to ABI Research, 70% of consumers now prefer omnichannel shopping experiences. Physical retail stores are changing accordingly, with the number of traditional retail stores in North America forecasted to decline at a Compound Annual Growth Rate of -1.9% between 2024 and 2030.
Successful retailers now seamlessly integrate physical and digital channels using advanced inventory management systems and sophisticated analytics to create cohesive customer experiences across all touchpoints.
Artificial intelligence has transformed how retailers understand and serve customers. AI tools analyze consumer behavior patterns to deliver hyper-personalized recommendations and experiences. Retailers use machine learning algorithms to predict purchasing patterns, optimize pricing strategies, and create individualized marketing campaigns based on previous shopping history. Learn more about how AI works here.
The integration of AI into retail operations represents one of the most transformative recent trends in retailing, allowing for more efficient inventory management and improved customer engagement strategies.
Learn how Tetr’s Bachelor of Science in Artificial Intelligence is blending academic rigor with global exposure across seven countries.
Physical stores now function as more than transaction spaces – becoming immersive environments that blend entertainment, education, and engagement. In 2024, experiential retail has emerged as a powerful strategy to captivate customers and foster deeper brand connections.
Major brands have transformed flagship stores into interactive spaces with virtual fitting rooms using augmented reality, workshops, live events, and exclusive in-store content that cannot be replicated online.
Sustainability has moved from a niche concern to a mainstream retail trend. The secondhand market, or ecommerce, has seen substantial growth as consumers increasingly value sustainable and ethical shopping practices.
According to Bluestone PIM, recommerce is among the top retail trends shaping 2024 and beyond, with consumers demanding greater transparency about product origins, manufacturing processes, and environmental impacts.
Contactless payments and seamless delivery options have become expected standards rather than premium offerings. Same-day delivery, click-and-collect services, and cashierless checkout technologies have transformed consumer expectations about shopping convenience.
The focus on reducing friction points throughout the purchasing journey represents one of the most practical emerging trends in the retail industry that directly impacts customer satisfaction and loyalty.
AR technology has revolutionized how consumers interact with products before purchasing. Virtual try-on experiences for clothing, accessories, and cosmetics allow shoppers to visualize products without physical interaction.
Furniture retailers now offer AR applications enabling customers to visualize how pieces would look in their homes before making purchases, significantly reducing return rates and enhancing customer satisfaction.
Social media platforms have evolved from marketing channels into direct sales platforms. Social commerce integrates shopping functionalities directly into social media experiences, creating seamless paths from discovery to purchase.
According to Mapsted, social commerce involves using social media platforms to sell products directly to customers, changing how businesses interact with consumers through more direct and personalized engagement.
E-commerce continues its upward trajectory, with total e-commerce sales for 2024 estimated at $1,192.6 billion, an increase of 8.1% from 2023. While physical retail maintains importance, digital sales now account for a growing percentage of total retail volume.
The continued growth of online shopping represents one of the most established trends in retailing, with mobile commerce specifically showing rapid expansion among younger consumers.
Recent global disruptions have highlighted the importance of robust supply chain management. Retailers now invest heavily in supply chain resilience, implementing blockchain technology for improved transparency, diversifying supplier networks, and developing sophisticated inventory management systems.
This trend focuses on mitigating risks and ensuring consistent product availability even during market disruptions – a critical consideration for retail trends analysis.
Apply now to Tetr's undergraduate program to gain cutting-edge knowledge of global retail management.
Tetr College of Business offers a revolutionary approach to business education through immersive learning across seven global locations. Students gain practical experience with retail trends by building real businesses while studying, including e-commerce ventures and technology startups. This hands-on approach provides direct exposure to emerging trends in the retail industry through applied learning rather than theoretical study alone.
The Bachelor's Program in Management & Technology at Tetr includes visits to retail innovation hubs and global companies, giving students firsthand insights into successful retail operations worldwide. Faculty includes experienced industry professionals who provide mentorship on navigating the rapidly changing retail landscape.
Apply to Tetr's undergraduate program to gain the entrepreneurial skills needed for success in tomorrow's retail environment. For additional information about Tetr's innovative approach to business education, contact the admissions team at [email protected].
Retail Industry Trends FAQ
What are the emerging retail trends businesses should prioritize in 2025?
Key emerging trends in retail industry include phygital retail integration, AI-powered personalization, experiential shopping spaces, sustainability practices, frictionless payment and delivery options, augmented reality applications, social commerce expansion, e-commerce growth, and supply chain resilience strategies.
What is experiential retail, and why has it become increasingly important?
Experiential retail creates immersive and engaging shopping environments beyond traditional transaction-focused spaces. According to retail industry analyses, experiential retail has gained importance because it differentiates businesses from competitors and builds lasting customer relationships through memorable in-person experiences that cannot be replicated online.
How is AI changing the retail landscape for future entrepreneurs?
AI transforms retail by enabling data analysis for personalized recommendations, streamlining supply chain operations, optimizing inventory management, and enhancing overall shopping experiences through predictive analytics. Future retail entrepreneurs must understand AI applications to remain competitive in an increasingly data-driven market.
What is social commerce, and how is it reshaping retail business models?
Social commerce integrates shopping functionalities directly into social media platforms, allowing businesses to sell products without redirecting customers to external websites. This model changes traditional retail by creating more direct customer interactions, enhancing accessibility, and blurring boundaries between content consumption and purchasing decisions.
How can business students prepare for careers in the evolving retail sector?
Business students should focus on developing cross-disciplinary skills combining technology understanding, data analysis capabilities, customer experience design, and sustainability knowledge. Gaining practical experience through hands-on projects and understanding global retail markets provides valuable preparation for entrepreneurial opportunities in retail.
