The Top Retail Trends to Watch in 2025
The retail industry has always been defined by change, but the past year has seen transformations that are reshaping its very foundation. In 2024, we witnessed the rise of new shopping channels, the explosion of marketplaces, and significant advances in delivery logistics. As we move into 2025, these shifts are accelerating, offering both challenges and opportunities for businesses. Here are five trends that will shape the future of retail in the year ahead.
1. Social Commerce Takes Center Stage
Social commerce is no longer an emerging trend — it’s a game-changer. In 2025, platforms such as Instagram, TikTok, and X will continue to evolve as shopping hubs, enabling users to discover, browse and purchase products seamlessly. Features such as live shopping events, influencer-driven recommendations, and interactive posts are making it easier than ever to convert followers into customers.
For example, TikTok’s integration of shopping tools allows users to purchase products without leaving the app, turning casual browsing into instant transactions. Streamlining the connection between online stores and social platforms will be critical for engaging audiences and driving sales. Retailers that prioritize this channel will be better positioned to thrive in this dynamic landscape.
2. Hybrid Buying and the Rise of In-Store Showrooms
The lines between digital and physical shopping are increasingly blurred. Retailers are embracing hybrid shopping experiences where consumers explore products in-store but finalize purchases online for home delivery. This approach not only minimizes in-store inventory requirements but also merges the tactile benefits of physical retail with the convenience of e-commerce.
By investing in tools that integrate online and offline shopping, businesses can create seamless consumer journeys tailored to diverse preferences. This omnichannel strategy is essential to meeting the demands of tech-savvy Gen Z shoppers and traditional baby boomers alike. Retail in 2025 will focus not on choosing between digital or physical but on delivering a unified experience across all touchpoints.
3. Marketplaces Diversify and Expand
Marketplaces are rapidly evolving and multiplying. While platforms like SHEIN, Temu, and TikTok Shop disrupt e-commerce, established retailers such as Tesco and Debenhams are entering the marketplace game. At the same time, niche verticalized marketplaces, such as Poshmark for pre-loved items and Back Market for refurbished tech, are gaining traction.
For retailers, participating in these marketplaces offers immense opportunities to reach new customers but also poses logistical challenges. Streamlined multichannel management software will become a must-have to avoid operational bottlenecks and to simplify integrations. Success in 2025 will hinge on the ability to adapt quickly and efficiently to this dynamic marketplace environment.
4. AI in E-Commerce: The Age of Adaptive Retail
From Shopify’s Magic AI crafting seamless e-commerce solutions to Amazon’s generative artificial intelligence tools creating tailor-made product listings, AI is reshaping how we shop and sell. Walmart’s Wallaby, a proprietary large language model, is pioneering “Adaptive Retail,” a new era of profoundly personalized customer experiences.
By analyzing preferences and behaviors, these innovations are bringing products to shoppers in precisely the ways they want — whether that’s a smoother search experience or hyper-relevant recommendations. As AI investment accelerates, expect the biggest players to continue setting the standard, making retail more intuitive, responsive and personal than ever before.
5. Out-of-Home Delivery Becomes Essential
Out-of-home (OOH) delivery is emerging as a critical solution for modern retail. As consumer preferences shift away from home delivery, alternatives like parcel lockers and pick-up/drop-off (PUDO) points are gaining traction. These options offer greater convenience, flexibility and sustainability while helping retailers reduce last-mile delivery costs.
The trend is already making waves in Europe, where 9 percent fewer shoppers prefer home delivery compared to last year. For retailers, adopting OOH delivery methods isn’t just about convenience; it’s an operational necessity for improving delivery success rates and meeting evolving consumer expectations. As e-commerce grows, OOH delivery will be a cornerstone of competitive retail strategies.
2025 promises to be a pivotal year for retail, driven by technological advancements and changing consumer behaviors. Businesses that stay ahead of these trends — from embracing social commerce and hybrid shopping to adopting OOH delivery — will be better positioned to meet the demands of a fast-evolving market.
Georgia Leybourne is chief marketing officer of Linnworks, an e-commerce inventory and order management software provider.
Georgia Leybourne is Linnworks’ Chief Marketing Officer. She brings 15 years’ experience in supply chain and logistics and joined Linnworks from Transporeon, having previously worked for Manhattan Associations. She brings significant experience in digital commerce and has a diverse background that includes marketing, customer service, sales and project management. She’s dedicated to creating frictionless consumer journeys, enhancing revenue for retail, B2B wholesale and DTC operations. Georgia holds a BA in Business Studies, a DipM, and is a Fellow of the Chartered Institute of Marketing.
