Retail Trend Analysis

Retail is changing fast and big brands are disappearing. But that doesn’t mean retail is dying. It’s evolving. Shopping centers are being reimagined. And the tenants moving in look very different from the ones moving out. Here are six trends I’m seeing up close: 1. Medtail is growing.     Wellness clinics, IV drip centers, and cosmetic dermatology offices are leasing retail space. In high-income areas, healthcare is going retail.     2. Pet services are booming.     Doggy daycares like Dogtopia and K9 Resorts are filling vacancies left by traditional tenants. 70% of U.S. households have pets and landlords are taking notice.     3. Ethnic grocers are scaling.     Chains like H-Mart and Jagalchi are replacing big-box stores and Rite Aids. They’re buying real estate and serving diverse communities hungry for authentic global food.     4. E-commerce brands are going physical.     Wayfair, Amazon, and others are opening showrooms and stores. Digital-first companies are betting big on in-person experiences.     5. Resale is in.     Secondhand stores like Buffalo Exchange are gaining ground. Driven by Gen Z, sustainability, and economic pressure, resale is mainstream now.     6. Kid-focused tenants are expanding.     Swim schools like Goldfish and Big Blue are taking large retail footprints. Modern parents want life skills, not just playtime.     What’s the takeaway? Retail isn’t just about shopping anymore. It’s about wellness, pets, culture, and connection. The best shopping centers today feel less like malls and more like community hubs.

Retail marketing is turning from deterministic to probabilistic — here’s the logic: As complexity grows in combinations of data sets and variables in retail, it’s becoming increasingly difficult to use a single number; It’s more accurate to use a range of probable scenarios. This better aligns with how brands view their business. Because of this, I’m seeing CPG brands use high-powered probabilistic models to do scenario planning, forecasting, and marketing attribution/contribution using a range of numbers versus a single number. With this trend, marketing and analytics in retail will become more of an applied statistics profession such as data-science and econometrics versus just a business function. The faster a brand can turn data into actions, the faster the brand will win market share. Here’s a few examples of probabilistic approaches in retail today — 1. Path to purchase from marketing channels to retailers is challenging to measure directly — probabilistic methods such as marketing mix modeling are now used to find causal impact of marketing spend to sales. 2. Automated bid algorithms are turning from if-then deterministic rules, to statistical models that predict new bids with confidence levels based on modeled metrics. 3. Forecasting consumer demand and promotions based on trends, seasonality, and external factors. 4. Geo-lift studies that use statistical methods to measure causal impact of incremental sales on marketing channels.

☠️ Retail is DEAD….. 𝐫𝐢𝐠𝐡𝐭? ❌ Wrong. 🏢 I have been navigating the Retail CRE Landscape for 6 years now, here’s what I’ve learned: 1️⃣ In the dynamic world of Commercial Real Estate (CRE), retail shopping centers stand as a misunderstood product type, especially for investors new to this space. ▶️ Despite challenges like rising costs and changing consumer spending habits, the U.S. retail sector has shown remarkable resilience and growth in 2023. 📈Retail space occupancy has surged to historical highs. The third quarter of 2023 alone saw an increase in demand for retail space by nearly 15 million square feet, marking the 11th consecutive quarter of positive occupancy growth. 📉 Simultaneously, the amount of vacant retail space plummeted to the lowest since the pre-Great Recession era. 2️⃣ Key Drivers of Demand: A diverse range of sectors is fueling this demand. Food and beverage, fitness, experiential retail, discount stores, health and beauty, and medical services are all expanding rapidly. They benefit from a consumer pivot towards value, wellness, and experiences. ❗️However, more than a decade of limited construction, coupled with consistent demand growth, has led to a scarcity of high-quality retail spaces in prime and even secondary corridors in the U.S. 3️⃣ Trends in Demand and Property Types: Despite a slight deceleration, retail demand has increased by over 69 million square feet in the last four quarters. 👉🏽Retailers are showing a preference for efficient spaces in proximity to consumers, resulting in significant demand for freestanding or neighborhood retail properties. ‼️ These property types accounted for a staggering 95% of all retail demand growth over the past year. 4️⃣ The Divergence in the Mall Segment - The mall segment presents a more nuanced picture. Demand for space in lower-rated malls has declined significantly, with a 4 million square foot drop over the past year. There’s a clear division in the mall sector – lower-rated malls are losing tenants, while luxury and top-rated malls are gaining them. Since 2017, demand for space in lower-rated malls has decreased by over 45 million square feet and is expected to decline further in 2024. 💥For new investors in CRE, especially in the retail shopping center segment, these trends present unique opportunitie. 📝Investing in retail CRE requires a nuanced approach, considering both the macroeconomic landscape and localized market dynamics. It’s not just about the space but about predicting where and how consumers want to interact with physical retail. ❓ 𝐀𝐧𝐲 𝐦𝐲𝐭𝐡𝐬 𝐲𝐨𝐮’𝐝 𝐥𝐢𝐤𝐞 𝐦𝐞 𝐭𝐨 (𝐚𝐭𝐭𝐞𝐦𝐩𝐭) 𝐭𝐨 𝐛𝐮𝐬𝐭 𝐚𝐛𝐨𝐮𝐭 𝐫𝐞𝐭𝐚𝐢𝐥 𝐂𝐑𝐄? 𝐃𝐫𝐨𝐩 𝐭𝐡𝐞𝐦 𝐛𝐞𝐥𝐨𝐰 👇🏾 Tagging some of my retail friends! Kevin Fickle Benjamin Kogut Spencer Strong Dan Lewkowicz Barry Wolfe #retail #NNN #commercialrealestate #realestateinvesting

Are store openings making a comeback, or is the future still digital? After years of predictions that physical stores were finished, 2025 is telling a different story. According to CBRE, store openings in the US actually outpaced closures in 2024, with net growth led by value retailers, specialty food, and experience-focused concepts. In the GCC, new mall expansions and pop-up activations remain on the rise, with UAE retail sales projected to reach $63.6 billion by 2025 (Dubai Chamber of Commerce). Why the shift? Consumers want more than transactions. From Gen Z to Boomers, shoppers are seeking experiences, whether it’s in-store events, live demonstrations, or interactive tech. Gen Z is surprisingly pro-physical: A 2024 NRF study found that 81% of Gen Zers prefer to shop in stores for fashion and beauty, valuing instant gratification, social interaction, and immersive brand storytelling. Millennials still drive online spending but now use stores for pick-up, returns, and brand discovery. Older generations favor physical for trust and service, but even they are using retailer apps for loyalty and convenience. E-commerce sales, on the other hand, continue double-digit growth, especially in categories like electronics, home, and health. “Hybrid” shopping, think click-and-collect, QR code browsing, and virtual store assistants, is becoming the new norm. Is this retail renaissance a sustainable shift or simply a response to post-pandemic fatigue and novelty? As customer expectations evolve, the future may belong to brands that blend the best of both worlds. How has your own shopping behavior changed? Are you visiting stores more, and what’s drawing you in? For retailers, what’s actually working to get people off their phones and into physical space? Share your thoughts, stories, or predictions for the future of retail. #retailtrends #consumerinsight #shopping #storeexperience #futureofretail

India’s retail market is on a historic growth trajectory—expanding from ₹35 lakh crore in 2014 to ₹82 lakh crore in 2024, and now projected to cross ₹190 lakh crore by 2034. That’s a 2.3x jump in just a decade! 📌 58% of all purchases still happen offline, even as digital adoption soars, but online penetration has increased to 50% in 2024, compared to 18% in 2019 📌 A ₹10,000 sneaker and a ₹200 T-shirt are both “value purchases”—just for different consumer groups 📌 The middle class is growing, but so is the demand for hyper-personalized experiences 📌 Digitally savvy Gen Z shoppers coexist with an increasingly significant 45-plus demographic 📌 Despite global influences, there's a strong drive for local pride in consumer choices This creates a Retail Kaleidoscope—full of opportunity but also complexity. Who is winning this race? Retailers who master multilingual engagement - beyond just spoken language. Success requires strategic transformation requires: 1️⃣ Creating Seamless Omnichannel Experiences That Blend Digital Convenience with In-Store Trust Omnichannel isn’t just about having multiple touchpoints; it’s about integrating them into a unified, frictionless experience. While digital platforms offer speed, convenience, and personalized recommendations, physical stores provide tangible trust through human interactions, product trials, and immediate fulfilment. Brands need to seamlessly blend the two. 2️⃣ Developing Sophisticated Pricing Strategies Tailored to Local Economies Pricing can’t be one-size-fits-all, especially in diverse markets where consumer purchasing power, competition, and demand elasticity vary widely. 3️⃣ Building Supply Chains That Balance National Scale with Last-Mile Customization A scalable supply chain must deliver efficiency without sacrificing local adaptability. • Investing in micro-fulfilment centres for hyperlocal deliveries. • Partnering with regional logistics providers to ensure faster last-mile reach. • Leveraging modular manufacturing that allows customization based on local demand. 4️⃣ Investing in Data Analytics That Reveal Micro-Trends Before Competitors Notice Them Businesses should utilize predictive analytics to anticipate emerging trends based on search behaviour, social media mentions, and transaction patterns. 5️⃣ Focus on Value and Efficiency In volatile economic conditions, businesses that deliver high perceived value at optimal costs thrive. This involves: • Eliminating operational redundancies to maintain competitive pricing without sacrificing quality. • Leveraging technology-driven automation to reduce overhead. • Adopting "right-sizing" strategies—offering different product sizes, bundles, or subscription models to match varying budgets. The market is fragmenting into increasingly specific segments. The future belongs to those who can truly ‘speak consumer’. #RetailInnovation #IndianRetail #FutureOfRetail

📊 Retailers are rewriting the playbook - and it's not just about selling products anymore 🛍️ Bain's latest research reveals a seismic shift: "Beyond trade" activities now account for 15% of sales and 25% of profit for retailers in 2024, up from 10% in both cases in 2021. The new profit pools retailers are diving into are services: 💰 Retail media networks 🏪 Third-party marketplaces 💳 Financial services 📦 Logistics solutions 📊 Data monetization Traditional B2C sales are becoming commoditized. Smart retailers are building diversified revenue streams that often deliver higher margins than core retail operations. The 6 game-changing trends reshaping retail: 🤖 AI & Automation Takeover - Core functions like pricing and merchandising will run on autopilot 🛒 AI Shopping Agents - Consumers will delegate purchasing decisions to AI, threatening traditional brand loyalty 🎯 Hyper-Personalized Value - What shoppers value on Monday morning vs. weekend leisure time requires different approaches 🏷️ Private Label Explosion - Grocers becoming FMCG businesses as private label could hit 70% market share by 2035 🏬 Store Network Contraction - The US grocery market may need to trim 10% of retail space and 15% of stores 🌍 Cross-Border Scale Hunt - Local dominance isn't enough; absolute scale drives the biggest growth Retailers that don't embrace this transformation "might give away a few percentage points of profit margin" while bolder rivals reinvest those savings to gain traction with shoppers. We're witnessing retail's evolution from transaction-focused to ecosystem-focused businesses. The winners will be those who can seamlessly blend traditional retail excellence with new profit streams - think Amazon's playbook becoming the industry standard. 💥 Are you seeing this shift in your industry? 💬 How do feel towards these trends as a consumer? 🤷♂️ Which "beyond trade" opportunities are you most excited about, and which feel most threatening to traditional retail models? #Retail #Trends #DigitalTransformation #RetailMedia #Marketing #AI #Strategy #Commerce

Attending NRF 2025 was an inspiring experience & a powerful reminder of how the Retail industry is evolving. With nearly half of customers returning to physical stores during the 2024 holiday season, the focus on experiential retail has never been stronger. Retailers are embracing this trend to reimagine shopping as an immersive, technology-driven experience. In the accompanying video, I discuss how Next-Gen stores are becoming a priority for retailers to create dynamic ecosystems that blend innovation, collaboration, and customer-centricity. The retail landscape in 2025 is undergoing significant transformation as retailers adapt to evolving consumer demands and economic challenges. Here are some key observations from NRF 2025 and the trends that will shape the year 2025: 1. Pricing-Conscious Customers: The growing demand for value has placed pricing strategies at the forefront of retail priorities. Retailers face the challenge of balancing competitive pricing with profit margins amidst inflationary pressures. Advanced pricing analytics and agile supply chain systems are becoming essential to maintain precision pricing while safeguarding margins. 2. Rise of Social media influencers: CMOs are exploring alternative campaign approaches that may work better with Gen Z customers aiming to bridge the gap between brands and digitally savvy audiences. 3. Stores as Immersive Experiential Zones: To compete with digital-native brands, physical stores are being transformed into experiential hubs. Incorporating advanced technologies to enhance customer engagement and operational efficiency. 4. Faster Fulfilment for Online Orders through New Store Layouts & Omni-Warehouses: Retailers are investing in omnichannel strategies that integrate advanced analytics, AI-powered customer insights, & real-time inventory visibility to deliver frictionless experiences. The new store layouts are helping to turn a section of the store into a fulfilment centre which is critical as customers expect seamless, fast fulfilment for their online and in-store purchases. 5. Sustainability as a Key Differentiator: This has become a critical factor in shaping customer trust and loyalty. Retailers are prioritizing circular economy practices, green logistics, & eco-friendly products to meet evolving consumer expectations & regulatory requirements. Retailers in 2025 must balance value, experience, and purpose to remain relevant. At Tata Consultancy Services, we believe the future of retail lies in building a connected ecosystem powered by AI, cloud platforms, and advanced analytics. We are invested in helping retailers make Intelligent Choices and Smarter Decisions through our cutting-edge solutions which will help them adapt, innovate, and scale to lead in this next era of retail powered by innovation, collaboration, and a shared vision to create exceptional experiences. #TCSatNRF #NRF2025 Tata Consultancy Services - North America

The retail landscape is evolving fast - staying ahead means understanding the forces shaping its future. Here’s what’s defining the industry right now: 🔹 AI-powered shopping assistants are transforming how consumers discover and purchase, making every interaction more intuitive and personalized. 🔹 Discount retailers are facing new challenges as consumer expectations shift beyond price. Value-driven experiences and loyalty strategies will be critical for retention. 🔹 Community-driven marketing is on the rise. Micro-communities are redefining brand loyalty, with consumers seeking deeper connections and shared values. 🔹 Data-driven strategies are bridging online and in-store experiences. Retailers using real-time insights to create seamless, personalized journeys are winning the future. Retail’s next chapter belongs to brands that adapt, innovate, and put consumers at the center. Which trends are shaping your strategy? #FutureOfRetail #ConsumerTrends #RetailInnovation

I was bitten hard by the Retail Bug a long time ago. In 2025, I have developed some kind of infection ? I've led retail at Disney and Claire's, consulted globally, and taught countless retail leaders. I've never seen this big of a shift or more challenging markeplace. How do Leaders keep up today?? Top 10 Trends + Reality Check: 1/ AI Isn't Just Hype—It's the New Profit Engine ↳ The winners are using AI for prediction, not just automation ↳ Brands with AI-driven supply chains are seeing 30-40% less waste and higher margins 2/ Sustainability = Survival ↳ 78% of Gen Z won't buy from brands without clear environmental metrics ↳ The most successful brands are making sustainability profitable, not just possible 3/ Social Commerce is the New Retail HQ ↳ TikTok and Instagram drive 45% of discovery for new brands ↳ The best content doesn't feel like selling - it feels like sharing 4/ Community-First Licensing Wins ↳ The era of "slap a logo on it" is dead ↳ Failed licensing deals down 40% when starting with community input 5/ Physical Retail = Content Studio 2.0 ↳ Stores that double as content studios see 3x social engagement ↳ Every store associate is now a content creator 6/ Supply Chain Transparency is the New Currency ↳ 65% of consumers check product origins before buying ↳ The most valuable supply chains are the most visible ones 7/ Cross-Border is the New Local ↳ 82% of growth brands now sell internationally ↳ Cultural relevance beats geographical presence every time 8/ Real Personalization Finally Delivers ↳ AI-driven personalization driving 40% higher customer lifetime value ↳ The best personalization feels invisible 9/ Community Crushes Campaigns ↳ Brands with active communities spend 60% less on acquisition ↳ Your best marketing team? Your customers 10/ Speed Wins (But Purpose Scales) ↳ Trend-to-shelf time cut from 6 months to 6 weeks ↳ The sweet spot: Fast execution + Clear purpose Real-World Success: Take Lush Cosmetics - they've doubled down on their packaging-free stores and saw a 35% increase in store visits. Look at Sephora's AI skin analysis tool that boosted customer satisfaction by 42% while reducing returns. The Bottom Line: The retail winners of tomorrow aren't just selling products—they're building movements with passionate communities, intelligent data, and authentic purpose. Your Turn: Which trend are you implementing in your business right now? What unexpected results have you seen? Share your experience in the comments.👇 ➕ Follow Jim Fielding for more insights on retail innovation and authentic leadership ♻️ Repost to your community

Deloitte’s 2025 Retail Outlook is here, highlighting key trends shaping the retail industry this year. The industry is shifting from supply-driven strategies to hyper-personalized, data-driven approaches, a move we call mass to micro. With projected mid-single-digit growth in 2025, retailers are focusing on: 1️⃣ Engaging Value-Seeking Consumers: Strengthening loyalty programs and modernizing demand generation with AI and ML. 2️⃣ Unlocking Omnichannel Capabilities: Expanding in-house delivery and enhancing physical stores, as 80% of shopping still happens in-store. 3️⃣ Mastering Efficient Mass to Micro: Reducing tech debt, using AI for localization, and improving inventory management. Key stats from retail executives: 60% expect consumers to value price over loyalty. 35% name enhancing physical stores as top priority. 53% exploring M&A to diversify revenue streams and new capabilities. 80% expect increased investment in social commerce. 75% expect AI to assist with dynamic pricing Read the full report here https://lnkd.in/eFprMgb6