The retail industry has weathered significant turbulence in recent years, navigating a landscape reshaped by global disruptions and evolving consumer expectations. While geopolitical uncertainties continue to cast a shadow over markets, the sector has demonstrated remarkable resilience and adaptability. According to World Data Lab’s World Consumer Outlook report global consumers will spend $3.2 trillion more in 2025 for a 6% year-over-year increase. 

This optimistic outlook is fueled by rapid technological advancements and shifting business models. Innovations such as artificial intelligence (AI), automation, and augmented reality (AR) are redefining how consumers interact with brands, while the direct-to-consumer (D2C) approach continues to gain momentum, dismantling traditional retail paradigms. These forces are driving a surge of creativity and competition, with retailers embracing cutting-edge solutions to deliver more personalized, immersive, and seamless shopping experiences. 

At HTEC, our retail domain experts tapped the following trends with the highest potential to transform the retail industry in the next year, shaping its evolution and setting the stage for a new era of commerce: 

Artificial intelligence  

The advantages of AI are obvious, offering retailers unparalleled opportunities to enhance operations and customer experiences. From AI-driven personalized product recommendations that anticipate customer needs to intelligent customer support systems providing seamless assistance, the impact of AI is profound. Additionally, AI plays a pivotal role in optimizing delivery routes, ensuring faster and more efficient logistics. These capabilities underscore the immense potential of the ongoing machine learning (ML) and AI revolution, which is reshaping the retail landscape into one of precision, efficiency, and elevated consumer satisfaction. And as retailers continue to invest in AI to improve customer experiences, they’re likely to see a concurrent boost in their customer bases. According to Hyken’s annual study, 85% of customers would go out of their way to find companies that deliver better customer service.  

As we move into the new year, retailers should also consider that leveraging AI is just the first step — it’s crucial to develop a strategy to use the technology and AI-powered tools well.  Statistics show that 70% of consumers see a clear gap forming between businesses that use AI well and those that don’t. Currently, AI is revolutionizing retail by enabling advanced fraud detection to protect businesses and customers from financial risks, leveraging demand forecasting to optimize inventory and meet customer needs efficiently, and introducing intelligent and visual product search that allows shoppers to find products effortlessly through images and context-aware queries, enhancing both security and the shopping experience. 

Omnichannel and phygital  

Today’s retailers are working hard to seamlessly blend physical and digital experiences for customers, giving rise to the “phygital” era. Omnichannel strategies, which integrate multiple touchpoints to create a cohesive shopping journey, are no longer optional — they’re essential. Research reveals that 73% of retail consumers now identify as omnichannel shoppers, a figure that continues to climb as customer expectations evolve. Retailers who prioritize omnichannel experiences are reaping the benefits of this evolution, retaining nearly 90% more customers than single-channel retailers. 

Adopting automation and investing in brick and mortar 

To make an omnichannel system run smoothly, retailers must build well-performing fulfillment centers preferably with solid degree of automation to reduce delivery time. Delivery options such as pick up and drop off (PuDo) and buy online and pickup in store (BOPIS) increase conversion rates significantly, as they present convenient and cost-effective solutions for retailers and customers alike, reducing the carbon footprint of each sale. Investing in in-store experiences, however, should still be a priority; a significant 70% of shoppers still visit brick-and-mortar stores weekly, and approximately one-third of US shoppers purchase an item right away when they see it in person. Reflecting this trend, 40% of brands invested in in-store technology in 2022 to enhance their spaces and deliver immersive consumer experiences that bridge the gap between traditional and modern retail. 

Boosting omnichannel CX with technology 

To capitalize on this trend in the next year, retailers should consider improving their omnichannel CX with gamification, augmented reality (AR) and virtual reality (VR), purchasing type variety, and embedded delivery or pick-up options. In omnichannel models, these features and approaches generated significant growth rates in the retail sector. With the continued popularity of social commerce and increased shopping via smartphones, global e-commerce is expected to grow at an 11.6% CAGR from 2024 to 2030 and 43% of consumers surveyed by Capgemini expressed that immersive experiences will have a significant impact on how they interact with brands and services. This convergence of in-store and digital engagement is reshaping how brands connect with their audiences, offering richer, more captivating experiences that keep customers coming back. 

Direct-to-consumer model 

The direct-to-consumer model (D2C) global market has evolved rapidly in the last couple of years, with immense growth rates — from $196 billion in 2023 to a projected $571 billion in 2025. D2C’s higher profit margins and lower pricing models, faster response to market changes, and improved customer management, decision making, and brand control are driven by technological enablement. Media platforms, such as TikTok and Instagram, enable direct customer communication and targeting to increase the number of new customers and the retention of existing ones. The model has also enabled more local and small producers to compete with global brands, reshaping the habits of shoppers. With the rise of environmental, social, and governance (ESG) considerations in spending, shoppers are more interested than ever in supporting local economies, reducing their carbon footprint, and taking the pressure of supply chains. 

Q-commerce 

Another emerging retail industry niche is quick commerce, often referred to as ‘delivery on demand’ or ‘Q-commerce’. Q-commerce centers around the rapid delivery of products, typically within one hour. It is expected that Q-commerce will grow to over $75 billion dollars by 2025 with an annual growth rate of 10%. Furthermore, Q-commerce represents a kind of last-mile delivery, which the World Economic Forum (WEF) identified as a fast-growing industry segment. According to WEF, two sub-types of last mile delivery, same-day delivery and e-grocery, are expected to grow 20-40% and10% per year, respectively.  In the same report, WEF estimated that by 2025, same-day and instant delivery will reach 15% of total online retail in the US. This industry is poised to bring tectonic shifts to retailers’ fulfillment operation models.   

Consumers are resilient but cautious 

When it comes to consumer segments, statistics reveal that the buying volume improved and will continue to grow in the next year. The percentage of groups with the highest purchasing power grew in the previous year while inflation trends are dropping. However, consumers remain cautious and are seeking more value for money. Consumers were given more shopping choices than ever as new, innovative brands appeared on the global market, offering similar (or higher quality) products as those already on the market for comparable or lower prices.  

The market shows positive signs of stabilization and consumer expectations and demands have increased and diversified. These indicators go hand in hand with retail trends focused on faster delivery (D2C, Q-commerce), omnichannel and phygital retail, and new technological integrations centered around AI, VR and AR, and personalization. From leveraging AI to mastering omnichannel strategies, the future of retail lies in creating seamless, engaging, and customer-centric experiences that drive loyalty and growth. 

At HTEC, we bring together cross-functional teams with extensive retail expertise to deliver solutions that drive customer satisfaction and growth. From designing and building custom infrastructure for smart warehouses to developing secure, seamless customer payment processing systems, and AI assistants, we equip retailers with the tools they need to thrive in a dynamic market. Whether it’s optimizing supply chains or creating innovative customer experiences, our holistic approach ensures your business stays ahead of the curve. 

Are you looking to implement the latest technologies to elevate your customer experience and stay ahead in the competitive retail landscape? Connect with Nemanja Jovanovic, senior product manager at HTEC.