From cutting-edge AI agents to the rise of social commerce and the comeback of brick-and-mortar stores, the future of retail is looking brighter than ever. At NRF 2025: Retail’s Big Show in New York City, some of the retail’s most inspiring leaders came together to discuss the trends and innovations shaping an industry that touches everyone, everywhere, every day.
As a hotspot for new ideas and forward-thinking conversations, the event gave us a glimpse into what’s next for retail. Our team was thrilled to attend and walked away with four key themes impacting retail strategies as we head into 2025.
When it comes to innovation and technology in retail, two letters dominate the conversation: AI. While it’s been around for a few years, AI is set to make an even bigger impact in 2025.
AI agents are now taking center stage by leveraging data in unprecedented ways. One of their standout abilities is understanding natural language to bridge the communication gap between how consumers express their needs and how retailers organize their products. Imagine a customer saying, “I’m looking for a red jacket with a zipper in a size medium.” AI agents can analyze the retailer's data and provide personalized, spot-on recommendations.
At NRF 2025, Walmart U.S. President and CEO John Furner and NVIDIA VP and General Manager, Retail & CPG Azita Martin discussed how AI agents are enhancing both customer experiences and operational efficiency. Martin introduced NVIDIA’s AI Blueprint, a tool designed to help developers build AI-powered shopping assistants that offer real-time, tailored recommendations based on customer input. She also unveiled Nemotron, a family of AI models equipped with both language and perception capabilities, that allow developers to create agents for applications like customer support, fraud detection, supply chain optimization, and inventory management. She likened Nemotron’s significance to the impact of ChatGPT on language processing, saying, “It’s to the physical world what ChatGPT is to text and language.”
AI’s influence extends beyond the store. For example, L’Oréal is combining digital twins with generative AI to create engaging advertisements and campaigns faster. Meanwhile, Walmart has utilized NVIDIA’s data science tools to improve forecasting, where even a 1% improvement can drive substantial business gains.
This leads to the common question: Will AI replace jobs? While AI isn’t here to replace marketers, it’s reshaping workflows to make them faster, smarter, and more efficient. Martin shared a powerful quote from NVIDIA CEO Jensen Huang: “Somone asked, ‘Is ChatGPT going to take our job?’ [Huang] made a point that has always stood out with me,” Martin said. “I always use it on his behalf. And that is: ‘No, but someone using generative AI may take your job.’ So, embrace it. It’s a tool that just makes you more productive, and it’s going to make you so much smarter.”
As AI continues to evolve, its role in retail is only set to grow and help retailers deliver personalized, efficient shopping experiences while improving behind-the-scenes operations.
Social commerce and live shopping are changing the way brands connect with consumers, merging entertainment, engagement, and seamless purchasing. Social commerce takes place on platforms like Instagram, Facebook, and TikTok, where users can shop directly through product tags in posts or live streams. Meanwhile, live commerce involves real-time shopping events on platforms like TikTok Shop or brand-specific websites where influencers or brands showcase products, answer questions, and enable instant purchases.
In the U.S., social commerce is growing quickly, currently making up 6.6% of sales. That’s still catching up to markets like China, where platforms like Douyin (China’s TikTok) drive nearly a third of sales. TikTok Shop is already accelerating this trend stateside, with half of its active users reporting they’ve made purchases on the platform.
At NRF 2025, brands like Rare Beauty and H&M showcased how these strategies are reshaping retail, especially for Gen Z consumers who use social media to discover and explore new brands. Rare Beauty has leaned into TikTok Shop’s engaging format to connect directly with its audience. Their live shopping events, such as the interactive "Rare Chats," have created memorable, hands-on experiences that build loyalty while boosting sales. As Rare Beauty’s Chief Marketing Officer Katie Welch put it: “We really got to know our community firsthand, and they stayed with us.”
For H&M, influencer marketing plays a key role in their social commerce strategy. Linda Li, H&M Americas’ Head of Customer Activation, highlighted how platforms like Pinterest, Instagram, Snapchat, and even Roblox allow brands to engage younger audiences.
“Social commerce has primarily been in the realm of influencer marketing for us,” said Li. “What makes it so special is that it tackles brand building, awareness, consideration, and conversion all at once. It’s turned the traditional marketing funnel on its head.”
Even with uncertainties around platform regulations and the possibility of bans, the future of social commerce looks bright. Welch emphasized the importance of following consumer attention to wherever they go next—be it TikTok, Pinterest, or Snapchat. Both Rare Beauty and H&M have demonstrated that staying agile and prioritizing community are essential to thriving in the evolving retail landscape.
“The name of the game in retail is change, uncertainty, and the unexpected,” Li said. “To thrive, brands must remain agile and flexible.”
A few years ago, headlines were buzzing about the “death of retail,” with empty malls and shuttered storefronts seemingly marking the end of an era. But the story wasn’t so simple. While some stores did close (mostly underperformers), others flourished, and new ones emerged in even greater numbers. Macy’s Chairman and CEO Tony Spring pointed out that the so-called demise of department stores has been predicted time and again. “The death knell has kind of been rung multiple times,” he noted, underscoring the resilience of well-managed retail spaces.
Fast forward to 2025, and we’re witnessing not just the survival of retail stores but a full-scale revival. The driving force? Gen Z and Gen Alpha shoppers, who are moving beyond screens to seek real-life experiences. These younger consumers want more than just a transaction, they’re looking for spaces to connect with friends, interact with products, and immerse themselves in dynamic environments.
For retailers, this shift means it’s time to innovate. Technology is at the forefront of reimagining stores, enhancing customer experiences, and streamlining operations. Macy’s “Bold New Chapter” strategy, launched in early 2024, is a great example. Based on input from 60,000 active and inactive customers, Macy’s pinpointed five priorities: better merchandise, improved service, modernized marketing, more appealing visuals, and a faster supply chain.
The strategy kicked off with 50 pilot stores, focusing on upgrading merchandise, redesigning layouts, and reintroducing personalized service in fitting rooms. The results? Three consecutive quarters of growth in both net promoter scores and comparable store sales. Macy’s has also leveraged advanced technology to refine operations.
“We’re also trying to make sure our operations are taking advantage of today’s technology,” Spring explained. “Whether that’s algorithm-driven decisions on where to fulfill products to making sure the right depth, size, and color assortments are in the right locations.”
Macy’s luxury brands, Bloomingdale’s and Bluemercury, are also embracing innovation to meet consumer expectations. For Bloomingdale’s, it’s not just about selling products, it’s about storytelling and creating memorable experiences. CEO Olivier Bron emphasized that fostering customer relationships and offering curated shopping experiences keeps the brand competitive in the luxury market.
At Bluemercury, the focus is on expertise and personalization. CEO Maly Bernstein highlighted the company’s investment in associate education to deliver tailored beauty solutions. Recent expansions into professional skincare and fragrances further demonstrate Bluemercury’s commitment to meeting the needs of today’s luxury beauty consumers. “In a world where tech continues to grow, we’re prioritizing the human,” Bernstein explained, stressing the importance of connection in retail’s future.
Other retailers are blending digital insights with physical spaces to elevate the in-store experience. Trang To, Tapestry VP of Omni, sees untapped potential in applying online analytics to brick-and-mortar stores. “On our sites, I know what the consumer is clicking on, how much time she’s spending, her experience through checkout,” To said. “I have all of that information in the stores, but I’m not harnessing it in the same way.” To mentioned emerging technologies like computer vision, a type of AI that analyzes visual content like a human, “has the power to transform how we think about store design, merchandising, store associate training and even labor productivity.”
H&M, an early adopter of AI, is now diving deeper into ambient intelligence and low-cost sensor technology, like RFID, to optimize store operations. By pairing these tools with AI, H&M is gaining insights into product locations and enhancing personalization. “We’re just scratching the surface,” said H&M CDO Ellen Svanström, noting the vast potential for integrating physical and digital retail.
This blend of technology, creativity, and human connection is redefining the role of brick-and-mortar stores. Retailers who embrace these innovations are proving that physical stores are far from obsolete, they’re evolving into spaces that resonate with today’s consumers.
NRF 2025 reminded us that to stay ahead, retailers must implement strategies that deliver personalized experiences, seamless omnichannel journeys, and smarter decision-making. At Concord, we don’t just help brands keep pace, we help them lead the way.
From leveraging AI and data science for personalization to building loyalty programs that bring customers back time and time again, we’re shaping the future of retail innovation:
At Concord, we’re committed to helping retailers adapt and thrive in today’s landscape. Ready to lead the way? Let’s talk!
Not sure on your next step? We'd love to hear about your business challenges. No pitch. No strings attached.
