What I Learned About Retail in 2025
If 2024 was about recovery and recalibration, 2025 was about clarity. Retail stopped debating what might matter and started acting on what does. From boardrooms to backrooms, this was the year strategies got sharper, technology got more practical, and the gap widened between retailers who moved and those who waited.
Big events reset priorities.
The year was punctuated by moments that forced hard decisions. Continued pressure on the consumer made value a permanent mindset, not a temporary phase. Supply chain fragility showed up again, whether through labor actions, geopolitical tension, or climate driven disruptions, reminding everyone that resilience is now a core competency. Store closures and restructurings did not signal retail’s decline, but rather its pruning. The brands that exited did so loudly. The ones that stayed learned to operate leaner, faster, and closer to the customer.
Technology grew up.
2025 was the year retail tech stopped chasing shiny objects and started solving boring problems really well. RFID crossed the line from pilot to platform, powering inventory accuracy, loss prevention, and omnichannel fulfillment at scale. AI moved out of slide decks and into workflows, improving demand forecasting, pricing discipline, customer service, and associate productivity. Computer vision and smarter cameras quietly became standard infrastructure, especially in high shrink environments. Most importantly, retailers stopped buying tools in isolation and started demanding interoperability. If it did not integrate, it did not last.
The store reclaimed its role.
For years we asked whether stores mattered. In 2025, the answer was obvious. Stores became fulfillment hubs, media channels, service centers, and brand billboards all at once. Retailers invested in associate enablement, mobile tech, and better data because the human element proved to be the real differentiator. Experience did not mean gimmicks. It meant speed, accuracy, trust, and recognition.
Loyalty and data finally converged.
The industry moved past points-for-discounts thinking. The winners treated loyalty as infrastructure, not marketing. First party data became the fuel for personalization, pricing, and product decisions. Privacy was no longer an afterthought, and consumers rewarded brands that were transparent and useful with their data. Retailers learned that owning the relationship matters more than owning the channel.
Financial discipline ruled the year.
Easy money is gone, and 2025 made that permanent. Retailers focused on unit economics, margin quality, and return on technology investment. Buy now pay later faced real scrutiny. Growth without profitability stopped being celebrated. This discipline hurt in the short term but created healthier businesses heading into the next cycle.
Looking ahead to 2026.
What excites me most is that retail enters 2026 with momentum, not confusion. The playbook is clearer. Data will get better. Stores will get smarter. AI will become invisible and indispensable. The distance between great retailers and average ones will widen, but the path to greatness is more visible than it has been in years.
At TWIR, we are heading into 2026 energized, curious, and optimistic. Retail is still hard, still competitive, and still changing fast. But it is also more intentional, more honest, and more innovative than it has been in a long time. We cannot wait to keep learning together.