RDM's In-Store Insights | January

In-Store Trends 2025

Three words define supply chains in 2025: adaptable, efficient, and resilient.

Physical retail stores continue their rebirth this year. Essential for customer retention, acquisition, brand identity, and loyalty, modern stores must offer immersive experiences that can’t be replicated online while showcasing each brand’s unique personality.

• Hybrid shopping

Online shopping is fast, but nothing beats seeing, touching, and trying products in person. That’s why retailers are blending digital convenience with in-store experiences into ‘Phygital retail’. Let’s take a look at Sephora who nails this balance. You can swatch a lipstick in-store or try it virtually through their AI-powered Virtual Artist app. It’s seamless, fun, and exactly what modern shoppers want.

Tip: Meet customers where they are. Let them shop their way, whether it’s scanning a QR code for product info, testing an item virtually, or getting hands-on in-store.

• AI And Machine Learning

AI is changing how people shop. Think of Amazon’s AI bot, Rufus, helping customers make smarter purchases or Walmart’s voice-shopping AI, where customers add items to their cart just by speaking. These experiences help customers feel confident about their purchase while the shopping journey becomes fun, faster, easier, and more intuitive.?

Tip: Use AI to assist, not annoy. AI should make life easier, not feel like an aggressive salesperson.

• Cashierless and Checkout-Free Stores

Long checkout lines? Nobody has time for that. With mobile and contactless payments projected to grow 12.4% annually through 2034, checkout-free experiences are becoming the norm. But convenience shouldn’t come at the cost of security or inclusivity. Some customers still prefer cash, and digital payments need to be seamless and safe.

Tip: Keep checkout options simple and inclusive. Let customers choose how they pay.

• Experiential Shopping

Shopping isn’t just about buying anymore, but about feeling something. That’s why brands are turning stores into social spaces, event hubs, and interactive playgrounds. Tech Village Hamburg is a perfect example! A 15,000-square-meter gaming and tech wonderland with a pro gaming arena, content streaming stations, and live events. Shopping there is an experience!

Tip: Make your store a place worth visiting. Live demos, interactive displays, or even in-store workshops turn shopping from a task into an event.

• Circularity is the future

Shoppers are choosing better, not more. Resale, repair, and trade-in programs are booming, and brands that embrace circularity are winning big. Patagonia, IKEA, and Lululemon already have buy-back and resale programs, keeping products in circulation while boosting brand loyalty. And with new sustainability regulations rolling out across the U.S. and Europe, eco-friendly retail is essential.

Tip: Sustainability isn’t just good for the planet, it’s good for business. Help customers shop guilt-free!

Retail Insights

• ChatGPT will increase traffic to retailers and brands in 2025, particularly from younger generations.
• Retailers have made progress on phasing out harmful chemicals, nonprofits say.
• Gen Z prioritizes buying beauty and luxury goods in person, placing a premium on the physical shopping experience, research from Adyen shows.
• The 2025 Sprout Social Index Edition XX study finds consumers are relatively split on whether it’s cool or embarrassing for brands to participate in viral trends.
• Has OREO raised the foodie bar with Post Malone collaboration?
• Ulta Beauty strategy includes putting a customer-centric lens on operations and investing in methods that can drive customer lifetime value.
• Sephora premiered its first international film, ‘Beauty & Belonging’, focused on showcasing diverse perspectives on beauty.
• Walmart has admitted an inability to meet its near-term emissions targets. Is this a cause for concern?

Data Insights

• A recent survey found that only 40% of retailers are fully prepared to implement AI projects.
• After the holiday season, shoppers have already sent back $112 billion in merchandise globally, up 28% on the year prior, per Salesforce.?
• In 2024, U.S. store closures totaled 7,325, reaching the highest number of closings since 2020
• Store brand sales increased nearly 4% to $271 billion in 2024.
• Private label sales are projected to grow 6% annually through 2030, reaching $462 billion.
• Consumer spending forecast to grow 3.1% this year.
• Fomo Festival dedicated to entrepreneurs debuts in Bucharest, Romania this May.
• Romania’s retail market saw more projects in 2024, but total leasable area was 15% lower YoY.

Local In-store Executions of the Month

Store 360 Spotlight

Have you ever wished you could see exactly what’s happening in your stores at any moment, from every angle? Store 360 makes that possible. It gives you real-time insights into what’s working, what’s not, and where to focus for maximum efficiency.

But it’s more than just tracking numbers. Store 360 helps you spot opportunities you might otherwise miss, from low stock levels to inconsistent pricing or promotions that aren’t being executed properly. It ensures that every store delivers the experience you’ve planned, every time.

With comprehensive tracking, real-time monitoring, and actionable insights, you’re not just managing stores, you’re optimizing them. Ready to see your business in full clarity? Store 360 makes it happen.

Contact us here to learn more.

This newsletter is brought to you by Retail Data Monitoring, Romania’s leading expert in in-store retail insights. Interested in learning how our services can help your business grow?Reach out to us—we’d love to chat!