The retail industry had an eventful year in 2024, with a combination of tight vacancies and bankruptcies. Despite this, consumers faced high prices and economic uncertainty, resulting in a mixed shopping experience.
In their whitepaper titled “Retail Trends to Watch in 2025,” Placer.ai analyzed the significant trends that emerged in 2024 and predicted what could happen in the following year. The key findings from the whitepaper are as follows:
1. Discounters Reach Their Limit
Dollar stores and discount retailers have thrived during times of economic volatility but may need to make adjustments due to slowing foot traffic. This presents an opportunity for these chains to reevaluate their offerings.
2. Quality and Value Remain Key
Consumers continue seeking bargains without compromising on quality. Retailers who offer affordable specialty products or unique experiences see higher foot traffic as seen with Trader Joe’s constantly updating its private-label mix or Chili’s offering FSR experience at QSR price points.
3.Convenience is Still Important
While shoppers are making shorter trips for groceries, they are willing to travel further for specialty items.
At restaurants, technology has become crucial for speeding up service; Chipotle’s avocado-peeling robot or McDonald’s automated restaurants attract more customers.
4.Formats Go Smaller
To increase weekday visits from locals Macy’s introduced smaller store layouts while home improvement brands like Harbor Freight Tools catered towards smaller markets by introducing fewer square feet locations.
5.Legacy Brands Make A Comeback
Brands popular among millennials during the ’90s-2000s seemed dormant until recently when Gap,Abercrombie & Fitch,and Anthropologie began turning things around.This trend is expected to continue into next year.
6.Millennials Are Still Valuable Customers
Despite growing older,millennials remain a coveted demographic accordingto Placer.ai analysts.Sam’s Cluband Taco Bell target this age group through age-specific and nostalgic products and services.
