2025 Retail Trends in Review: How BearingPoint’s Predictions Shaped the Year

2025 was characterised by the unpredictability of US Trade Policy and sweeping changes under Trump’s administration.

Businesses that export to the US market have been forced to review their supply chain and assess tariff impacts, retailers can no longer solely rely on export markets like the US.

Tariffs continue to create logistical challenges for retailers reliant on goods from high-tariff regions like China. Retailers face the tough decision of whether to absorb the financial impact or pass it onto shoppers.

Case study:

More than two thirds of UK exporters say they’re actively diversifying their business beyond the US.

Across the UK, 15% of businesses in the electronics sector have sought to reduce their exposure to the US, as well as 20% of clothing and footwear companies, 15% of home goods businesses, and 14% of beauty and lifestyle brands.

Key takeaways:

It is important it is for retailers to build supply chain agility to ensure customer retention and protect profitability. Without a resilient supply chain, retailers' risk frequent product shortages, dissatisfied customers, and rising operational costs.

What happened:

2025 saw a new era of cyber risk, marked by the rise of AI-enhanced attacks that are more sophisticated but highly scalable.

Retailers have been forced to re-evaluate their security strategies as the impact is not limited to supply chain, extending to consumer trust with breaches in personal data eroding brand loyalty.

Case study:

A significant number of UK Retailers have faced cyber-attacks including Pandora, M&S, Co-op, Harrods, Adidas and Chanel.

M&S resumed click and collect services 15 weeks after it stopped the service during a cyber attack on 25 April. The hack affected the company in-store as well leaving shelves empty.  The financial impact of the incident amounted to £1.3m in losses per day.

Harrods experienced multiple unauthorised attempts targeting its internal systems. The retailer responded swiftly by restricting internet access across all sites.

Key takeaways:

Increased adoption of technologies with data at their core is driving more efficient and tailored customer experiences. Yet, retailers need to prioritise data privacy to build trust with customer and ensure compliance with regulations.

Retailers should consider leveraging AI for threat prediction and automatic incident responses and not merely reinforce legacy systems.

Businesses should stress-test their business continuity plans including aspects such as manual ordering processes.

What happened:

Retail media is quickly evolving particularly in the supermarket sector, 88% of grocers identify retail media as among their top growth priorities.

Grocery chains offer a variety of digital advertising and out of home opportunities that can target consumers directly.

Retailers are selling access to customers at the most crucial point of purchase (in-store). This will have a direct impact on brands who will be pushed to invest more to be visible in stores.

Case study:

A recent study by Co-op reported that retail media can increase brand recall by four times in convenience stores compared to campaigns in larger formats.

The future of retail media may lie in smaller store sizes and high shopper frequency where advertising messages can be recalled more often.

Key takeaways:

Retail Media Networks have exploded, projected to surpass $50 billion in annual revenue globally by 2025.

Retailers who leverage these can diversify revenue streams, enhance customer engagement, and improve ROI for advertisers.

What happened:

Retailers are shifting towards experience-led formats that blend entertainment, education and social interaction.

Social interactivity is becoming key to the online shopping experience.

In April 2025, Criteo revealed that 73% of consumers would describe online shopping as "practical but not exciting".

Live shopping, longer video tutorials and short social videos can all be part of making the shopping experience more interactive and inviting.

Case study:

Charlotte Tilbury hosts live masterclasses to showcase its beauty products and has seen conversation rates of up to 37% from live shopping events.

Liberty London has introduced the Fragrance Lounge, a dedicated space designed to personalise the fragrance discovery process. Customers are guided through to identify perfumes aligned with their individual preferences. The experience is delivered in a refined, club-like setting that includes complimentary refreshments. This reflects a broader trend in retail towards experiential engagement, where tailored service are used to deepen customer connection and drive brand differentiation.

Key takeaways:

Social commerce, customisation and community engagement all form part of the rise of experiential retail driven by consumer’s demand for engaging, memorable shopping experiences.

Retailers should create omnichannel experiences for seamless shopping journeys and increased engagement.

What happened:

We’ve seen brands move beyond commitments towards actions, with examples of reusable packing, eco-labelling and product take-back and repair schemes becoming more popular.

Repair is a crucial part of the circular economy and illustrates retailer’s growing commitment towards these practices.

Case study:

Nine of the UK’s largest retailers issues a joint statement of intent towards reusable packaging in July under a plan to offer a system to make it easy to shop for prefilled items in-store and online.

John Lewis expanded their repair services across all shops. Items can be cleaned, repaired and altered alongside dry cleaning and handbag restoration.

Key takeaways:

There is increasing demand on retailers to measure and report on ESG agendas and embrace the circular economy.

A significant 79% of Gen Z shoppers say their purchasing decisions are influenced by whether a brand or product aligns with their green values.

Brands with visible and measurable ESG commitments attract eco-conscious consumers and retain long-term loyalty.