NRF 2025 Big Show, held in New York, reaffirmed its relevance as the premier global stage for discussing trends and innovations shaping the retail industry. From January 12 to 14, executives, CEOs, and industry leaders shared their strategies, challenges, and visions that are redefining the market. From the perspective of leadership in retail and franchising, I explore below key insights and case studies that stood out at the global event, as well as lessons that could impact retail in the long term.
Artificial intelligence (AI) remains the driving force behind retail transformation. Companies like Amazon and Walmart demonstrated how AI is being used to revolutionize processes, improve customer experience, and optimize operations.
At Amazon, AI is integrated across multiple fronts, from the conversational shopping assistant Rufus, which answers complex consumer questions, to logistics enhanced by mobile robots and analytical systems that highlight key pros and cons of products. At Walmart, partnerships with tech companies like NVIDIA are enabling the use of digital twins to predict demand, optimize inventory, and even simulate store layouts. This efficiency is not just operational but also strategic, creating smarter and more connected stores.
This comprehensive use of AI positions the technology as essential to meet growing demands for personalization, agility, and efficiency.
NRF 2025 also made it clear that omnichannel retail is no longer an option but a necessity for retailers looking to stay competitive. Practical examples reinforcing this idea highlight the importance of integrated strategies that drive traffic to physical stores, which are playing an increasingly central role in customer product experiences and brand relationships.
Two key takeaways on this topic are: hybrid stores, iwhich integrate the physical and digital, where retailers offer a seamless experience combining convenience and personalization; and social commerce, where platforms like TikTok and Instagram are becoming increasingly relevant to boost sales and engagement, as demonstrated by Pacsun, which reported 10% of its digital sales originating from these platforms. This integration allows companies not only to meet customer expectations but also to surprise them with innovative and meaningful experiences.
Sustainability emerged as one of the central themes of the event in recent years. This trend reflects a definitive shift in consumer mindset. Younger generations, especially Gen Z and Alpha, prioritize brands that share their values, requiring a complete restructuring of retail operations, such as waste reduction—where sustainable packaging, recycling initiatives, and reuse programs are at the core of brand strategies—and eco-friendly products, as demand for local, organic, and plant-based items continues to grow, expanding the concept of conscious consumption beyond the food sector to include personal care and home goods. In this regard, those who can align sustainable practices with operational efficiency will lead the market and cater to a niche that continues to grow in retail.
Despite the rise of e-commerce, physical retail is reinventing itself as a space for connection and experimentation. Even with AI and new technologies, direct human interaction, personalized service, and customer engagement remain key competitive differentiators in brand-consumer relationships.
Here are two standout case studies. At American Girl (Mattel), doll customization not only enhances customer engagement but also increases the average ticket per visit. The brand invests heavily in building storytelling on social media, attracting younger audiences while also evoking nostalgia among adult customers. Meanwhile, Foot Locker’s investments in interactive technology and personalization for female consumers show how understanding evolving customer expectations can transform a business.
Physical stores now transcend the simple act of selling products, becoming touchpoints that create unique and memorable experiences.
NRF 2025 also addressed the economic and technological challenges the industry faces while highlighting promising opportunities. The challenges are inflation, technological disruption, and rising consumer expectations that increase pressure on retailers. As for opportunities, advanced personalization, driven by data and AI, and social commerce offer new ways to engage and retain customers.
The vision for the future
The future of retail will be defined by the ability to balance technological innovation with meaningful human experiences. Personalization will be a key competitive differentiator but must be accompanied by an ethical and transparent approach to data usage. Sustainability, innovation, and an unwavering focus on the customer will be central to successful strategies.
The importance of leadership within companies was also a key topic at the event. Building and maintaining a strong culture has become an imperative for the industry, with a focus on developing this culture through people—communicating and disseminating clear purposes and values within and outside companies.
Once again, we see how the major players in retail are aligned regarding the central role of people in business strategy. In this sense, service, customer experience, training, and behavior are recurring themes across different contexts.
NRF 2025 demonstrated that the retail sector is constantly evolving, and only those who embrace change with creativity, resilience, and purpose will succeed in an increasingly dynamic industry.
