The NRF 2025 Big Show, held in New York, reaffirmed its relevance as the leading global stage for discussing trends and innovations shaping the global retail industry. During January 12th, 13th, and 14th, 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 the key learnings and case studies that stood out at the global event, and lessons that can impact retail in the long term.
Artificial intelligence (AI) continues to be the driving force behind transformation in retail. Companies like Amazon and Walmart have demonstrated how AI is being used to revolutionize processes, improve customer experience, and optimize operations.
At Amazon, AI is integrated across various fronts, from the Rufus conversational shopping assistant, which answers complex consumer questions, to logistics enhanced by mobile robots and analytical systems that highlight the main pros and cons of products. At Walmart, partnerships with technology companies like NVIDIA are enabling the use of digital twins to predict demand, optimize inventory, and even simulate store layouts. The efficiency is not only operational but also strategic, creating smarter and more connected stores.
This comprehensive use of AI positions the technology as essential to meeting the growing demands for personalization, agility, and efficiency.
NRF 2025 also made it clear that omnichannel is no longer an option, but a requirement for retailers who want to remain competitive. Practical examples that reinforce this idea highlight the importance of integrated strategies that focus on traffic to the physical store, which is taking on an increasingly central role in the customer's experience with the product and in the relationship with the brand.
Two key insights into this are: hybrid stores, integrating the physical and digital worlds, where retailers offer a seamless experience combining convenience and personalization; and social commerce, where platforms like TikTok and Instagram are increasingly relevant for driving 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 has emerged as one of the central themes of the event in recent years. This theme reflects a definitive shift in consumer mentality. New generations, especially Gen Z and Gen Alpha, prioritize brands that share their values, and this requires a complete restructuring of retail operations, such as waste reduction, where sustainable packaging, recycling initiatives, and reuse programs are at the heart of brand strategies; and eco-friendly products, as the demand for local, organic, and plant-based grows continuously, expanding the concept of conscious consumption beyond the food sector and encompassing personal care and household items. In this sense, those who manage to combine sustainable practices with operational efficiency will be ahead of the market and can cater to a niche that is only growing 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 contact with the customer, with humanized and personalized service, remains a competitive differentiator and of relevance to the relationship between brand and consumer.
I'll present two case studies that stand out in this regard. In the case of American Girl (Mattel), doll customization not only increases customer engagement but also the average ticket price per visit. The brand invests heavily in building storytelling on social media, attracting younger customers and also evoking nostalgia in adult customers. In the case of Foot Locker, investments in interactive technology and personalization for a female audience show how understanding evolving customer expectations can transform a business.
Physical stores now transcend the simple act of selling products, becoming points of contact that create unique and memorable experiences.
NRF 2025 also addressed the economic and technological challenges facing the sector, while highlighting promising opportunities. The challenges include inflation , technological disruption, and rising consumer expectations, which increase pressure on retailers. Regarding opportunities, advanced personalization, driven by data and AI, and social commerce offer new ways to engage and retain consumers.
A vision for the future
The retail of the future will be defined by the ability to balance technological innovation with meaningful human experiences. Personalization will be a key competitive differentiator, but it must be accompanied by an ethical and transparent approach to data use. Sustainability, innovation, and an unwavering focus on the customer will be at the heart of successful strategies.
The importance of leadership within companies was also a prominent topic at the fair. Creating and maintaining a strong culture has become an imperative for the sector, with a focus on developing this culture through people, communicating and disseminating clear purposes and values inside and outside the company.
Once again, we see how the major players in retail are aligned regarding the leading role of people in business strategy. In this sense, customer service, customer experience, training, and behavior are words that are repeated in 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.
