The NRF 2025 Big Show, held in New York, reaffirmed its relevance as the primary global stage for discussing trends and innovations shaping the global retail industry. Over the days of January 12, 13, and 14, executives, CEOs, and sector leaders shared their strategies, challenges, and visions that are redefining the market. From the perspective of retail and franchising leadership, I will explore below the learnings and standout cases from the global event and the lessons that can impact the retail sector in the long run.
Artificial Intelligence (AI) continues to be the driving force behind transformation in retail. Companies like Amazon and Walmart showcased how AI is being used to revolutionize processes, enhance customer experience, and optimize operations.
At Amazon, AI is integrated across various fronts, from the conversational shopping assistant Rufus, addressing complex consumer queries, to logistics enhanced by mobile robots and analytical systems highlighting the key pros and cons of products. Meanwhile, at Walmart, partnerships with technology companies like NVIDIA are enabling the use of digital twins to predict demands, optimize stocks, and even simulate store layouts. The efficiency isn’t just operational but strategic, creating smarter and more connected stores.
This extensive use of AI positions the technology as essential to meeting the rising demands for personalization, agility, and efficiency.
The NRF 2025 also made it clear that omnichannel is no longer an option but a necessity for retailers wishing to stay competitive. Practical examples reinforcing this idea underscore the importance of integrated strategies focusing on traffic to physical stores, which play an increasingly central role in the customer’s product experience and brand relationship.
Two key insights on this are: hybrid stores, integrating physical and digital, where retailers offer a seamless experience that combines 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 topics of the event in recent years. This theme reflects a definite shift in consumer mindset. The new generations, especially Z and Alpha, prioritize brands that share their values, necessitating 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 items continues to grow, expanding the concept of conscious consumption beyond the food sector and encompassing personal care and home items. In this sense, those who can combine sustainable practices with operational efficiency will be ahead of the market and can cater to a niche that is only growing in the retail sector.
Despite the advancement of e-commerce, physical retail reinvents itself as a space for connection and experimentation. Even with AI and new technologies, direct customer contact, with personalized and humanized service, remains a competitive differential and relevant for the brand-consumer relationship.
I bring two cases that stood out in this regard. In the case of American Girl (Mattel), doll customization not only enhances customer engagement but also the average ticket per visit. The brand heavily invests in building storytelling on social media, attracting the younger audience and also evoking nostalgia in adult customers. On the other hand, Foot Locker’s investments in interactive technology and customization for the female audience demonstrate how understanding the evolution of 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 industry while highlighting promising opportunities. The challenges include inflation, technological disruption, and growing consumer expectations that increase pressure on retailers. In terms of opportunities, advanced personalization, driven by data and AI, and social commerce offer new ways to engage and retain consumers.
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 one of the main competitive differentiators but must be accompanied by an ethical and transparent approach to data usage. Sustainability, innovation, and an unwavering focus on the customer will be at the core 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 in the sector, focusing on developing this culture through people, communicating and disseminating clear purposes and values both inside and outside the companies.
Once again, we see how major retail players align regarding the prominence of people in business strategy. In this sense, customer service, customer experience, training, and behavior are words that are repeated in various contexts.
NRF 2025 demonstrated that the retail sector is constantly evolving, and only those who embrace changes with creativity, resilience, and purpose will succeed in an increasingly dynamic sector.
