The Future of Retail: Key Takeaways from National Retail Federation’s Retail’s Big Show 2025

Following a successful trip to New York for the National Retail Federation’s (NRF) annual event, PMC gathered retail leaders on this side of the Atlantic Ocean, for a post-event breakfast briefing and discussion of the key insights. The discussion, led by Alistair Edwards, Executive Director at The Estée Lauder Companies, and Simon Curtis, Chief Commercial Officer at PMC, explored key trends and innovations shaping the future of retail from NRF 2025. From AI integration and gamified loyalty programmes to merging hospitality and retail experiences, attendees discussed how the industry is adapting to a rapidly changing landscape. Here are the key takeaways.

Technological advancements transforming retail

The technology transformation within retail has accelerated significantly, with stores becoming increasingly tech-driven. One notable example discussed was the Dyson flagship store in New York, which has embraced a sleek, gallery-like design featuring wireless chargers on every showcase area and large media screens as part of its immersive experience.

Shelf-edge labelling has also seen a breakthrough, with electronic labels now powered entirely by store lighting – eliminating the need for batteries - using colour e-paper technology. In addition to smart labels, shelf-thickness media displays offer a cost-effective and flexible advertising solution, generating revenue from the brands retailers sell.

RFID technology finally appears to have been generically adopted across the retail spectrum of vendors. Low-cost RFID threads woven directly into products will begin to revolutionise stock management and enable circular retail models, making it possible to track an item throughout its entire lifecycle.

The prominence of AI

It was impossible to ignore AI’s presence at NRF, with every exhibitor showcasing some form of AI-driven solution. However, despite its growing adoption, AI has yet to deliver its full transformational potential. Retailers continue to face challenges in achieving accurate outcomes, particularly in data-intensive areas like stock management and staff scheduling.

There was a clear message that AI must evolve to become more intuitive and integrated, operating quietly in the background rather than as a front-and-centre selling point. Some promising developments were shared, including AWS’s demonstration of an AI-driven marketing tool capable of creating fully integrated campaigns across multiple channels in minutes with images and text for various visual formats.

Personalisation and gamification as growth drivers

Personalisation and customer engagement were recurring themes throughout the discussion. As automation and cost-cutting have impacted the in-store experience, many retailers are now focusing on bringing back meaningful customer interactions.

One standout example was the Canada Goose store in New York, where staff use radio communication to greet customers by name at different points in their journey through the store, creating a personalised and welcoming in-store experience.

Loyalty programmes are also evolving, with gamification emerging as a powerful driver of customer engagement. Recent insights revealed that 79% of consumers would shop more frequently if loyalty programmes were gamified, prompting retailers to explore creative ways to deepen customer relationships.

The power of cameras

The power of cameras in retail has become increasingly impressive, if you can point a camera at something (shelves, stock, people) you can monitor, track and report on it. Cameras are now being used to monitor product availability, and track food deterioration meaning retailers can change offers and implement markdown before product is unsaleable. Applications are also enhancing security by detecting potential threats.

A potentially compelling use cases is body scanning technology, which creates personalised avatars with precise body measurements. This technology offers customers exact size recommendations, significantly reducing return rates for retailers and enhancing the overall shopping experience for consumers. The technology is being adopted not only by clothing retailers but also by bed stores seeking to provide precise mattress fittings. Cameras are also transforming curbside collection, with automatic detection systems replacing the need for customers to phone in upon arrival.

Merging hospitality and retail experiences

The convergence of hospitality and retail was a new and emerging theme at NRF 2025. Brands are increasingly blending elements of both industries to create seamless customer experiences. One vendor was showcasing a Heinz’s interactive sauce dispenser, which allows customers to create their own unique sauce combinations. Robots delivering snacks and drinks to customers further highlighted the innovative possibilities that are starting to appear. As hospitality becomes more efficient, there is a growing focus on enhancing personalisation by drawing on lessons learned from retail.

Commercialising data and AI

Despite the excitement surrounding data and AI, the discussion acknowledged the challenges of commercialising these technologies. AI’s ability to rapidly prototype solutions was praised, but concerns were raised about its limitations when accuracy is critical and insufficient data is used. For instance, stock management and staffing decisions often require a high degree of precision, which AI struggles to achieve without robust data inputs. There is also a significant reputational risk if customer-facing AI implementations produce errors. The consensus was that clean, accurate data is essential for AI to deliver meaningful results.

Conclusion

The briefing concluded with a clear message - the retail industry is at a pivotal moment.

AI will become seamlessly integrated into operations, transforming processes and efficiency without being noticeable.

Camera-driven innovation will continue to enhance inventory management, security and personalisation.

The blending of hospitality and retail will redefine customer experiences.

Gamified loyalty and personalised interactions will drive deeper engagement.

As technology advances, retailers must strike a balance between operational efficiency and meaningful customer interactions to thrive in an increasingly complex landscape.

The breakfast briefing provided valuable insights and showcased the need for retailers to embrace innovation, collaboration and personalisation to navigate the complexities of a rapidly evolving market.

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