Conclusion

What you need to do now

It has been a turbulent time for retail over the past decade. Unexpected crises brought about by global events combined with a tough economic landscape in the last two years, making it very unlike the previous decade, have been challenging.

Yet, still the industry looks forward and seeks new ways to grow – and so many of the leaders in the sector remain upbeat and confident about driving greater revenues year on year by forging fresh strategies and embracing new technology.

Perhaps the retailers that have survived the choppy waters of the last decade, which have sunk titans of retail yesteryear such as Arcadia, think that if they can survive this, they can survive anything. Or perhaps the retailers alive and kicking today are there through strong leadership and the ability to be flexible. It is probably a mixture of these factors.

Either way, there is much to play for in the year ahead. And the retailers that do not rest on their laurels will be the ones we are talking positively about in 12 months’ time when we come to map out Retail 2026.

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1. Be cautiously optimistic

The future economic indicators are more positive compared with 12 months ago, and that should encourage (and is encouraging) retailers to plan for growth. But the last few years will have taught leaders that the next crisis could be just around the corner, so it is crucial to proceed with caution and to manage investments and budgets wisely.

2. Don’t underestimate the power of stores

Like last year, even some of the digitally native retailers are investing in opening stores, and they understand the importance of a physical point of contact with the customer. Even though ecommerce is taking a bigger share of total sales and should be invested in, so much of what makes a good retailer in 2025 rests on how its stores provide differentiation and support digital propositions.

3. Embrace AI to keep up

Most retailers are using AI in some form to help speed up processes, crunch data quicker and generally optimise operations. Those not trialling AI deployment are going to be left behind pretty quickly.

4. View technology as a future-proof factor

Although it is the buzz phrase of the moment, AI is not the only tech consideration. Forward-thinking retailers have realised that tech investment behind the scenes on warehousing, distribution and infrastructure, and not just on the shiny new things to attract customers to their brand, is essential for setting up a business for long-term, sustainable growth.

5. Develop a more purposeful approach

If a retailer is not working on ways to be a better citizen of the planet, and not building ways to boost diversity and inclusion across its organisation, it is in the minority. This will leave it out of favour with consumers and employees, and facing an uphill battle to continue driving growth in the future.