5 Big Ideas that will change retail in 2025

As another milestone year for retailers comes to a close, it’s time to look ahead and consider what the next 12 months hold for the industry. Which trends will redefine how stores operate, and which have exceeded their shelf life?

Last year, we anticipated shifts like the demise of traditional checkout queues and the rise of branding among sports teams (anyone catch that Tottenham Hotspur overhaul last month? 👀).

Looking ahead to 2025, the conversation turns to a new set of transformative changes, from a dramatic rethinking of food packaging in supermarkets to a possible end to greenwashing and a new dawn for shop window displays.

Read all our predictions below, and be sure to pitch in with the big ideas you believe will shake things up in this sector next year. – Aaron Toumazou

The global edible packaging market is projected to reach around $1.28bn by 2030, growing at a compound annual growth rate of 5.4%. While much of the innovation in this space has so far occurred behind the scenes, rising pressure on retailers to eliminate single-use plastics could make 2025 the year edible packaging finally hits supermarket shelves.

The most viable option? Seaweed, like the wraps from UK-based Notpla . "Seaweed is not only abundant but incredibly biodegradable, and when processed, it forms a natural polymer that can be turned into a film or pouch,” explains packaging director Lisa Cain . "These wraps protect the food, function as a moisture barrier, and – if the mood strikes – can be eaten … You can even infuse packaging with vitamins or create barriers that actively protect food from spoilage."

Cain notes that consumer attitudes have shifted dramatically in the last few years, particularly among gen Z and millennials. With the right blend of strategic marketing and educational campaigns to build trust, supermarkets are well-positioned to embrace edible packaging as the next game-changer for sustainable shopping.

Logistical challenges facing grocers are also being addressed. Food safety regulations and environmental sensitivities like temperature and moisture have presented real hurdles, but solutions are emerging rapidly. Secondary protective layers, akin to the paper wrapping around an ice cream cone, ensure durability during transit.

Meanwhile, smart IoT sensors – already in use on some plastic packaging – could provide critical support, improving stock tracking, rotation and shelf-life management to ease the integration of edible alternatives. 

Author: Aaron Toumazou , retail editor at LinkedIn News

💡 How could edible packaging impact consumer habits? Share your thoughts in a post using the hashtag #BigIdeas2025

Greenwashing is getting an AI auditor – and it's transforming retail's sustainability claims forever.

Brands are increasingly under scrutiny for greenwashing or making overstated claims about sustainability. But with the advent of new AI systems, this issue can now be tackled head-on. 

These AI agents are expected to contribute significantly to the global economy, with projections indicating an addition of $15.7tn (€15tn, £12.4tn) to global GDP by 2030.

Agentic AI empowers brands to deliver transparency and factual clarity in content, ensuring sustainability claims are backed by data and not by marketing spin. By providing real-time insights and automated checks, agentic AI reduces the risk of reputational damage, making it nearly impossible for brands to be caught out on greenwashing claims.

Beyond risk management, agentic AI also unlocks massive operational efficiencies. Tasks that previously required significant resources can now be automated, freeing up people that were once stretched. If used correctly, this means brands can finally consider projects that had been sidelined for lack of time or budget – particularly those ESG (environmental, social and governance) initiatives that often struggle to get off the ground.

As agentic AI scales across the retail sector, we’ll see a shift. Projects once seen as "nice-to-have" ESG investments can now become viable and strategically important. Retailers will not only maintain transparency but will also gain the agility to prioritise projects with long-term social and environmental impact, creating a sustainable brand reputation that goes beyond words. 

With agentic AI, it's a brighter future as retail can be both more efficient and authentically responsible. 

Author: Matt Parry, CEO of The Future Collective®

💡 In what ways do you see brands utilising AI to fine-tune and improve their ESG messaging? Share your thoughts in a post using the hashtag #BigIdeas2025

The retail sector has been coming to terms with consistently slower sales volume growth than it was once used to, prompting a shift toward new key performance indicators (KPIs) that emphasise long-term profitability over short-term sales benchmarks.

Retail consultant Mairi Fairley highlights the increasing importance of customer engagement and ecosystem interactions, for instance, which "puts the emphasis much more on the health and profitability of a business than on revenue or top-line growth," she explains. Metrics like retention rates, customer lifetime value and cohort performance will become pivotal as retailers prioritise cultivating loyal, high-value customers over chasing one-off transactions.

This will bring a more radical evolution in the way retailers evaluate engagement, Fairley notes, striving to more accurately track interactions and behaviours across different channels. This includes the frequency and quality of interactions – whether online, in-store or across broader brand touchpoints. Advancements in data tools and AI integration will bridge existing gaps in tracking capabilities, empowering store teams with actionable insights.

Loyalty programmes will also evolve, moving beyond traditional points systems toward creating a sense of belonging within a brand’s community. Personalised perks, exclusive events and unique access opportunities will replace generic rewards to foster deeper customer connections, "even when they’re not going to buy", Fairley notes.

Here's where physical stores will become a more crucial part of the picture, but they’ll take on more nuanced and tailored roles, predicts Fairley. Expect a mix of flagship experiential spaces, convenience-focused outlets, discovery or returns hubs and third-party collaborations to meet different customer needs.

So retailers are ready to embrace a new way of evaluating success – are shareholders?  Earnings reports will likely begin to emphasise long-term health indicators over short-term metrics like weekly, monthly or quarterly sales. Fairley suggests they'll focus on answering questions like: "What do the customer cohorts tell us?" and "Do we have positive or negative momentum?"

"I think we'll see a shift into this slightly longer term view, accepting there might be a little bit more volatility in the immediate term," she concludes. 

Author: Aaron Toumazou , retail editor at LinkedIn News

💡 How do you think retailers can best track performance in 2025 and beyond? Share your thoughts in a post using the hashtag #BigIdeas2025

Digital shop window displays are evolving from simple product showcases into powerful storytelling tools, enhancing the experience factor of brick-and-mortar stores. By 2025, this technology will shed its reputation as a flashy merchandising gimmick and find deeper ways to drive business impact.

Today’s digital windows already go beyond capturing attention, sparking curiosity and encouraging interaction. Experiential retail expert Tim Nash , a department head at creative agency IPOS , describes them as "portals that blur the lines between the digital and physical worlds", designed to draw passersby into a brand’s narrative. Luxury players like Gucci, Moncler and Louis Vuitton are leading the charge, blending technology with artistry to create immersive journeys, while Flannels X on Oxford Street transforms store architecture into interactive art.

Looking ahead, the potential for innovation is immense, says Nash. "Digital windows can become reactive environments that respond to weather, foot traffic or even the time of day," he notes. With AI and real-time data integration, they can deliver personalised experiences, tailoring recommendations to individual tastes. "A window that says, 'Hey, this coat would look amazing on you', feels personal, engaging and impossible to ignore," Nash adds.

Rather than replacing traditional merchandising, Nash predicts digital displays will amplify it. Combining physical and digital elements will bring store windows to life, making displays dynamic and relevant. A simple mannequin, for instance, can showcase a jacket in motion, highlighting its features while showcasing its style and utility in real time.

Increasingly available augmented and virtual reality tech will also play a key role in 2025, enabling customers to step into a brand's universe and explore products interactively, "like stepping into a storybook, but cooler," Nash explains. 

"I truly believe that we’re in the middle of a window display renaissance," he continues. "Brands are waking up to the chance to turn their windows into something much more exciting, unique and engaging."

Author: Aaron Toumazou , retail editor at LinkedIn News

💡 How do you see digital displays evolving in different categories? Share your thoughts in a post using the hashtag #BigIdeas2025

People are increasingly longing for the "good old days". According to a Pew Research report, many in developed nations including the US, France and Japan believe life is worse now than it was 50 years ago, citing economic uncertainty, political polarisation and social fragmentation. However, what sets today’s nostalgia apart is its reinvention for modern audiences – and how it elevates timeless classics rather than just old successes.

Take British rock band Oasis. Despite ranking below the top 200 artists on Spotify , their return after 15 years sold out tickets immediately, tapping into nostalgia and the current appetite for live experiences. Similarly, HBO is reviving Harry Potter with a series that stays close to the books while introducing inclusive casting, ensuring the story resonates with today's audience and solidifying its place as a cultural cornerstone.

Outside entertainment, brands like Renault are also modernising classics. The relaunch of its iconic R4 retains its beloved design but transforms it into a fully electric car, aligning with sustainability goals. These efforts don’t just revisit the past; they redefine these icons for the future, ensuring their continued relevance.

Why this trend? Marketing expert Paco Lorente explains: "In moments of longing, we turn to decisions we made in the past that proved successful." 

Sociologist Alejandra Nuño goes further: "There’s hope in doing things better," she says. This approach builds on the enduring appeal of classics, transforming them into symbols of continuity and innovation.

Author: Ana Muñoz Vita , editor at LinkedIn News 

💡 Is "Nowstalgia" here to stay? Share your thoughts in a post using the hashtag #BigIdeas2025

What prediction or trend do you expect to have the biggest impact in the year ahead? And why? Share your thoughts in the comments or by posting a video with #BigIdeas2025.