As 2025 unfolds, shoppers are navigating a complex retail landscape shaped by economic uncertainty, changing habits, and new brand successes. From the rise of online shopping to the decline of certain stores, understanding these trends can help consumers and retailers alike stay ahead. Curious about what products are in demand, which brands are thriving, and how economic worries are influencing shopping habits? Keep reading for insights into the latest consumer behaviors this year.
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Are people shopping more online or in stores?
In 2025, online shopping continues to grow, driven by e-commerce giants like Walmart, which reports strong sales and a boost from affluent shoppers. While some traditional stores face challenges, many consumers prefer the convenience of shopping from home, especially during the holiday season. However, brick-and-mortar stores still hold importance for certain products and experiences, creating a mixed retail environment.
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What products are in demand right now?
Demand is high for luxury and premium products, especially in the US, where brands like Watches of Switzerland see significant growth. Consumers are also investing in home improvement, although some chains like Home Depot are cautious due to economic worries. Meanwhile, discount retailers like Poundland are restructuring, closing stores to focus on profitability, reflecting shifts in consumer spending.
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How are economic worries changing shopping habits?
Economic uncertainty is making shoppers more cautious, leading to reduced foot traffic in some stores and a focus on value. Retailers like Poundland are closing unprofitable locations, and others are investing carefully to adapt to the cautious spending environment. Consumers are prioritizing essential and high-value items, while luxury brands continue to perform well among wealthier shoppers.
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Which brands are winning in 2025?
Brands like Walmart and Watches of Switzerland are seeing success, thanks to strong e-commerce growth and international demand. Walmart has raised its sales forecast, driven by affluent shoppers and online sales, while Watches of Switzerland benefits from US demand and tariff relief. Conversely, some UK retailers like Frasers Group face sales declines domestically but are expanding internationally.
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Are retail store closures increasing?
Yes, store closures are happening across the retail sector. Poundland plans to shut over 100 UK stores to improve profitability, and other chains are downsizing or restructuring. These closures are part of broader efforts to adapt to economic pressures and changing consumer habits, with a focus on maintaining core profitable locations.
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What does the future hold for retail in 2025?
The retail landscape in 2025 is characterized by a blend of online dominance, strategic store closures, and a focus on high-value products. Retailers are navigating economic headwinds by adjusting their strategies, investing in international markets, and emphasizing value for consumers. The winners will be those who can adapt quickly to these shifting trends and consumer preferences.