Retailers faced a challenging year as economic factors, new technologies, and changing consumer behaviors reshaped the landscape.
Here are our top five stories from this past year and what they meant to a tumultuous industry.
How retailers can communicate with customers about tariffs: 7 key insights
Why it mattered: It was a challenging year for retailers and customers alike. How does one do damage control when the forces extend beyond any single brand or industry? In uncertain times, many retailers returned to foundational pillars of marketing: Communication, transparency, and tailored messaging.
Good practice throughout the year appeared to pay off when the holidays rolled around.
- 2025 Cyber Week reached a new high with $79.6 billion in US sales, up 5% YoY, according to Salesforce.
- US order volumes grew 1% YoY despite a 6% hike in average selling price, per Salesforce.
5 key stats on the rise of agentic AI in retail
Why it mattered: The paths to purchase are changing, and retailers need to be present in all places relevant to shoppers. Conversational searches with chatbots powered by large language models (LLMs) tend to be longer and more personalized. Users ask for shopping lists, sometimes based on budgets.
Some retailers are adapting by launching their own chatbots to match the agentic experience on their own sites. Meanwhile, ChatGPT and Amazon’s Rufus are pulling purchases into the chat. One indication of the scope of change? Retail media networks identify zero-click and genAI searches to be the top disruptor in the next 1-3 years, according to an August Bain & Company and EMARKETER survey.
Consumers reassess shopping habits as brands deliver muted DEI campaigns
Why it mattered: There was a price to pay when retailers and brands pull back on their espoused advocacy this year. The customers they intended to inspire with previous efforts noticed the shift in voice and values, and many voted with their feet.
As Target and others who backpeddled on DEI faced vocal economic boycotts, many consumers praised retailers like Costco who doubled down on their commitment to diversity. Meanwhile, Gen Z made its preference known to side with brands who align with their values.
Brands lean into multisensory marketing as consumers keep spending on fragrance
Why it mattered: This year, consumers took time to smell the roses, and other notes. Fragrances drew attention, and men' s fragrances gained momentum. Retailers staged in-store multisensory experiences for customers who needed a break from their phones. And scents were oftentimes part of that experience.
Retailers also leaned into social media to find the sweet smell of success. Being relevant on #FragranceTok was key for Axe this year. Whether online or out in the world, brands are connecting with customers with multisensory appeals.
The brewing beauty battle between Walmart, Amazon, and Target
Why it mattered: For retail giants, beauty is big business, and a clear battleground. Customers’ interest in trying out products, in-store and virtually, makes beauty a key attraction in driving traffic.
- Amazon’s share of US beauty and cosmetics ecommerce sales (31.1%) is expected to peak in 2025, per a May EMARKETER forecast.
- Mass retailers were the top choice among US beauty buyers, with 79.4% saying that’s where they typically made their in-store purchases and 79.8% citing its where they typically purchase online, according to a June EMARKETER survey.
Walmart, Amazon, and Target all improved their beauty offerings this year. Target added nearly 2,000 new beauty products in February. Walmart launched 40 Beauty Bar pop-ups during its spring Beauty Event. Amazon added more premium brands, and featured brands like Armani Beauty and Kiehl’s in its third-annual Summer Beauty Event.
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