The future of retail: Key takeaways from NRF 2025

NRF’s Big Show, the world’s largest retail conference, has always been a pulse check for retail’s future, and this year’s event was nothing short of electric. Despite ongoing economic challenges, optimism and innovation took center stage, with AI leading the charge. From driving efficiencies and reducing costs to boosting sales and enhancing customer experiences, companies showcased how cutting-edge technologies are reshaping retail.
I was delighted to partner with Axonify, the leader in frontline learning, communication and task management, to moderate two Big Ideas sessions. In the first, I joined Knix—a trailblazing clothing tech brand—to discuss their rapid transition from D2C to omnichannel success. Pam Sharma, Director of Talent & Organizational Development, and Daniel Sinniah, VP of Retail, shared how their 14-store expansion has been fueled by AI-driven solutions that empower staff and elevate product knowledge.
In the second session, I spoke with Axonify CEO Carol Leaman about the urgent issue of customer incivility. We explored actionable strategies to help retailers equip their teams to handle this growing challenge, backed by research that shows the urgent need for frontline support.

After attending my twelfth NRF show, one thing is clear: retail’s future is bold, tech-driven and powered by the frontline. NRF 2025 was proof that the industry is ready to embrace what’s next.
Beyond the buzz
Artificial intelligence has moved beyond being a buzzword in retail. At NRF 2025, it was clear that it’s becoming a core enabler for smarter, more efficient and customer-centric retail operations. From intelligent inventory management to hyper-personalized marketing campaigns, these applications of AI were on full display.
Driving efficiencies through AI-powered operations
Streamlining operations, reducing waste, and boosting productivity are critical priorities for retailers navigating tight margins and high expectations. At NRF 2025, AI tools took center stage as powerful solutions to these challenges, demonstrating their ability to optimize processes and unlock new levels of efficiency.
- Predictive inventory management: AI-driven platforms can now analyze historical sales data, current market trends and even weather forecasts to optimize inventory levels. By reducing overstocking and understocking, these solutions help retailers save on storage costs and avoid lost sales due to out-of-stock items.
- Smart supply chains: Several exhibitors unveiled AI-powered supply chain solutions that use machine learning algorithms to predict disruptions and suggest alternative routes or suppliers in real time. This can significantly reduce delays and associated costs, ensuring that products reach shelves faster.
- Automation in-store operations: Robots equipped with AI are taking over mundane tasks like shelf scanning, stock replenishment and even cleaning. These innovations free up human employees to focus on higher-value activities, such as customer engagement.
Spotlight: Walmart’s AI-powered inventory system
Walmart demonstrated its AI-driven inventory system, which uses real-time data and machine learning to monitor stock levels and predict demand. This innovative approach has reportedly reduced stockouts by 30%, leading to improved customer satisfaction and higher sales.
Increasing sales with data-driven insights
Beyond optimizing operations, AI is revolutionizing how retailers drive sales by turning data into actionable insights. Several tools showcased at NRF 2025 highlighted AI’s potential to enhance revenue strategies:
- Dynamic pricing models: AI solutions can adjust prices in real time based on demand, competition, and other external factors. This approach maximizes revenue while ensuring competitive pricing that attracts customers.
- Personalized recommendations: AI-powered recommendation engines, as demonstrated by multiple exhibitors, analyze customer behavior across channels to deliver tailored product suggestions. By offering relevant options, these systems can significantly boost average basket sizes and conversion rates.
- AI-driven marketing campaigns: From crafting hyper-personalized email campaigns to optimizing digital ad placements, AI is empowering retailers to reach the right audience at the right time with the right message.
“AI isn’t just a tool; it’s the new language of retail. Those who adopt AI will not only survive but thrive by understanding their customers at a deeper level than ever before.”
-Laura Evans, Chief Innovation Officer, RetailNext
Enhancing customer experiences
Providing exceptional customer experiences has become essential for retailers looking to stand out in a crowded market. NRF 2025 highlighted how AI is equipping retailers to create personalized, seamless shopping journeys, helping them meet rising consumer expectations while fostering loyalty and long-term growth:
- Conversational AI and chatbots: AI-driven virtual assistants are becoming increasingly sophisticated, capable of answering customer queries, assisting with product selection and even completing transactions. These tools ensure 24/7 support and reduce wait times for customers.
- Immersive in-store experiences: Augmented reality (AR) and virtual reality (VR) experiences, powered by AI, are helping customers visualize products in their homes or try on virtual outfits. Retailers can use these technologies to create engaging and memorable shopping experiences.
- AI-enabled loyalty programs: By analyzing customer preferences and shopping habits, AI can create highly personalized loyalty rewards and incentives, driving repeat business and fostering long-term customer relationships.
Spotlight: Sephora’s AI-powered virtual try-on
Sephora showcased its virtual try-on technology, which uses AI to recommend products based on customers’ unique features and preferences. The tool has not only increased conversion rates but also enhanced customer satisfaction by providing a fun and interactive shopping experience.
A look ahead: The post-2025 retail landscape
With AI-driven innovations gaining traction, the retail industry is on the brink of a major transformation. Insights from NRF 2025 revealed several emerging trends that are set to redefine how retailers operate, engage customers and navigate the challenges of a rapidly evolving marketplace:
- Empowering retail staff: AI isn’t just for customer-facing applications; it’s also empowering employees. Tools like AI-driven training modules and just-in-time support are enabling retail staff to deliver better service with greater confidence.
- Sustainability through AI: Retailers are increasingly leveraging AI to minimize waste, optimize energy usage and create more sustainable supply chains. Solutions showcased at the event demonstrated how technology can help businesses achieve their environmental goals while improving profitability.
- Omnichannel excellence: AI is breaking down the barriers between online and offline shopping. By integrating data across channels, retailers can provide seamless experiences—whether a customer is browsing online, visiting a store or using a mobile app.
Challenges and opportunities
While the potential of AI in retail is immense, it’s not without challenges. Retailers must navigate issues like data privacy, integration with legacy systems and the ethical use of AI. However, these hurdles are not insurmountable, and the solutions presented at NRF 2025 demonstrated that the industry is well-equipped to address them.
The opportunities, on the other hand, are boundless. By embracing AI, retailers can not only drive efficiencies and reduce costs but also create a more personalized and enjoyable shopping experience for customers. As AI continues to evolve, it will undoubtedly play an even greater role in shaping the future of retail.
As we move forward, it’s clear that AI will be a cornerstone of retail success. For those ready to embrace this change, the future holds immense promise. Hesitation poses the risk of being left behind in an increasingly data-driven and customer-centric world.