Executive Summary

Retail’s Big Show, hosted annually by the National Retail Federation (NRF), is the premier global retail event, bringing together over 6,000 brands in New York City for three dynamic days of learning, collaboration, and discovery.

NRF 2025 set new benchmarks, uniting more than 40,000 retail professionals from over 100 countries and featuring 900+ exhibitors. The event spotlighted cutting-edge innovations and hosted transformative keynote sessions, offering insights into the industry's trajectory and strategies for thriving in a rapidly evolving landscape. Key themes revolved around sustainability, AI-driven personalization, and omnichannel excellence, with leading voices and organizations driving the discussions.

Overarching Trends

. Sustainability as a Strategic Imperative for Brands like IKEA and Patagonia showcased innovative approaches to eco-friendly operations, circular economy models, and transparent supply chains, emphasizing sustainability as a core priority.  This shift is driven by growing consumer demand for responsible practices and regulatory pressures on environmental impact.

. AI Transforming Retail is driving advancements in customer interactions, supply chain optimization, and personalization, with scalable applications like demand forecasting, chatbots, and recommendation engines. Retailers highlighted the ability of AI to enhance decision-making, reduce costs, and create tailored experiences at unprecedented scale.

. Seamless Omnichannel Experiences Retail leaders such as Starbucks, Target, and Shopify highlighted technologies delivering frictionless customer journeys, from advanced inventory management to immersive mobile and in-store experiences.These innovations ensure that brands meet customer expectations for consistency and convenience across all touch points.

Retail’s Big Show 2025: A Glimpse into the Future of Retail

The National Retail Federation’s (NRF) 2025 conference, held in New York City, brought together leaders, innovators, and retailers from around the world to explore the trends shaping the future of retail. With retailers reporting a surge in sales and renewed confidence, the event showcased the industry’s strong recovery and its readiness to embrace transformative changes.

This year’s conference featured an impressive lineup of speakers, including:

▪️Alex Rodriguez, CEO and Chairman of A-Rod Corp

▪️Dylan Lauren, Founder & CEO of Dylan’s Candy Bar

▪️Tommy Hilfiger, Founder & Principal Designer of Tommy Hilfiger Global

▪️John Furner, President & CEO of Walmart U.S.

Their insights provided valuable perspectives on leadership, innovation, and growth in an evolving retail landscape.

A recurring theme throughout the event was the emphasis on exceptional customer experiences. Brands showcased how AI-powered personalization and immersive in-store technologies are redefining consumer interactions. By creating unforgettable, loyalty-building experiences that go beyond transactions, retailers are deepening connections with their customers and differentiating themselves in a highly competitive market.

Productivity through data also emerged as a key focus. Real-time analytics have become indispensable for optimizing inventory, streamlining supply chains, and improving store operations. By transforming data into actionable insights, retailers are boosting efficiency and staying agile in a dynamic marketplace.



Another hot topic was the transformative potential of generative AI. From creating hyper-personalized marketing campaigns to enabling automated customer interactions, generative AI is reshaping how retailers engage with their audiences and run their operations. The technology promises to unlock new opportunities in customer engagement, product innovation, and workforce automation, ushering in a new era of retail intelligence.



The NRF’s Big Show continues to serve as a vital platform for exploring the innovations and strategies driving the industry forward.

Retail Trends at NRF 2025

Sustainability in Retail

Sustainability has become a strategic pillar for retailers aiming to balance profitability with environmental responsibility. At NRF 2025, leading brands showcased how adopting sustainable practices not only mitigates environmental impact but also reduces operational costs and fosters stronger customer loyalty. Key initiatives included innovations in achieving carbon neutrality, transitioning to circular economy models, and designing supply chains with sustainability at their core.

Concrete Use Case
IKEA’s Renewable Packaging Initiative

IKEA’s shift to renewable packaging materials reduced logistics costs by 18%, supporting its goal of carbon neutrality by 2030. This move not only cuts waste but also aligns with the growing demand for sustainable practices across supply chains.

Patagonia’s “Worn Wear” Resale Platform

Patagonia’s “Worn Wear” platform, which allows customers to buy and sell used gear, increased revenue by 25%. This circular model reduces waste and highlights the profitability of sustainable business practices, meeting consumer demand for eco-conscious products.

Key Statistic: By 2025, 67% of global consumers will prioritize eco-friendly brands, creating significant demand for retailers to embed sustainability across their offerings.

Takeaway: Sustainability is no longer a “nice-to-have” but a competitive differentiator, with brands that lead in this space positioned to capture market share and secure long-term growth.

AI & Personalization

Artificial Intelligence (AI) is fundamentally transforming the retail landscape by providing deeper customer insights, streamlining supply chains, and enabling hyper-personalized shopping experiences. At NRF 2025, AI’s role in reshaping retail was front and center, with a focus on its ability to drive smarter operations and create tailored customer interactions through technologies like predictive analytics and generative AI. Retailers are leveraging AI to anticipate customer needs, optimize inventory, and offer individualized experiences, ultimately improving both operational efficiency and customer satisfaction.

Concrete Use Case
Walmart’s AI-powered Demand Forecasting Tool

Walmart’s AI-driven demand forecasting system has successfully reduced overstock by 15%, resulting in millions of dollars saved annually. By using predictive analytics to more accurately forecast consumer demand, Walmart has minimized excess inventory, reduced waste, and optimized supply chain operations.

Sephora’s AR-powered Modiface Tool

Sephora’s Modiface, an augmented reality (AR) tool, enables customers to virtually try on products, leading to a 20% increase in online conversions and a 12% decrease in returns. By combining AI with AR, Sephora delivers a more engaging and personalized shopping experience, helping customers make confident purchasing decisions without physical trials.

Tech Companies Mentioned:

- NVIDIA (AI hardware solutions)

- OpenAI (chat-driven personalization)

- Salesforce (CRM integration for enhanced customer data management)

Seamless Omnichannel Experiences

In today’s retail landscape, customers expect frictionless shopping journeys that bridge online and offline channels. NRF 2025 highlighted omnichannel innovations, with tech integration enhancing customer experiences and advancements in apps, in-store tech, and logistics redefining satisfaction and loyalty.

Notable Speakers: Insights from leaders of Amazon, Walmart, Meta, and Salesforce.

Starbucks reported 50% of its orders now come from its mobile app, powered by AWS cloud solutions.

Key Prediction: By 2028, 90% of retailers will integrate mobile apps and in-store tech for seamless experiences.

Innovations and Solutions Spotlight

The Innovations and Solutions Spotlight at NRF 2025 showcased transformative technologies and creative strategies reshaping the retail industry. Through live demos and interactive displays, retailers and tech providers presented solutions to tackle key challenges, focusing on operational efficiency and enhancing customer experiences.

NRF 2025 Innovators Showcase

The Innovators Showcase stood out as a hub of inspiration, featuring the top 50 retail tech pioneers selected for their groundbreaking contributions to the industry. Attendees experienced firsthand the impact of innovations such as robotics, artificial intelligence (AI), augmented reality (AR), and the Internet of Things (IoT).

Key focus areas

The NRF 2025 Innovators Showcase underscored the critical role of emerging technologies in the evolution of retail. These innovations are not just enhancing operational efficiencies but are also driving deeper customer engagement and supporting sustainability goals. As the industry continues to embrace these advancements, retailers who invest in these technologies will be well-positioned to lead in an increasingly competitive and environmentally-conscious market.

Retailer Benefits of Innovations

Retailers visiting the Innovations and Solutions Spotlight left with actionable insights and a clear understanding of the technologies that could bring the following benefits:

Retailers who embrace these innovations gain a competitive edge by optimizing their operations, enhancing customer experiences, and driving profitability. From automation and AI to omnichannel integration and sustainability, these technologies are reshaping how retailers engage with consumers and streamline their business processes. At the same time, they enable retailers to meet evolving consumer demands for personalized experiences, faster deliveries, and more sustainable practices.

By adopting these innovations, retailers can not only improve their operational efficiency and reduce costs but also respond more effectively to shifts in the market and consumer behavior. Retailers who strategically leverage technology are poised to build stronger customer relationships, create new revenue streams, and future-proof their businesses in an increasingly digital and competitive landscape. It brings benefits not only to customers but also to employees. For customers, technology enhances personalization, convenience, and efficiency, creating a seamless shopping experience. AI-driven recommendations, fast order fulfillment, and sustainable options make shopping more enjoyable and meaningful.

At the same time, employees benefit from automation and streamlined processes that reduce manual tasks, boost productivity, and improve job satisfaction. Ultimately, innovation creates a satisfying experience for both customers and employees, fostering a more connected retail environment.

Examples of Innovators

The Innovators Showcase featured the top 50 retail tech pioneers, highlighting groundbreaking innovations like robotics, AI, AR, and IoT.

Figures and Market Insights

The Figures and Market Insights section of NRF 2025 provided attendees with critical data points and trend analyses, offering a clear picture of the retail industry’s trajectory. By examining growth metrics, technological adoption rates, and investment flows, this segment empowered retailers to make informed decisions and stay ahead in an evolving landscape.

Industry Data

Investment Trends

Key Insights for Retailers

With data-driven insights into evolving consumer behavior, shifting market dynamics, and the rise of new technologies, retailers can make informed decisions that help them stay competitive. By leveraging these insights, businesses can better navigate industry challenges, capitalize on emerging opportunities, and implement strategies that drive sustained growth. Retailers are increasingly required to adapt quickly to changes in consumer expectations, technological advancements, and economic conditions.

Key Takeaways:

- Consumer Behavior Shifts: Consumers increasingly seek personalized, sustainable, and digital-first experiences, requiring retailers to adapt quickly to these expectations.

- Technology Adoption: Embracing AI, automation, and immersive technologies enhances efficiency and creates engaging, innovative customer experiences.

- Sustainability and Corporate Responsibility: Sustainable practices are becoming a key factor in consumer decisions, making it essential for retailers to prioritize eco-conscious initiatives.

Salesforce

Salesforce empowers retailers with AI-driven personalization and seamless omnichannel strategies to meet evolving consumer demands. BayBridgeDigital enhances this impact by delivering tailored solutions that optimize operations and drive sustainable growth.

Salesforce Contributions at NRF

Partner Collaborations

Salesforce’s collaborations with leading tech and service providers like Bayretail or BayBridgeDigital, were another highlight of NRF 2025, reflecting its commitment to delivering comprehensive solutions for retailers.

Partnerships driving innovation
Retail Ecosystem Development

Salesforce also demonstrated its commitment to empowering smaller retailers by fostering partnerships with startups specializing in AI and sustainability solutions. These partnerships made new  technologies accessible to businesses of all sizes, creating an inclusive retail ecosystem.

Strengthening Retailers Through Salesforce Solutions

BayBridgeDigital plays a pivotal role in helping retailers harness the full potential of Salesforce’s suite of tools. Combining expertise in digital transformation and Salesforce implementation, we help retailers clients achieve personalization, efficiency, and innovation.

Retail Cloud : POS Software

At NRF 2025, cloud-based Point-of-Sale (POS) software emerged as a critical technology enabling retailers to meet the demands of modern consumers. By integrating seamlessly with omnichannel strategies, cloud POS systems are redefining the shopping experience, offering retailers the agility needed to stay competitive.

Enhanced Operational Efficiency

Cloud POS systems streamline checkout processes, simplify inventory management, and provide real-time data insights. These capabilities empower retailers to reduce operational costs, increase sales, and enhance the customer experience. The ability to manage transactions from any location ensures that retailers can operate more flexibly while maintaining high levels of customer service. With centralized data management, businesses can monitor sales performance across multiple locations in real time, allowing for quicker, more informed decisions. The scalability of cloud systems also ensures that retailers can easily adapt as their business grows, without the need for extensive infrastructure changes.

Transforming the Customer Experience

Beyond transactions, cloud-based POS systems enable personalized interactions, offering features like Buy Online, Pick Up In-Store (BOPIS), and targeted promotions. By leveraging real-time data, these systems allow retailers to meet consumer expectations for fast, tailored services, improving satisfaction and fostering loyalty Cloud POS also supports customer engagement by storing purchase history, preferences, and feedback, allowing for a more individualized shopping journey. This level of personalization not only enhances the experience but also drives repeat business, as customers feel recognized and valued.

Bayretail: Empowering Retailers

Bayretail and Salesforce Retail Cloud together provide a comprehensive solution that enhances retail operations and customer engagement. Bayretail’s clienteling platform seamlessly integrates with Salesforce Retail Cloud, offering advanced features that empower store associates to deliver personalized experiences and streamline processes.

Key Features of Bayretail’s Clienteling Solution:

Clientbook Management: Store associates can efficiently search, create, update, and track customer information, facilitating personalized interactions and fostering loyalty.

360° Customer Profiles: By consolidating data from various touchpoints, associates gain comprehensive insights into customer preferences and behaviors, enabling tailored assistance and improved service.

Appointment Management: The platform allows for seamless scheduling and management of both physical and virtual appointments, enhancing the customer experience and ensuring timely engagements.

Integration with Salesforce: Built on the Salesforce platform, Bayretail ensures a unified approach to customer relationship management, streamlining operations and enhancing data accessibility.

By leveraging these features, retailers can enhance their clienteling efforts, leading to increased sales, improved customer satisfaction, and streamlined store operations. This synergy between Bayretail and Salesforce Retail Cloud enables retailers to enhance customer satisfaction, increase sales, and achieve operational excellence.

Case Studies:

LANVIN

Lanvin, the French Luxury House known as a beacon of Parisian luxury, from fashion to perfume through  accessories,  is  partnering  with Bayretail  to  expand  its  omnichannel  customer experience within their European and US stores. With Bayretail’s solutions, retail associates can use  simple  mobile  applications  to  communicate  with,  and  gain  a  full  view  of,  their  customers providing personalized and engaging shopping experiences across all retail platforms.

FAST RETAILING

Comptoir des cotonniers, acquired by Fast Retailing in 2005, is a  Bayretail success story. Comptoir des Cotonniers has successfully deployed the Bayretail Store App for Salesforce Commerce Cloud, giving associates a comprehensive view of customers, products and inventory. With the Clienteling Campaign module, the headquarters is able to push lists of customers to be contacted to the store associates who now have the information and tools to communicate with their customers. Additionally, associates can now scan a barcode to see if the product is available online, access all customer information including promotions and place orders.

Databricks

Databricks continues to play a pivotal role in transforming the retail industry through its unified data analytics platform. By combining data engineering, data science, and AI, Databricks empowers retailers to harness vast amounts of data for smarter decision-making, personalized customer experiences, and optimized supply chains.At NRF 2025, Databricks showcases advancements in AI-driven retail analytics, real-time data processing, and collaborative data sharing through their Delta Lake and Lakehouse architecture. Retailers leveraging Databricks gain deeper insights into customer behavior, reduce operational inefficiencies, and respond proactively to shifting market trends.

Business Use Cases and Impact

Demand Forecasting

Retailers utilize Databricks to process real-time data, enabling accurate demand forecasting. This capability leads to improved supply chain agility, reduced costs, and optimized product availability. For instance, a global franchise retailer working with Databricks was able to create trackable and quantifiable value in less than 18 months.

Customer Segmentation and Personalization

By analyzing diverse data sources, retailers can create detailed customer segments, facilitating personalized marketing strategies that enhance customer engagement and drive sales. Insights-driven companies are 23 times more likely to add customers and 19 times more likely to be profitable.

Business Use Cases and Impact

Order Picking Optimization

Databricks’ platform supports the optimization of order-picking processes, increasing efficiency in fulfillment centers and improving delivery times. Retailers have reported up to 85% faster customer response times and 30% cost savings by transforming supply chain analytics with AI and automation.

Real-Time Point-of-Sale Analytics

Retailers gain immediate insights into sales performance, inventory levels, and customer preferences, enabling swift responses to market trends and enhancing operational efficiency. Rapid data ingestion at scale makes advanced insights available across the value chain in real-time, reducing costs and minimizing errors.

Case Study: Prada Group

PRADA

The Prada Group has advanced its analytics and AI capabilities by leveraging the Databricks Data Intelligence Platform. This collaboration has enabled Prada to enhance its data-driven decision-making processes, contributing to improved operational efficiency and elevated customer experiences.

As AI adoption accelerates in retail, Databricks remains a key partner for businesses aiming to scale data intelligence across their organizations, ensuring they stay competitive in an increasingly digital-first landscape.

Retail Market Shifts and Predictions

The Market Shifts and Predictions section at NRF explored the evolving retail dynamics & future strategies. This section showed how retailers can succeed using expert analysis & data forecasts.

Key Market Shifts

Predictive Supply Chains

The adoption of AI and real-time analytics has marked a paradigm shift in supply chain management. Retailers are moving toward predictive models that anticipate demand fluctuations, streamline inventory, and enhance operational efficiency. These technologies help businesses cut costs, enhance customer satisfaction, and adapt to market trends.

Expansion of Retail Media Networks

Retailers are increasingly transforming their platforms into media networks, leveraging first-party data to offer personalized advertising opportunities for brands. This shift has opened new revenue streams, with retail media networks projected to generate $50 billion annually by 2027.Retailers entering 2025 must go beyond merely having an RMN. They will need to innovate by providing exceptional value to consumers, integrating their platforms seamlessly, and leveraging advanced personalization strategies.

Sustainability as a Competitive Edge

Retailers are embedding Environmental, Social, and Governance (ESG) principles into their core strategies. From carbon-neutral operations to circular economy initiatives, sustainability is no longer optional—it’s essential for long-term success. Consumers are rewarding brands that take meaningful action, with 67% of shoppers actively choosing eco-conscious options.

Case Study:

PANTAGONIA

Patagonia exemplifies sustainability in retail through initiatives like its "Worn Wear" program, which promotes a circular economy by encouraging customers to trade or buy used items. The brand uses 100% recycled materials, aims for carbon neutrality by 2025, and donates 1% of sales to environmental causes, earning a loyal, eco-conscious customer base.

Predictions

1.AI Everywhere

By 2028, 80% of retailers will use generative AI for personalized shopping, supply chain optimization, and better decision-making, with those who don't risk falling behind.

Example

Generative AI will play a pivotal role in creating dynamic product recommendations and generating customer-specific marketing content, boosting engagement and conversions.

2. Sustainability Investments Surge

Retailers will allocate 20% of their budgets to ESG initiatives by 2030, focusing on renewable energy, waste reduction, and sustainable packaging. These investments will meet regulatory requirements and address the rising demand for socially responsible brands.

Companies investing in sustainability have reported 20% higher customer loyalty and 15% faster revenue growth compared to peers.

3. AR/VR Shopping Experiences

The virtual shopping market is expected to grow to $120 billion by 2028, driven by advancements in augmented and virtual reality technologies. These tools will merge online and offline shopping experiences.

Example

Retailers like IKEA and Sephora are already leading the way, allowing customers to visualize products in their homes or virtually try on makeup.

Implications for Retailers

What’s Coming Next?

This section provided insights on how retailers can stay ahead and thrive in a competitive market. Indeed NRF 2025  provided a forward-looking perspective on the evolving retail landscape, highlighting emerging consumer expectations, breakthrough technologies, and key opportunities for growth.

5 Critical Pillars of a Generative AI Strategy

Tech on the Horizon

NRF 2026 Enhancements

The NRF team announced several exciting updates for the 2026 event, aiming to make it even more engaging and impactful:

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