Retail is rapidly changing due to a mix of global challenges and technological advances. In 2024 and 2025, the industry has been hit by the continuing cost-of-living crisis, rising trade barriers and growing geopolitical tensions. Meanwhile, new technologies are reshaping how people shop – both online and in stores. To stay competitive, retailers are investing more and focusing on personalised customer experiences, new sales channels and better ways to connect with shoppers. They also aim to make operations more efficient by improving supply chains and using automation. Many are moving away from long-term plans and focusing on short-term, flexible strategies to adapt quickly to change, all while ensuring that shopping remains convenient and enjoyable for consumers.
GenAI now central to retail strategy, with rising investment and research
GenAI has become a core part of retailers’ strategies. GenAI is unlocking new levels of personalisation and customer satisfaction, drawing strong interest from retailers. However, after a year of intense hype, many are now taking a more cautious and strategic approach. Businesses are still working to separate truly valuable solutions from those driven by the hype cycle. According to Euromonitor’s Voice of the Industry Survey 2024, GenAI had already impacted retail operations and was only expected to grow in influence. While 65% of industry professionals surveyed planned to invest in GenAI over the next five years, many companies still face knowledge gaps – leading to more careful, research-driven adoption.
International retailers with stronger financial resources and digital capabilities are taking a more proactive approach to exploring and implementing GenAI. These companies are integrating the technology into customer-facing services to boost personalisation and engagement. Common use cases include AI-generated marketing content, predictive analytics, personalised ads and digital shopping assistants – all of which help retailers enhance customer satisfaction, improve efficiency and drive sustainable growth. For example, in April 2025, Walmart launched Trend-to-Product, a GenAI tool that shortens fashion design cycles from six months to six weeks by turning online trends into ready-to-design concepts – boosting speed, creativity and relevance. Additionally, while US-based Walmart rival Target invested in a tool to help staff assist clients, in June 2024 it expanded its GenAI strategy with Store Companion – a chatbot supporting operations across nearly 2,000 stores. Following a successful pilot, Target is also enhancing over 100,000 product pages on its website and introducing conversational search to improve the online shopping experience.
There is no doubt that GenAI will remain a key focus for retailers in the near term, with continued investment and testing of various solutions to enhance customer experience and boost efficiency.
Stores are evolving into experiential, mindful spaces
To make shopping more engaging, retailers are rethinking physical stores as connection points rather than purely transactional spaces. What began as a strategy to enhance in-store experience has evolved, with wellness emerging as a key focus. As health-conscious consumers increasingly seek spaces that support both mental and physical wellbeing, retailers are responding by creating environments that offer relaxation and personal time. According to Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded in January-February 2024, 51% of global consumers prioritised “time for themselves” as essential to happiness. In response, retailers are investing in experiential, wellness-driven spaces – introducing features like meditation areas, sustainable design, spa services and self-care workshops to align with evolving values and drive lasting engagement. According to Euromonitor’s Voice of the Industry Survey 2024, 38% of professionals cited aligning with consumer values as a top innovation priority over the next two years, while one in three planned to enhance the experiential aspect of their offering.
While beauty retailers have been pioneers in integrating wellness, they are not alone. Grocery chains like Lidl and Asda now offer “quiet hours” to create a more comfortable shopping environment for neurodivergent customers. US-based athleisure retailer Lululemon hosts in-store yoga and meditation sessions. In March 2025, UK-based health food retailer Holland & Barrett opened its Cardiff Experience Store, combining health checks, personalised wellness services and calming, story-driven design, signalling a bold step towards experiential health retail. In April 2025, Dutch beauty specialist Rituals launched Mind Oasis at Schiphol Airport, a wellness space offering services like Hydro Massages to help travellers relax, reinforcing the brand’s focus on immersive, wellbeing-driven retail. Across sectors, retailers are increasingly incorporating wellness elements to align their consumer-facing operations with broader wellbeing values.
Discover more in our report, Competitor Strategies in Retail, where we explore additional focus areas for retailers, including value propositions, social media approaches and strategies for navigating tariffs.