Retail Evolution in 2025: Trends, Investments, and Strategies Shaping the Industry

$40B

Amazon is investing heavily to protect its e-commerce advantage in 2025, spending over $40 billion on logistics in 2024 and planning a 25% expansion in its fulfillment network. With $61.4 billion in online store sales and $27.4 billion in cloud revenue in the latest quarter, the company aims to boost Prime memberships by 10% and improve customer experience with AI-driven services and faster delivery, staying ahead of competitors like Walmart and Target.

$241.4 B

US online sales grew 8.7% to $241.4 billion during the 2024 holiday season, with mobile shopping accounting for 54.5% of transactions. AI-driven services and BNPL options boosted sales, while retailers like Walmart and Target increased ad spending and offered early discounts to attract bargain-seeking shoppers. Despite the 9% growth, concerns over profit margins persist. Chatbots drove a 1,300% increase in traffic, and BNPL services saw a 9.6% rise, totaling $18.2 billion in online spend.

2.8%

Retail foot traffic saw a slight 0.4% increase in 2024 despite economic challenges like inflation and rising interest rates. Discount stores led the growth with a 2.8% rise, followed by superstores at 1.7%. Beauty and spa businesses grew by 1.6%, reflecting increased demand for self-care. However, discretionary categories like furniture and home furnishings faced a 5.7% decline before rebounding with a 3.5% increase in the fourth quarter. The overall growth suggests resilient consumer behavior, with expectations for further improvement in 2025 if inflation cools.

2,000

Target is launching over 2,000 wellness products in 2025, with more than 600 items exclusive to Target, and over half priced under $10. The new assortment spans categories like beauty, nutrition, men’s wellness, and functional beverages, including exclusive partnerships with brands like Tom Holland's BERO non-alcoholic beer and The Rock's Papatui men’s care line. The expansion also includes wellness tech, activewear, and nutrition, with the aim of making wellness more accessible and affordable for customers.

9%

eBay shares surged 9% after Meta announced it will allow some eBay listings on Facebook Marketplace in a test across Germany, France, and the U.S. The partnership could help eBay compete with rivals like Amazon and Walmart. Meta’s move is also aimed at addressing European Commission concerns over Marketplace's bundling with Facebook. The collaboration offers eBay greater exposure and may boost its marketplace business, which has struggled amid competition.

$14.3B

Amazon is launching its Retail Ad Service, allowing U.S. retailers to use its ad tools on their own websites. The service will help retailers show targeted ads and leverage Amazon's custom ad design and placement tools. Amazon's ad revenue reached $14.3 billion in the last quarter, ranking third behind Alphabet and Meta in digital advertising.

60

Barnes & Noble is experiencing a resurgence, with plans to open 60 new stores this year, after opening 60 in 2024, bringing its total to 600 locations. CEO James Daunt attributes the success to a shift in strategy, focusing on local community engagement and personalized store layouts. As Amazon's vast selection of "boring books" has helped Barnes & Noble thrive, the chain's stores are embracing a more personalized, neighborhood bookstore approach to attract foot traffic.