The annual National Retail Federation (NRF) expo in New York brought together retail and tech leaders from around the nation to showcase emerging opportunities and challenges shaping the industry. As always, the expo offered numerous live sessions showcasing innovative technologies, success stories, and actionable insights for the rest of the industry. From the rapid evolution of AI to the enduring focus on seamless in-store and digital experiences, NRF 2025 was a hub of inspiration and forward-thinking ideas.
Here are the key takeaways from this year’s event:
1. AI is an enabler, not a goal
As in previous years, AI was inescapably discussed at NRF 2025. This year, however, the conversation has matured beyond the excitement of its futuristic potential and focused on real-world experimentation, implementation, and iteration.
Throughout the show, numerous speakers reiterated that the term “AI” is a not-particularly-useful umbrella term encompassing numerous unconnected technologies (e.g., machine vision, conversational interfaces, and machine learning). Still, most major brands spoke about their experiences in the past year applying some form of AI for specific use cases, though many are still navigating how to achieve measurable ROI. As a Vitamin Shoppe executive remarked, “We don’t have an AI strategy; we have a strategy to create better experiences for our customers and make our store folks’ jobs easier. If AI can help with that, then awesome.”
“We don’t have an AI strategy; we have a strategy to create better experiences for our customers and make our store folks’ jobs easier. If AI can help with that, then awesome.”
This sentiment was echoed by Vicki Cantrell, CEO of Vendors in Partnership, who noted, “There is no AI strategy—it’s about business challenges and opportunities that can be solved and enhanced by technology.” The consensus at the expo was clear: AI is not an end goal but a tool to deliver practical, customer-focused results.
While adoption remains in its early stages for many retailers, the potential for transformative impact is undeniable. As one executive pointed out, “AI will start slow but snowball to create a big impact. Retailers relying on a fast-follower strategy risk falling behind.”
2. Grocery innovation is being driven by convenience and digital engagement
The grocery retail sector is being reshaped by the demand for convenience and digital engagement. During the “North American Grocery Retail Trends for 2025” session, Michelle Evans, Global Lead of Retail and Digital Consumer Insights at Euromonitor International, shared that 58% of global consumers now browse for food online. Click-and-collect services, livestream shopping, and other digital tools are becoming essential for meeting evolving customer expectations.
Physical stores are adapting by functioning as both discovery hubs and localized distribution centers. The rising popularity of discounters (2% growth versus 1% overall retail growth) and warehouse clubs reflects consumers’ desire for cost-efficient, streamlined shopping experiences. Urban Millennials, in particular, are embracing in-store innovations like smart carts to enhance convenience.
To stay competitive, retailers must maintain a presence across digital and physical channels, ensuring accessibility and immediacy while capitalizing on scale advantages.
3. In-store experiences are digital experiences
Technology is bridging the gap between physical and digital retail, with many exhibitors at NRF demonstrating how in-store tools can enhance customer interactions. Tools like purchase history access, personalized recommendations, and smart carts empower associates to provide better service. During the session titled “Unlocking Game-Changing Digital Experiences,” a national chain executive how they are “leveraging technology to make the shopping experience better and to scale what our employees can do.”
Dynamic innovations like AI-powered assistants are also gaining traction. Shirley Gao, CDIO with PacSun described how they are using a conversational AI to support employees by addressing everything from HR issues (“my manager yelled at me”) to technical challenges (“the cash register is operating slow”) to operational questions (“I think a customer may be stealing”). Unlike traditional guidelines stored in a binder, guidelines within the AI can be appended and disseminated instantly at scale. Gao went on to explain the technology was being embraced by the overwhelmingly gen-Z staff who have grown up with these types of technologies and, even better, has provided management with data points that could be used to improve training.
Similarly, an executive from H&M showcased how they were placing “low-cost sensors” in stores to generate heatmaps of activity to design the experiences more efficiently and can also help associates make recommendations and show customers precisely where to go.
These advancements underscore how digital tools can reduce friction, improve service, and make in-store shopping more intuitive and enjoyable.
4. Loyalty is the new cookie
With third-party cookies fading, loyalty programs are becoming the cornerstone of customer engagement and data collection. Programs like Vitamin Shoppe’s—where 85% of sales are tied to loyalty members—offer value in exchange for data, enabling personalized recommendations and promotions.
Modern loyalty programs now integrate non-purchase activities like surveys, social media engagement, and educational content, fostering deeper customer connections. Many retailers reported emphasizing zero-party data through these loyalty programs—as an executive from Ulta Beauty put it: “We learn as much about the customer as possible—with their permission.” Such strategies maintain relevance while respecting customer privacy and strengthening trust in the brand.
Loyalty programs are essential for building trust, maintaining personalization, and thriving in a privacy-conscious era by focusing on lifetime customer value rather than one-time transactions.
Loyalty programs are essential for building trust, maintaining personalization, and thriving in a privacy-conscious era by focusing on lifetime customer value rather than one-time transactions.
5. Unified commerce is key to agility
Unified commerce emerged as a powerful strategy for delivering seamless customer experiences. Unlike traditional omnichannel approaches, unified commerce integrates backend systems to create a consistent, cohesive ecosystem across online, in-store, and mobile channels.
“Unified commerce means you’re providing a seamless experience to the customer… their shopping experience across channels is truly seamless,” shared a retail executive during the expo. This approach leverages composable architecture and APIs, allowing retailers to adapt quickly to changing demands.
“It’s important to have a single journey for the consumer,” explained Gokul Nair (CIO, KitchenAid) at an off-site event sponsored by VTEX when asked why the company invested in a single unified platform for its global operation. “It can only be brought about by having one global platform all along the consumer journey.”
Unified commerce enhances the customer experience and empowers retailers to adapt quickly. A composable commerce approach, for example, allows companies like Vitamin Shoppe to “pick-and-choose the LEGO pieces” needed to swiftly bring new functionality or products to market.
6. Garbage (data) in, garbage (data) out
This isn’t a particularly new or novel idea, but one sentiment came up repeatedly at numerous sessions during NRF 2025 and is probably worth underlining—particularly for retailers at the beginning of their analytics and AI journey: the critical importance of data quality (though some used more colorful language).
Many leaders emphasized that poor data inputs will inevitably lead to subpar outputs, regardless of the sophistication of the AI tools used. Before embarking on AI projects, retailers must ensure their data is clean, organized, and actionable.
NRF 2025 offered a glimpse into the future of retail, with a strong focus on innovation, customer-centric strategies, and the importance of agility. The industry is clearly moving toward a more connected, efficient, and personalized shopping experience, paving the way for a transformative year ahead.