2025 Trends and predictions for Retail

Our technical directors share their predictions and highlight the key challenges and opportunities facing industries in the next 12 months and beyond. Sumit Sharma will tell you all about his expectations for the Retail sector in 2025.

1. In 2025, a major retailer will be ‘outed’ for misusing data, creating a watershed moment for consumer action.

In recent years, there have been several data selling scandals that have piqued the public consciousness - just think of Cambridge Analytica. This year, we will see a major brand being exposed for bad practice, which will act as a watershed moment that will see data ethics becoming a major rally call for consumers.

This will shift the conversation around data ethics. Much like we have seen with sustainability and other social causes, data ethics and data transparency will bubble up into the public consciousness – with consumers demanding that businesses can prove they aren't misusing or selling data for questionable purposes. Data ethics will become a deciding factor in where consumers choose to shop.

 Consumers are increasingly aware that data is power – and that if they are going to give it up, they want something in return and to know that it will be treated ethically. This shift is especially relevant with the rapid growth of AI, which can not only analyse but generate new insights from customer data.

A master at transforming old data into new, AI will raise critical questions about data ownership and, ultimately, accountability when data is misused. Companies will need to establish clear, enforceable data policies to build trust, ensure compliance, and safeguard against potential misuse.

2. AI will help retailers unlock the power of their data brains in 2025.

Retailers are drowning in data sources. 75% of retail organisations report obstacles to becoming truly data-driven, with the top ranking issues being data complexity, legacy systems, and a lack of skills and resources. Essential information is scattered across individual accounts, spreadsheets, and emails, hindering seamless coordination. While gaps in datasets, out of date information and lack of uniformity in how data is collected means many retailers struggle to activate the data they have.

Retailers will need to accept that complexity is here to stay, but those who take a structured approach—consulting experts and implementing the right tools—will finally unlock the potential of their "data brain.” This "data brain" represents the insights an organisation captures and analyses to drive business value.

With AI now transforming backend operations, data collection is at an all-time high as retailers work to optimise inventory and even predict supply delays based on weather patterns. By effectively harnessing this data, retailers can elevate customer experience and secure a lasting competitive edge.

3. 2025 is the year retailers step up their defence for supply chain security.

Retail supply chains have become a lucrative attack target for cybercriminals. This is hardly surprising – a single breach of a retail supplier can lead to multiple opportunities to exploit downstream customers – yielding a massive profit. As supply chains grow more interconnected and complex, the risks multiply. Gartner estimates that by 2025, 45% of organisations worldwide will have experienced attacks on their software supply chain, a three-fold increase from 2021.

 The stakes for retailers are high. In addition to the immediate financial losses resulting from a cyber-attack, these incidents can cause long-term reputational damage, leaving customers questioning the security of their data. The sector already faces cybersecurity challenges, as 65% of retailers say that security risks keep them awake at night. Limited visibility into suppliers and partners compounds the challenge, making it difficult to identify vulnerabilities across the chain. Meanwhile, regulations like NIS2 are raising the bar, requiring businesses to strengthen resilience and demonstrate accountability.

The overall integrity of a retailer’s supply chain is only as strong as its weakest link. To mitigate risks, retailers must assess their ability to detect, respond to, and remediate threats while adopting best practices to secure their software supply chain. Change doesn’t require an overhaul—retailers can apply the "Swiss cheese model," incrementally implementing layered security measures to address vulnerabilities over time. 2025 is the year for retailers to prioritise robust supply chain defences, ensuring long-term security and resilience.