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3 key takeaways from NRF 2025

Capgemini
Jan 16, 2025

A quick visit to NRF’s most recent Big Show made one thing clear: 2025 will be the year where science fiction becomes a shopping reality.

From AI-enabled hyper-personalized experiences to the rise of responsive ads via retail media networks to next-gen supply chain automation, the retail industry is transforming on all fronts.

But while retailers face unprecedented disruption across markets, digital enablers and consumers, it is important to remember that this onslaught of change also offers an unparalleled opportunity. Here we offer our take on three ways the retail landscape is changing, the retailers that are at the forefront of these trends, and the steps companies can take to turn fantasy into future success.

A glimpse from NRF 2025

Blended retail: Every space has commercial potential

Long gone are the days of clear delineation between physical and digital channels. Now, retailers are operating in a blended reality, where every space, interaction, and data point has commercial potential.

Take Gap, for example. In a session led by Bill Forbes, Sr. Director of Mobile Software Engineering, we learned that the retailer has more than 1.6 billion visits to its Gap app. Part of Forbes’s job is figuring out how to leverage AI to draw the insights out of those visits and determine the best touchpoints—digital, physical, or somewhere in between—for shoppers. The retailer is now experimenting with a fashion AI system designed to guide shoppers through tasks such as gifting, event styling, and brand discovery while addressing core challenges like accurate sizing, outfit recommendations, and relevant reviews.

The takeaway for retailers is that in this current landscape, the product has become the consumer. Retailers are not selling physical goods so much as meeting consumer needs. With an incredible amount of data at their disposal, the business shouldn’t be around static products, but dynamic, personalized experiences that transcend channels and unite touchpoints.

The new era of connected consumption and contribution

The customer journey is no longer linear. Nor is it rooted in the idea of passive consumption. Instead, retailers are now operating in a dynamic and connected environment—one where the journey is determined by the customer’s needs, not the retailer’s capabilities.   

As a result, companies will need to dramatically transform their systems and processes to enable this new paradigm. What used to be back-office functions must expand to include customer-facing applications.

In a keynote session featuring Burberry CEO Josh Schulman, the retail exec outlined a new framework that the company designed to unite merchants, product development teams, and business leaders to help enhance customer engagement. This initiative focuses on reviewing product archetypes, identifying areas for improvement, and aligning investment, merchandizing and distribution strategies to drive growth.

The key for retailers is to connect the business with their consumers as closely as they can. The mandate isn’t just about selling products—it’s about being an authentic part of consumers’ lives.

Know what consumers want

Every retail success story highlighted at NRF had one thing in common: A deep understanding and focus on the consumer. It’s what’s behind Bath & Body Works’ high NPS scores, Foot Locker’s high-impact loyalty program, and Tommy Hilfiger’s 40-year history as one of the world’s most celebrated brands.

On one hand, brands and retailers have an incredible amount of data at their disposal to help them make better decisions. But what may be missing is a broader understanding of how consumer behaviors and preferences are changing.

Filling this gap is the reason for our annual research study by the Capgemini Research Institute, What matters to today’s consumer. Unveiled at NRF 2025, this report highlighted some important findings that retailers can use as a lens when looking at their data.

For example:

  • Over half (58%) of consumers have replaced traditional search engines with gen AI tools for product/service recommendations, an 86% increase from 2023
  • Two-thirds of shoppers say they would switch retailers due to a lack of sustainability
  • Over the past 12 months, online adverts influenced nearly one-third of online purchases

Do any of those data points spark new ideas about what to look for in your own data? Do they serve as a starting point when considering investments in new technologies or capabilities, like AI or retail media networks? Do they give you pause about how to adapt or refine your goals, priorities and approach for 2025 to be more customer-focused?

We believe our report to be a useful tool for retailers to better understand consumer sentiment and behavior. To download a copy, please visit our research page, What matters to today’s consumer: 2025.

What’s next for retailers: 3 steps to guide 2025 and beyond

While every retailer’s journey to the future will be different, we’ve identified three core principles to serve as the foundation of success, guiding businesses as they unlock growth, adapt operations and embrace purpose.

Growth starts at the channel level. As companies consider their future strategies, they must identify where they can drive the greatest influence and impact. One promising opportunity highlighted by our research is the rise of retail media networks—leveraging existing digital and physical infrastructure elements to deliver personalized digital experiences to high-intent customers and forge new connections with brand partners. The value of retail media networks is significant: According to our analysis, Kroger delivered $1.3 billion in operating profit in 2023 from its alternative profit businesses, including Kroger Precision Marketing.

Consumers are now willing to pay 9% of the order value for 2-hour and 10-minute delivery. 65% of consumers consider a 2-hour delivery format a key attribute when they shop, indicating that retailers should consider integrating this into their business models. Is your supply chain up to the challenge? For grocery and mass merch segments, where quick delivery and product availability are paramount, adapting operations to include localized inventory systems will be critical. These enhancements can drive efficiency and ensure customer satisfaction in a highly competitive landscape. The non-linear, dynamic, and multi-directional nature of today’s retail landscape requires a next-gen supply chain. Retailers need to create a holistic strategy that simultaneously takes cost out while also meeting the needs of the customer. 

Sustainability and purpose-driven products may be last on our list, but it is certainly not an afterthought for modern shoppers. In fact, our research revealed that consumers want retailers to do more in this area, such as offering clear and compelling information about sustainable choices, providing easy-to-understand information about product sourcing, traceability and nutrition, and creating programs that tackle everyday issues like food waste. As retailers plan for the coming year, they can’t ignore the call to lead with purpose on issues that matter.

Turning science fiction into shopping reality with Capgemini in 2025

As retailers face waves of disruption on all fronts, leaders have a fundamental choice: stay the course or embrace the opportunity for change. In today’s dynamic landscape, those who seize the possibilities of transformation will not only navigate the challenges ahead but also redefine the future of the industry, driving innovation, resilience, and long-term success.

Need help turning your NRF inspiration into action? Our team can help. Set up a consultation with our experts to learn more about how Capgemini can help your organization get the future you want. 

Meet our experts

Tim Bridges

Global Head of Consumer Products & Retail
Tim Bridges leads Capgemini’s Global Sectors and the Consumer Products, Retail, Distribution (CPRD) global sector practice, a portfolio that includes major global retail, fashion, restaurant, consumer products, transportation, and distribution brands such as McDonald’s, Coca-Cola, Meijer, Office Depot, Domino’s, and Unilever.

Lindsey Mazza

Global Retail Lead, Capgemini
Lindsey is Capgemini’s Global Retail Lead. She is a retail thought leader and subject matter expert who specializes in shopper-centric, unified-channel commerce and innovation. With nearly 20 years’ experience in retail transformation, Lindsey has served some of the world’s largest retailers in analytics-enabled integrated planning and execution, from consumer demand to receipt.

Owen McCabe

Vice President, Digital Commerce – Global Consumer Goods & Retail, Capgemini
Owen is Capgemini’s Global VP for eCommerce. He previously led the Digital Commerce Practice at Kantar and held senior marketing and sales roles at both Procter & Gamble and Nestle. He has domain expertise in eCommerce, digital marketing, brand marketing, route-to-market strategy, and category management. Owen’s passion for digital commerce came about after a private equity assignment in an online travel business.

Mayank Sharma

Vice President
Mayank is a Supply Chain Leader with expertise in driving supply chain transformations through use of digital solutions across planning, procurement, logistics, fulfilment, and sustainability. He has worked across Consulting, Operations and Technology giving him a well-rounded approach to identifying business transformation requirements and re-inventing supply chain operating models through performance-led technology transformations. At Capgemini, he is responsible for leading & growing Capgemini’s Supply Chain Practice for Consumer Goods, Retail and Distribution. Mayank brings unique experience of leading transformations as a consultant at Big 4 and at Amazon.com of leveraging digital solutions within e-commerce supply chain to drive end-to-end supply chain improvement.

Kees Jacobs

Consumer Products & Retail Global Insights & Data Lead, Capgemini
Kees is Capgemini’s overall Global Consumer Products and Retail sector thought leader. He has more than 25 years’ experience in this industry, with a track record in a range of strategic digital and data-related B2C and B2B initiatives at leading retailers and manufacturers. Kees is also responsible for Capgemini’s strategic relationship with The Consumer Goods Forum and a co-author of many thought leadership reports, including Reducing Consumer Food Waste in the Digital Era.

Vince Crimaldi

Vice President
Vince Crimaldi is a leader in Capgemini’s Consumer Products, Retail, and Services (CPR&S) market unit leadership team, responsible for strategy development and industry-specific solutions for many of Capgemini’s largest Consumer Products, Retail, Distribution, Restaurant, Grocery, and Pharmacy clients. With more than 25 years of experience in designing and delivering transformational technology-based solutions, Vince has accomplished this in a global context, forming teams spanning the U.S, Europe, Asia, Australia, LATAM, and the Middle East, while working in various global markets within Europe and Asia.

Jennifer Conklin

Vice President, Capgemini
Jennifer has 20 years of experience in retail, helping direct-to-consumer brands and retailers use technology to deliver better experiences and outcomes for their customers. She returned to Capgemini in October 2022 after a brief stint as the Chief Customer Officer at a Chicago-based technology start-up, UPshow.

Sharmila Senthilraja

Industry Platform Leader for Consumer Products and Retail, Capgemini India
Sharmila Senthilraja spearheads innovation, global strategies, and market growth at Capgemini, leveraging 25+ years of experience across business and technology. She has held leadership roles at SAP, IBM, and Future Group, excelling in P&L management, digital practices, and analytics. With a rich background in grocery retail operations, Sharmila holds an MBA and an Executive Certification in Business Analytics from IIM Bangalore.

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