The 7 Trends to Watch in 2025 & How They Will Shape Customers

As 2025 begins, the retail industry continues to transform at an unprecedented pace, propelled by advancements in technology, shifts in policies, and cultural evolution. At the heart of these changes lies the customer—their aspirations, behaviours, and psychology. Below are the seven pivotal trends to monitor this year, along with their profound effects on the people they serve.

1. The Climate Revolution: Shaping Green Mindsets

Climate action has evolved from being a trendy phrase with many brands telling us what they do to an essential expectation. Today’s customers demand greater accountability from brands, scrutinising their sustainability efforts, actions and environmental impact. This movement reflects a deeper psychological need—aligning personal values with purchasing decisions.

For those customers choosing eco-friendly products transcends environmental concerns; it represents a large part of their identity. They view themselves as catalysts for change and part of a collective mission to transform consumption. Brands that champion transparency, provide authentic green solutions, and actively involve customers in positive climate actions will earn enduring loyalty.

2. AI Everywhere: Personalisation Meets Empowerment

Artificial intelligence is revolutionising customer interactions, enabling retailers to predict preferences, anticipate demands, and better deliver highly personalised experiences. For customers, this fosters a sense of being understood, satisfied and most importantly valued—all powerful motivators in the retail journey.

However, awareness of data privacy and ethical concerns around AI also continues to grow. In order for brands and retailers to succeed, they must balance personalisation whilst respecting boundaries, using AI as a tool to build trust rather than erode it. Not easy to do when most will be starting with preconceived thoughts of doubt and heightened wariness. When executed or implemented thoughtfully, AI can shift from merely driving sales to actually deepening relationships. The very opposite can happen also so caution is advised.

3. The New Social Media Reality: Trust and Community

Social media presents a paradox for so many modern customers 2025. While it offers abundant content, helps us keep connected with loved ones and the world around us, more or most of it is superficial or misleading, leading to an ever increasing fatigue and scepticism. The rise of AI-generated misinformation and over-curated influencer narratives has only heightened the demand and need for authenticity.

What customers now seek and crave is genuine connection. They are drawn to brands fostering real communities and prioritising honest storytelling over polished perfection. Retailers and brands that engage in meaningful conversations and create safe spaces for conversation are going to resonate and connect with this growing cohort of trust-seeking consumers.

4. Immigration and the Workforce: Evolving Cultural Narratives

Immigration policies not only influence labour markets but also shape our societal narratives about identity and belonging. In 2025, our customers are increasingly mindful of the human stories behind their purchases and question the origins and ethics of production so much more than ever before.

This heightened awareness is promoting a greater need for inclusivity and fairness. Retailers can respond by simply showcasing diverse perspectives, maintaining strong ethical supply chains, and highlighting the contributions of immigrant labour. When customers see the people and stories behind the products, there's no doubt this connects on a more personal level and drives loyalty and allegiance for any business.

5. Skills-Based Hiring: Redefining Opportunity

The shift towards skills-based hiring is reshaping notions of merit and opportunity. For customers, it reflects broader societal progress towards equity and inclusion. They are increasingly attuned to how businesses treat their employees, perceiving it as a benchmark of integrity.

By now valuing skills over traditional credentials like degrees and certificates, brands demonstrate a commitment to levelling the playing field. Customers view this ethos as an extension of their own values around fairness and opportunity. In my opinion retailers should amplify such efforts, sharing stories of employees who have thrived through non-traditional pathways is going to inspire many.

6. Trade Volatility: Customers on Edge

I'm sure we have all been made aware of the Global trade uncertainties, from tariffs to supply chain disruptions which directly affect customers through delays, price increases, and product shortages. While these challenges are going to create a lot of frustration, they also encourage ongoing resilience.

Customers are becoming much more discerning, gravitating towards brands that communicate transparently during disruptions. Clear updates, realistic timelines, and proactive solutions foster trust and loyalty, even amidst all this uncertainty. If you embrace honesty and creative problem-solving any retailer can turn these challenges into advantages.

7. AI in Innovation: Empowering Creativity

Artificial intelligence is somewhat democratising creativity, breaking down barriers to innovation. Customers increasingly expect brands to deliver fresh, exciting products and experiences tailored to their evolving preferences.

This shift may empower customers, making them feel more like collaborators in the creative process. Brands that leverage AI to address real-world issues, invite customer input, and celebrate their contributions should see stronger and deeper connections and loyalty.

Putting Customers First in 2025

So if we wrap these all up, it's those retailers who will thrive in 2025 will be those that place the customer at the centre of every decision. They will need to truly understand their business on an emotional level to connect to the psychometrics and desired feelings of their target audience. By recognising the evolving mindsets and motivations of their audiences, brands will be able to craft experiences that are going to resonate on a deeper level. This year is about more than keeping pace with trends all the productivity and efficiency tech can bring; it is about forging meaningful connections and growing alongside the customers who matter most.

Nick Gray