The first half of 2025 has revealed a dynamic and multifaceted global retail landscape. Against the backdrop of inflationary pressures, AI adoption, shifting consumer values, and rapid digital transformation, retailers and entrepreneurs alike are being forced to adapt faster than ever. In South Africa, these changes are amplified by economic pressures on the middle class, expanding discount retail footprints, and technological innovation from both startups and legacy players.

Our latest retail trend report synthesises insights from recent industry developments, news coverage, and global research to identify 9 key trends shaping retail in H1 2025. Each trend is explored with actionable insights, strategic implications, and critical questions to help founders, strategists, and investors navigate the evolving landscape.

This article highlights 3 key trends from the full report

Retailers are leaning heavily into AI to personalise shopping experiences, streamline inventory, and automate back-end operations. Companies like Tapestry and H&M are leveraging AI for tasks ranging from coding reduction to in-store associate feedback, while Nigeria's RetailSync merges AI and blockchain to modernise inventory and supply chains. Tools like Amazon's "Buy For Me" and Alpha Modus' CashX kiosks highlight AI's central role in retail infrastructure. However, ethical deployment, data integrity, and balancing human empathy remain critical challenges.

A global wave of agentic AI adoption is reshaping consumer journeys. Retailers are embracing AI shopping assistants that can not only recommend but also transact across platforms. Amazon's shift to external site purchases via AI is a watershed moment, aiming to dominate even when customers buy elsewhere.

Amidst inflation, consumers are prioritising essential goods and turning to discount stores and private labels. South African data shows that 63% of shoppers are switching to store brands, and 76% are driven by promotions. Globally, grocery price inflation has reoriented purchasing decisions toward affordability and value.

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