Survey notes top retail industry challenges in 2025
by February 3, 2025 11:14 am 328 views
A retail executive survey by Deloitte found a majority of respondents expect climate change, increasing price wars and retail theft among the biggest concerns in 2025. Other challenges included changing consumer spending habits that complicate demand forecasting.
The survey was conducted before President Donald Trump announced broad tariffs against China, Canada and Mexico.
In a separate survey of consumers, Deloitte found 80% of respondents prefer spending on experiences over goods in 2025, while 71% said they plan to increase the use of generative AI when shopping. Social media is also a growing platform for consumer purchases as 68% said they plan to increase social commerce purchases. Other sticky behaviors are also hanging over from 2024, with 67% saying they will shop more frequently with smaller basket sizes and 56% will continue to value lower prices over brand loyalty.
Retailers have said they are aware of the shopping behaviors and will focus on offering value and convenience while working with suppliers to keep prices down.
Top retail investments planned include using AI in demand forecasting, inventory management, and delivery and mapping supply routes. Deloitte found that 75% of retailer respondents expect AI to assist with dynamic pricing based on demand, competition and other factors.
Around 30% of retailers said they plan to make significant technology investments to modernize supply chains, and around 75% of retailers plan to invest in theft prevention strategies. The survey found 70% of surveyed retailers will expand in-house delivery capabilities. In addition, 64% believe the number of automated micro-fulfillment centers will grow in the next five years to support the expansion of delivery services.
Nearly half of retailer respondents said convenience is key to enticing consumers, especially around last-mile delivery options and inventory visibility. Nearly half plan to make moderate-to-significant investments in physical store remodels or new locations in 2025. About 40% plan to engage customers through improved shopping experiences.
Retailers also plan to invest in workforce hiring and retention strategies in 2025. Walmart recently announced additional pay for its market managers who oversee about a dozen Walmart stores. The retail giant said it raised the minimum salary for market managers to $160,000, up from $130,000. Additionally, market managers can earn an annual bonus of up to 100% of their salary, up from 90% previously. Lastly, the retailer added $25,000 in annual stock grants to the compensation package making the managers eligible for up to $100,000 in stock grants annually. Walmart said a market manager’s total earnings now can reach $620,000 annually.
Walmart said market managers “oversee multiple stores, which is key for our business and for serving our customers however they shop. The pay change reflects the importance the role plays in supporting our growth.”