2025 Outlook: Emerging Retail Formats & Shopper Trends
An Aug. 6 webinar, “2025 Retail Trends: Implications for the Second Half and Beyond,” offered a timely look at the forces reshaping consumer behavior and retail strategy in the back half of the year.
Led by Ethan Chernofsky, chief marketing officer at Placer.ai, the session broke down lasting behavioral shifts, "forks in the road" to watch and signals of what's ahead based on location data and real-world visitation patterns.
Here are some key takeaways:
1. Consumers Are Visiting More Stores, But Spending Less Time Per Trip
While physical retail visits remain strong, the nature of those visits is changing. Shoppers are making more frequent trips, but each one is shorter and often lower in spend. This trend has big implications for how retailers drive conversion.
- Mission-driven shopping is fading in favor of more fragmented trip patterns.
- Retailers must now fight for basket size, not just foot traffic.
- Out-of-stocks or weak service can now mean losing a sale entirely, as consumers are more likely to shop around.
2. Wellness, Grocery and Value Retail Are Standouts
Fitness and wellness retailers continue to benefit from post-pandemic habits. Grocery chains have retained more share than expected by adapting to increased at-home cooking trends. And value-based channels like wholesale clubs and off-price retailers are thriving — not just from economic tailwinds, but because they've successfully converted shoppers into loyal, repeat customers.
3. Retailers With a Clear Identity Are Winning
“Convenience is overrated — not unimportant, but overrated,” Chernofsky said.
Brands and banners with a strong “reason for being” — such as Trader Joe’s or Sprouts — are outperforming larger chains because shoppers are willing to travel farther and be less price- or convenience-driven if the product or experience aligns with their preferences.
This identity clarity makes it easier for retailers to:
- Design smaller or more flexible formats.
- Expand into new markets confidently.
- Deliver consistent in-store experiences.
4. The Mall Isn’t Dying — It’s Evolving
Contrary to lingering “retail apocalypse” narratives, top-tier malls are doing well — and their success is creating a "mall waterfall" effect. As premier spaces diversify their tenant mix and attract traffic, B-tier malls are seeing a lift too, with leasing rates approaching 90%.
The trend reflects how physical retail remains central — not just for sales, but also for community, experiences and brand discovery.
5. Limited-Time Offers and Pop-Ups Are Driving Traffic Surges
From Hello Kitty mobile stores to a Bath & Body Works x Disney collab, pop-ups and limited-time offers are gaining traction as high-impact brand activations. They:
- Increase foot traffic and cross-sell opportunities.
- Provide test environments for DTC brands trying physical retail.
- Deliver value across the ecosystem.
6. Walmart’s Store-as-a-Platform Strategy Signals What’s Next
Walmart is a bellwether in the evolving store format conversation. Its growth in store-fulfilled e-commerce (e.g., pickup, local delivery) is powering its digital momentum. However, it’s also testing dark stores, sparking questions about how much floor space is best used for fulfillment versus shopping.
Retailers may soon have to balance operational efficiency with experience-driven formats — and decisions made in the next 6-12 months could set long-term precedents.
7. Retail’s Middle Ground Is Shrinking — or Just Harder to Serve
The bifurcation of retail — value vs. luxury — is real, but not absolute. Chernofsky emphasized that “middle-ground” retailers such as Target and Kohl’s are effective, but face steeper challenges, especially when labor, service and stock levels are inconsistent.
8. In-Store Retail Media Has Huge Untapped Potential
Though in-store still accounts for the majority of retail influence, Chernofsky noted that a small portion of retail media dollars currently go toward in-store placements. The barriers? Accessibility, scalability and inconsistent measurement.
Yet the opportunity is massive — especially given the discovery mindset of in-store shoppers.
“The battle for retailers is for the basket now,” Chernofsky said. “The ability to influence the shop while you're in the middle of the shop is even more important than it was before.”
9. Harmonized Retail Is the Future — Not Just Omnichannel
The webinar closed on the idea of “harmonized retail,” where online and offline touchpoints complement rather than compete. Whether it’s a physical store driving digital sales or vice versa, retailers must take a more holistic view of ROI.
Some DTC brands are now measuring e-commerce lift based on foot traffic patterns in local stores — a sign that metrics and strategies are catching up to modern shopping behavior.
