Retail companies are constantly evolving their store footprints to respond to the ever-changing shopping behaviors of consumers in 2025. Tech savvy customers, data driven shopping powered by artificial intelligence, the continued desire for e-commerce and the incorporation of sustainable practices are some of the top items impacting retailers today.
E-commerce Integration with Physical Stores
While the convenience of online shopping is gaining popularity, e-commerce only accounted for 16.2 percent of total US retail sales in 2024 according to the US Census Bureau.
In many cases, online activity is paired with in-person shopping experiences. Consumers can take advantage of researching products, finding availability and locating stores online. According to Google, 74 percent of shoppers search for something in-store-related before going to a physical store location.
BOPIS (buy online, pick up in-store) offers customers 24/7 access balanced with the instant gratification of having the product in-hand with zero shipping costs. A separate online order pickup counter can reduce in-store foot traffic and give online shoppers a more tailored in-person experience that prioritizes their pre-orders and in-store returns of online purchases.
Personalized and Data-Driven Shopping
With the rise of artificial intelligence (AI) and tailored algorithms, retailers can personalize online advertising and tailor which products could entice a click to their website or a visit to one of their stores. Compared to peer brands with low personalization maturity, brands that excel at personalization were 71 percent more likely to report improved customer loyalty, according to a Deloitte Digital survey.
AI analyzes customer preferences and predicts in real time what shoppers may want to buy through machine learning. These predictive customer insights from demographics and shopping activities could empower businesses to more accurately personalize retail experiences and increase customer engagement.
This customer behavior data can also influence store layouts. AI can learn how customers navigate through a store through traffic flow and product popularity. This useful tool can provide retailers with recommendations on product placement, aisle arrangement and store design. Strategically placing AI powered screen displays and product advertising throughout stores can also blend a customer’s online and in-person shopping experience.
Sustainability
Sustainable practices have become less of a recommendation and more of a demand as corporations navigate the short and long-term impacts of climate change. The retail sector is in a unique position of contributing to and being affected by a warming planet as one of the top 10 most carbon-intensive industries, responsible for about 25% of global greenhouse gas emissions.
Stores must provide eco-friendly products and principles to attract eco-minded customers. Dynamic content on LED display screens can greatly reduce waste from temporary and disposable paper signage. Power-saving energy features such as a smart thermostat, automated lighting, solar panels and rainwater harvesting helps reduce carbon footprints and results in significant operational cost savings.
Aside from focusing on the impact of the end product, companies must look inward at their supply chain management which can be one of the largest contributors to their emissions. Circular economy practices—extracting maximum use of resources and generating minimum waste for disposal—could greatly reduce these negative effects. Deriving clothing and packaging materials from recycled waste, buying and selling secondhand or refurbished goods, repairing broken items and avoiding single-use plastics are a few ways corporations can avoid the unflattering “take-make-waste” model.
Rise of Smaller, Community-Centric Retail Spaces
While traditional shopping malls adapt to the changes in shopping behaviors and shifting demographics, smaller footprint retailers and “buy local” small shops are increasingly gaining in popularity. Mixed-use developments and town centers continue grow in suburban markets for their community centric experiences, small shops, events and dining experiences.
Communities want to see their neighbors thriving, and that means more foot traffic on main streets and in small businesses. Independent retailers can offer new and creative storefronts, products and activities. These compact spaces allow for a targeted approach and support local economies, aligning with a growing demand for personalized and people-focused shopping experiences.
About Ci
From revitalized mixed-use districts to lifestyle shopping centers, storefronts and tenant fit-outs, Ci creates vibrant retail destinations that reflect each client’s vision while adapting to evolving consumer trends. Ci was ranked #75 in Building Design + Construction's Top 140 Retail Architecture Firms.