In retail, the new year doesn’t start until the National Retail Federation’s (NRF) Big Show. The event brings together retail’s best, brightest and most innovative to collaborate, celebrate wins and share their visions for what’s to come. The topics that dominate conversations at NRF tend to define the year ahead, providing valuable insight into how retailers think about the industry.

We rounded up some of the top topics at this year’s NRF, as well as our own insights into trends to watch in the coming year.

AI's shift from hype to practical solutions.

Last year, AI was all the rage at NRF (and every other industry event you can imagine), with companies musing about the multifaceted and game-changing capabilities it might yield. AI was still a hot topic at this year’s Big Show, but the tenor of conversations has shifted away from flashy apps and experiences toward pragmatic, backend implementations.

Retail technology specialists focused on targeted, data-driven AI tools that help retailers make sense of their operations to better plan future AI-supported improvements. In eCommerce, AI is transforming personalized shopping experiences by leveraging advanced recommendation engines and dynamic pricing strategies that adapt to consumer behavior. Meanwhile, in physical stores, AI enhances operations through predictive analytics for inventory management and optimizes supply chains. Additionally, visual recognition technology is gaining traction, enabling customers to find products through image uploads. Retailers are also harnessing AI for in-store analytics, utilizing heat mapping and foot traffic analysis to refine store layouts and enhance the overall shopping experience.

The event’s Food Innovation Zone showcased practical AI applications, including people counting and analytics tools from Sensormatic Solutions, as well as AI solutions designed to translate menus, power smarter self-serve kiosks, and personalize ordering experiences.

Gen Z and Alpha redefining retail.

The NRF Big Show highlighted the rapidly evolving landscape of customer expectations, particularly among younger generations. Gen Z, with their increasing spending power, appears to be leading this retail revolution, compelling brands to redefine the shopping experience to align with their values and preferences. This cohort prioritizes authenticity, social responsibility, and seamless technology integration in their shopping journeys. They seek immersive experiences that transcend traditional retail, driving brands to innovate and create environments that resonate with their lifestyle and ideals.

In tandem, the rise of Gen Alpha—the generation born from the early 2010s onward—introduces new dynamics to the retail industry. As the first generation raised entirely in a digital world, Gen Alpha possesses distinct expectations for interactivity and personalization. Retailers must not only capture the attention of Gen Z but also anticipate the needs of this younger demographic, who will soon wield significant influence over market trends.

Merging digital and physical experiences.

With the preferences of younger consumers driving a shift in retail, brands must seamlessly blend digital and physical experiences to create dynamic and engaging environments. The NRF Big Show made it clear that this integration is essential. These generations prioritize immersive and interactive experiences that reflect their values and lifestyles. Retailers must adapt by creating environments that showcase products while also providing opportunities for social interaction and personal expression. By merging digital experiences—such as augmented reality displays, mobile apps, and interactive kiosks—with physical spaces, brands can create memorable moments that deepen customer loyalty.

During our time at NRF 2025, we had the opportunity to meet with hundreds of retailers, influencers, analysts and more. From our conversations and what we saw at the show, we pulled together other key areas to watch in retail for 2025.

Enhanced loss prevention strategies are critical.

To protect against rising ORC activity and fraud, retailers must first understand it—and technology brands have been working overtime to help their customers do just that. Exhibitors and speakers stressed the importance of thinking outside the box and beyond the exit to find solutions that adequately address this persistent challenge.

Improvements to loss prevention suites were on full display. Biometric recognition solutions were popular features at the show, as were enhancements to intelligence-led loss prevention tools. Over the past year, brands have refined their approach to analytics, allowing retailers more control over the insights they access. Thanks to refinements in data analytics capabilities, retailers can self-identify high-risk areas and glean category-level insights to open new doors for loss prevention strategies.

Of course, next-generation hardware got to share in the spotlight. Active deterrence solutions, in-aisle communication tools and self-unlocking cases all provide retailers with peace of mind without adding unnecessary friction to shopper journeys.

Fostering resilience with RFID.

One of the only constants in retail is change, and operational resilience took center stage at this year’s big show. NRF’s speakers and exhibitors acknowledged the often-uncertain terrain retail businesses must navigate, offering sessions that discussed strategies to support resilience amid market shifts and solutions that help retailers anticipate tomorrow’s challenges so they can get ahead of them.

RFID-supported inventory intelligence solutions—which give retailers a clear, accurate and up-to-date picture of what’s in stock—were popular with attendees. These systems can help streamline merchandising, fulfillment and replenishment based on sales, customer and supply chain data. This helps ensure high-demand items are in stock and on shelves when they’re needed to preserve experiences, create strategic value and protect bottom lines from lost sales.

Talk of industry resilience was, perhaps, overshadowed by the importance of community resilience. Held against a backdrop of Los Angeles’ raging wildfires, the Big Show also served as a reminder of the important role that retailers play for their communities in times of hardship.

Retail media is on the rise.

The expansion of retail media networks (RMNs) picked up steam in 2024, and the model is on course to transform the industry this year. P2PI estimates that retail media advertising spending will surpass linear TV spending by the end of this year. This model is the logical progression of omnichannel experience building, ensuring continuity of shopper experiences, allowing retailers to take advantage of previously under-utilized space and helping brands to connect with customers in more meaningful ways.

Many NRF 2025 exhibitors showcased products designed to enable store-as-a-media-business models as RMNs become more established in the industry. Advancements to digital displays serve as one example of the direction in which technology for RMNs are headed, as they can expand usable ad space and enhance moments of connection with consumers. These solutions may also help to reduce shrink and combat organized retail crime (ORC). Paired with beyond-the-store shopper mobility insights enabled by collaborations between technology brands and data-analytics specialists, next-generation displays can help retailers elevate their understanding of shoppers to refine advertising tactics.

Sustainable strategies are essential.

Sustainability continued to drive conversations at this year’s show, with big names like IKEA U.S., Target and Walmart presenting their visions for the future of responsible retail. The verdict is that playing the “long game” is the best route to a more environmentally friendly industry, with retailers and tech brands prioritizing upgrades to infrastructure to make circular models, resale options, supply-chain partnerships, buy-back programs and other operational adjustments easier to manage.

Retail technology and hardware brands appeared to be thinking along the same lines, with practical solutions—rather than flashy slogans—taking center stage. Vendors showed off the enhancements they’ve made to their tried-and-tested technologies in their efforts to make sustainable change accessible to retailers of all sizes.

The above is a selection of the topics and ideas at the forefront of the Show, but they are by no means the only factors that will guide retail in 2025. Perhaps the most impactful takeaway from this year’s show was the power of collaboration to drive innovation. NRF 2025 served as a striking reminder of the retail industry’s resilience and ingenuity, highlighting the progress we’ve made, the challenges ahead and how we can tackle them—together.

To keep up with the future of retail, follow #SensormaticSolutions on LinkedIn, X and YouTube. Read more about Sensormatic Solutions innovations at NRF 2025 at www.sensormatic.com/media-center.