Placer.ai: Seven retail trends to watch in 2025
Legacy brands are making a comeback. And discount and dollar stores may be in for a “readjustment.”
Those are two of seven trends outlined in a new white paper from Placer.ai’s new white paper, “Retail Trends to Watch in 2025.” Key takeaways from the white paper are below.
•Discount & dollar stores stores may have reached a growth ceiling Discount and dollar stores were some of the biggest beneficiaries of a shaky economic landscape – but slowing foot traffic suggests that this category, too, may be ripe for a readjustment. We see this as a return to the middle – and an opportunity for discount chains to rethink their offerings and operations.
•Innovative value continues to dominate Consumers want to stretch their dollars without sacrificing quality – and reward retailers that offer specialty products and elevated experiences that don’t break the bank. Chains like Trader Joe’s, which keeps things fresh (and inexpensive) by constantly updating its unique private-label mix, and Chili’s, which offers an FSR experience at a QSR price point, are reaping the foot traffic benefits.
•Is convenience still king? It depends who’s asking. The foregone conclusion that “convenience is king” may not be so foregone after all. Shoppers are making shorter trips to grocery stores, traveling farther for specialty items, and visiting multiple chains to get what they want – suggesting that they are willing to go the extra mile to find what they’re looking for.
•Robotize my meal But convenience still resonates – especially in dining, where consumers are flocking to restaurants that harness tech to speed things up. Chipotle’s avocado-peeling robot and McDonald’s automated restaurant are drawing crowds – showcasing the power of tech to increase visits and get customers in and out the doors faster.
•Retail, shrinking and growing Retailers are meeting consumers where they are (literally!) with both smaller and larger-format stores. Macy’s is growing its share of local weekday visits by going small – while home improvement brands Harbor Freight Tools and Ace Hardware are servicing smaller growth markets with the help of a leaner square footage. Other chains, like Hy-Vee, are leaning into large-format, one-stop shops that attract higher shares of weekend visits.
•Legacy brands are making a comeback Apparel and lifestyle chains that were hot in the 90s and aughts – brands like Gap, Abercrombie & Fitch and Anthropologie – are back on the rise. Anthropologie has seen steady visit growth in recent years with foot traffic to the chain now above pre-pandemic levels.
•Millennials remain a coveted demographic And brands like Sam’s Club are attracting younger consumers with convenient, value-oriented shopping experiences. Between Q3 2019 and Q3 2024, The share of “Singles and Starters” in Sam’s Club’s trade area grew from just 6% above the nationwide baseline to 15% higher than average.
Other brands are finding success by leaning into nostalgia offerings: Taco Bell made a splash with its “Decades Menu” — driving visits from far and wide.
Placer.ai’s "Retail Trends to Watch in 2025" white paper can be found here.
