Retail continues to undergo rapid transformation. In 2024 and 2025, the sector grappled with mounting pressures – from the ongoing cost-of-living crisis and geopolitical tensions to trade barriers among major economies and the rapid pace of technological innovation. Both online and offline models are evolving, requiring not only investment but also a clear vision for how to harness new technologies effectively.
70% of retail professionals in 2025 believe that the pursuit of value will be the most important trend in the industry over the next five years
Source: Euromonitor Voice of the Industry Survey 2025
In light of this, to remain competitive, retailers are focusing on delivering greater value to clients through personalised experiences and active customer engagement. Retailers are also exploring new channels and innovative methods of selling and communication. At the same time, there is a pressing need to rethink both internal and external operations to drive efficiency – by streamlining supply chains, optimising logistics and embracing automation.
Many retailers are shifting from long-term strategies to more tactical, short-term planning in response to market uncertainty. Adaptability remains a critical component of success in today’s retail landscape. Retailers are not only exploring new strategies to stay ahead of market shifts, but are also rapidly improving product quality, enhancing services, and implementing more seamless omnichannel approaches to drive growth and maintain competitiveness.
Online sales drive growth, but physical retail remains dominant
Global retail sales are projected to grow at a compound annual growth rate (CAGR) of 2% in constant terms (ie after stripping out the effects of inflation) between 2024 and 2029, while e-commerce is predicted to grow more rapidly, recording a 7% CAGR. Despite this faster pace, e-commerce will still account for only 28% of total retail sales by 2029, according to Euromonitor International forecasts. The majority of retail sales will continue to take place in physical stores; however, digital channels will increasingly influence nearly every consumer journey. This underscores the importance of viewing the customer experience holistically, and developing retail strategies that integrate social media, technology, omnichannel experiences and other key elements.
While long-term strategy and vision remain essential, the ability to adjust quickly to shifting market conditions is equally important. Success will depend on a retailer’s capacity to balance strategic foresight with the flexibility to respond in real time, ensuring resilience, relevance and sustained competitiveness. This balance is exactly why business events and industry gatherings matter. They provide a forum for leaders to step back, assess emerging challenges and align on the innovations needed to thrive in a fast-changing landscape. Events like the FT Future of Retail Summit play a crucial role by bringing leaders together to share ideas, tackle common challenges and shape the industry’s future. Beyond offering fresh insights, these gatherings strengthen relationships and forge the trust and partnerships needed to innovate and stay resilient in uncertain times.
London will host the Future of Retail Summit on 7 October 2025, blending in-person and digital participation to tackle the most urgent questions facing retail today. Euromonitor International is happy to be a partner at the event and to discuss the most recent – and most impactful – retail strategies.
For deeper insights and preparation to discussions, see our report Competitor Strategies in Retail, highlighting how retailers are adapting to stay competitive.