In 2025, the retail industry experienced modest 2% growth. Driven by cost pressures, trade disruption and changing demand, retailers are shifting from growth-led models to resilience and profitability. Five strategic imperatives define this shift. Retailers are rebuilding value architecture, restructuring supply chains and strengthening financial resilience. Retailers look to redesign demand creation, adapting to new discovery pathways in AI-driven environments.
Delivery
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Key Findings
Social media has become a core element of retailers’ strategy
Social media has evolved into a powerful sales channel, influencing consumer behaviour and reshaping retail strategies. Retailers are increasingly integrating social commerce tools and partnering with influencers to drive engagement and sales. Being active on social platforms is now essential for reaching and converting today’s digital-first consumers.
Retailers are prioritising their value proposition over relying solely on price reductions
In response to economic pressure and evolving consumer values, retailers are shifting from aggressive price cuts to value-based pricing strategies that emphasise quality, service, and experience. Rather than competing solely on price, leading brands are investing in customer-centric offerings to build loyalty and long-term profitability.
Wellness is reshaping the in-store retail experience
Experiential retail has been a major trend for several years, particularly in the post-COVID-19 landscape, and it remains highly influential. However, there is now a noticeable shift towards wellness-focused experiences. Retailers are increasingly adopting concepts that cater to consumers’ rising interest in health and wellbeing.
Retailers are adopting a careful approach to implementing generative AI
After the initial wave of hype, retailers are now taking a more strategic and cautious approach to generative AI, focusing on solutions that offer real value. While many are still navigating knowledge gaps, leading global retailers are moving ahead with targeted GenAI implementations to enhance personalisation, operational efficiency, and customer experience.
Tariffs force retailers to rethink their supply chains and pricing strategies
The reintroduction of US tariffs under President Trump has created widespread disruption in global retail, particularly for companies reliant on Chinese manufacturing. Retailers have responded by shifting sourcing, accelerating shipments, and adjusting pricing strategies to manage rising costs and supply chain challenges.
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Key findings
Retail becomes an asymmetric growth equation with rising complexity
Companies at a glance
Amazon emerges as the world's largest retail company by revenue
While legacy players grew, ByteDance steadily reinforced its role in global retail
Retailers drive expansion through exporting commerce models in new market segments
Most retailers rely on flagship banners, but new retail dynamic may drive brand extensions
Global retail still largely fragmented, calling retailers to balance scale and localisation
Retailers are prioritising five focus areas in their business strategies during 2026
Recalibration of value perception among consumers calls for new value architecture
Owning a defensible price-to-value position must be a priority
AI integration transitions from pilots to outcome-driven profitability
Retailers must operationalise AI to drive real productivity and competitive advantage
Retailers continue to face headwinds in the wake of trade volatility
Retailers restructure supply chains as regionalisation replaces global efficiency models
Financial resilience through operational discipline becomes a leadership priority
Retailers must shift from reactive crisis management to building proactive resilience
Rethinking demand creation and customer engagement as new engines drive discovery
Retailers must explore a shopping journey for one
Recommendations/Opportunities for growth
Questions we are asking
About Euromonitor’s Syndicated Channels Research
Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, wholesale sales (e.g. Cash and Carry), and sales through cannabis dispensaries in markets where cannabis is sold legally. Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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