Retailers to face waning demand in 2025 

Forrester Research releases retail industry 2025 predictions, including more retailers using generative AI technology for shoppers but not for employees.

Research firm Forrester projects that retailers will struggle in 2025 as brands grapple with paying employees higher wages coupled with decreased demand from shoppers.  

Merchants will need to explore technology solutions to offset these forces, according to its recently released report Predictions 2025: Retail.  

“To cultivate long-term growth, every business must be both willing and organizationally ready to continually invest in tech solutions, experiment, and fail — and then apply those learnings to the team and the business,” according to the repot.  

Forrester predicts the following for the retail industry in 2025: 

  • Major retailers will launch biometric-powered solutions to curb theft.
  • Operating profit margins will decrease for U.S. grocery retailers.
  • Temu and Shein’s growth rate will plummet.

Forrester includes more details about these predictions in its report.