Here are 6 ways how retail will be different by 2035, reveals report
Image: Getty Images/ For illustrative purposes
Retail, as we know it, is on the cusp of a dramatic transformation. In their latest report,
From AI taking over core operations to grocers turning into consumer goods brands, the future is filled with both exhilarating opportunity and existential threat.
Here's a list that reflects what lies ahead—and why retailers need to act now.
Robots and algorithms will run the show
AI isn't just a back-office assistant anymore. Bain predicts that nearly every core retail process — pricing, promotions, category management—could be handed over to intelligent algorithms. Think digital twins simulating decisions, autopilot merchandising, and lightning-fast execution. The result? Traditional retail skills may become commodities, and businesses that cling to old-school methods risk hemorrhaging profit margins.
Still, humans won't be obsolete — talent will shift to strategic, creative, and customer-facing roles.
Your loyal customers will start 'cheating' on you — with AI
Imagine your customers outsourcing their shopping to AI agents that know their preferences better than they do. These bots will auto-purchase groceries, plan meals, and make brand-agnostic decisions in a flash. That spells trouble for retailers that bank on brand loyalty.
Bain urges businesses to prep for a world where 20–30 per cent of shopping decisions could be made without human emotion — or loyalty. The winning strategy? Become the preferred source for these AI agents or develop your own.
Value will get ultra-personal
Forget static price tags. In tomorrow's retail world, value will mean something different to every shopper — and in every moment. A Monday morning commuter might prize speed; a weekend shopper may value inspiration.
Thanks to powerful data tools and generative AI, Bain envisions retailers delivering deeply contextual offers in real time. Success will depend on having rich consumer data and the AI smarts to activate it. It's not just about low prices anymore — it's about relevance.
Grocers will morph Into FMCG powerhouses
Private labels are booming. In Europe, up to half of shoppers already seek them out; by 2035, Bain projects that private label could dominate up to 70 per cent of grocery shelves in some markets. That would blur the line between grocers and fast-moving consumer goods (FMCG) manufacturers.
Retailers will need to rethink supplier relationships while using private labels to fuel exclusivity, brand identity, and resilience in a fragile supply chain world.
Retailers will rethink — and shrink — their store networks
The days of expanding physical footprints may be over. According to Bain, the US grocery market alone may need to cut store count by 15 per cent to regain past productivity highs.
Store closures are no longer just a cost-saving tactic — they're a strategic reset. Fewer stores will serve broader purposes: micro-fulfillment, click-and-collect, or brand experiences. Retailers must now ask: How many stores do we actually need — and which ones are worth keeping?
The race for scale will go global
Local scale used to be enough. Not anymore. Retailers now need cross-border heft to afford the tech investments demanded by today's consumers.
Bain sees a future in which mergers and acquisitions cross national lines — not just to grow footprint but to achieve digital advantage. In this race, regional champions will increasingly become global players, using tech-fuelled muscle to outperform their more isolated rivals.
Disruption is inevitable, preparation is optional
Bain's report underscores that these aren't distant possibilities — they're already starting. The retailers that thrive will be those who look beyond today's operational fires and begin preparing for a new reality shaped by AI, evolving shopper behaviour, and structural overhauls. For those who resist?
The future may arrive much faster than they're ready for.
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