2 days ago
6 trends reshaping the future of retail: Robot shopkeepers, AI assistants, private labels and more
The global retail sector is on the cusp of sweeping transformation over the next decade, according to a new report by Bain & Company.
Titled ' The Future of Retail: Six Disruptions That Could Shape the Next Decade,' the report urges retailers to look beyond immediate pressures like inflation and tariffs, and instead focus on long-term structural shifts driven by technology, consumer behaviour, and new economic models.
Marc-André Kamel, partner and global head of Bain & Company's Retail practice, said: 'Retail is on the brink of transformation. These disruptions are not speculative, they're already taking hold.
'As businesses manage tariff turbulence and other immediate concerns, they can't afford to lose sight of the long-term evolution of the strategic landscape. Our research convinces us that the industry will be comprehensively altered over the next five to 10 years, setting the stage for a retail renaissance.'
Six key disruptions changing retail forever
Algorithms and robots will run businesses: Automation will dominate pricing, promotions, and merchandising – leaving behind retailers that resist AI integration
Customers will cheat on brands with AI shopping agents: As AI assistants make purchasing decisions, brand loyalty and digital marketing strategies will need a full rethink
Value will become more personal and contextual: Real-time, data-driven personalisation will outweigh price as a key driver of customer satisfaction
Grocers will evolve into fast-moving consumer goods powerhouses: The rise of private-label brands will blur lines between retailer and supplier, offering exclusive products and higher margins
You might not need as many stores as you think: Brick-and-mortar locations must evolve – potentially serving as fulfilment centres, brand experiences, or subleased spaces
The hunt for scale will cross borders: Global M&A and strategic alliances will be essential for retailers to fund tech upgrades and remain competitive
Retailers are increasingly moving beyond traditional trade, tapping into new revenue streams in:
Retail media
Third-party marketplaces
Financial services
Logistics
According to Bain, these 'beyond trade' activities accounted for 15 per cent of sales and 25 per cent of profits in 2024, up from just 10 per cent in 2021.
Kamel said: 'No one can predict the future with certainty but we're already seeing how the winning retailers are diversifying their trade. Scenario planning can help retail leaders think beyond the quarterly cycle and get ready for what's coming.
'Those who act early and reinvest strategically will help lead a new era of retail excellence.'
