New Concepts in Retail

May 2025

Retailers’ constant experimentation with new concepts and formats helps to lay the groundwork for the industry’s future. For this reason, Euromonitor International profiles the most innovative new concepts in retail each year. This edition explores innovation across five key areas: New Digital Interfaces, Responsible Retail, Experiential Retail, Data-Driven Retail, and Simplified Shopping.

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Key Findings

New Digital Interfaces

Technologies like AR/VR, the metaverse, livestreaming and social commerce are revolutionising retail and helping to create a more seamless shopping journey. Retailers leveraging these technologies can build strong, loyal customer bases and thrive in an increasingly digital world.

Responsible Retail

Retailers are diversifying their responsible practices to promote positive environmental and societal impacts. These moves aim largely at boosting brand reputations, but they also translate into new initiatives focusing on sustainability, transparency, diversity and inclusion. In Western Europe, this trend is reinforced by stricter regulatory requirements on business practices.

Experiential Retail

Retailers are embracing experiential retail concepts that rely on multisensory tools to transform their physical selling spaces into engaging and immersive locations that reflect their core values, entertain customers and create a sense of community. This trend is also resulting in the emergence of phygital retail spaces, bridging the gap between online and offline stores.

Data-Driven Retail

More businesses are relying on AI-powered advanced technologies to develop effective data-driven strategies across their value chain. This trend is supported by intensified competition, accelerating advancements in areas like generative AI natural language processing capacity, resulting in the emergence of more hyper-personalised services.

Simplified Shopping

With consumers increasingly seeking convenient and value-driven solutions, retailers look to inject new life into the in-store shopping experience. Supported by technology, they are adopting solutions such as self-check out and novel fulfilment options that meet the evolving needs of their customers and help them stay competitive in an increasingly digital retail landscape.

Why read this report?
Key findings
Retailers must constantly innovate to align with consumers’ needs and demands
Advanced technologies are transforming the face of retail
This briefing will explore retail innovation through the lens of five themes
As e-commerce triumphs, digital innovation is transforming retail
Retailers utilise digital tools to strengthen customer connections
Integrating AR/VR and loyalty are key focus areas for retailers’ digital interfaces
Integrated loyalty programmes and payment methods enhance retailers’ digital interfaces
Retailers craft new customer connections through their digital interfaces
The rise in climate-change related disasters underscores the need for sustainability
A looming sustainability target deadline will accelerate adoption of responsible retail
Sustainability concerns are impacting the behaviour of retailers and consumers
More retailers are adopting identifiable sustainability practices to boost consumer trust
Responsible retail practices can offer inclusivity, as well as sustainability
Many retailers are making their physical stores more engaging and less transactional
Retailers are trading excess inventory space for memorable experiences
Retailers and consumers agree that embracing experiential retail increases foot traffic
Retailers are making shopping in stores more entertaining in the post-pandemic era
More retailers are embracing a multi-sensory approach to elevate shopping experiences
Retailers are increasingly leveraging advances in generative AI to improve processes
Investing in advanced technologies is becoming a key differentiator in retail
The impact of generative AI on the retail space is only just beginning to be felt
Generative AI-powered chatbots are revolutionising customer interactions online
Data-driven retail innovations are not limited to those powered by generative AI
Retailers are redesigning the store experience to match online convenience
Simplifying the shopping experience helps retailers prepare for what is coming next
Retailers are using novel technologies to simplify shopping and buck the labour crunch
Innovative retail solutions enhance convenience and efficiency
Strategic partnerships and automation reflect retailers’ drive to offer greater convenience
Recommendations for growth
Evolution of new concepts in retail
Questions we are asking
About Euromonitor’s Syndicated Channels Research

Retailing

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, and wholesale sales (e.g. Cash and Carry). 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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