The pace of change in the retail sector has accelerated dramatically over the past year. What began as a series of cautious digital experiments has evolved into a full-scale technological shift, driven by consumer expectations, supply chain pressures, and breakthroughs in AI, automation, and immersive commerce.
In this overview, we examine how leading retailers and technology providers are redefining customer experience, operations, and engagement strategies. From TikTok's regulatory turbulence and Amazon's subscription model to Meta's fully automated ad tools and the quiet retreat from NFTs, the patterns emerging in 2025 are not just reactive—they're strategic.
Retailers are navigating a fast-changing environment shaped by:
- Regulatory shifts around platforms like TikTok
- AI upskilling initiatives from brands like IKEA
- Edge technologies are improving in-store responsiveness
- Mobile apps offering immersive, personalized experiences
- Virtual commerce platforms and 3D shopping tools
- Subscription-based grocery models from companies like Amazon
- Industry pullback from speculative assets like NFTs
- Automation of digital advertising through generative AI
Each case below provides a snapshot of where the industry is headed and what it takes to stay competitive in a landscape where innovation, ethics, and execution are inextricably linked.
The TikTok Ban and AI Upskilling at IKEA
A significant focus in 2024 was on the potential ban of TikTok in the U.S., a development that has since materialized. In early 2025, the U.S. Supreme Court upheld legislation forcing the app's removal from app stores, although enforcement has been temporarily delayed. While TikTok remains operational, advertiser spending surged by 57% early in the year, even as brands increasingly diversify toward Instagram Reels and YouTube Shorts.
Meanwhile, IKEA has scaled up its AI literacy program, training over 3,000 employees and 500 leaders in the ethical use and practical implementation of AI. The initiative is now part of a broader commitment: in 2025, IKEA joined the Partnership on AI to help shape responsible practices for emerging technologies across the retail sector. The upskilling program includes role-specific training in AI fundamentals and digital ethics.
Advancing Edge and Mobile Retail Technologies
VMware's software-defined edge solutions have evolved to address the increasing demand for efficient management of edge-centric applications in retail environments. The introduction of VMware Edge Compute Stack 3.5 offers zero-touch orchestration and pull-based architecture, enabling retailers to deploy AI-driven applications across multiple locations seamlessly. These advancements facilitate real-time inventory management and personalized customer experiences, enhancing operational efficiency and customer satisfaction.
Pottery Barn Teen has significantly enhanced its mobile app to provide a more immersive and convenient shopping experience for college students. The "Build My Bed" 3D visualizer allows users to customize their dorm beds with various styles and accessories, offering a realistic preview before purchase.
Additionally, the "Ultimate Dorm Wishlist" feature enables collaborative planning, allowing students and their families to curate and share their lists of dorm essentials. The newly introduced "Dorm Concierge" service further streamlines the process by providing personalized assistance and coordinating logistics for campus deliveries.
Virtual Shopping Innovations from Hugo Boss and Perfect Corp.
Hugo Boss's launch of the virtual store, Boss House Bali, exemplifies the brand's dedication to integrating style, technology, and innovation to engage customers digitally. This immersive platform enables users to explore curated collections within a virtual environment, reflecting the brand's dedication to enhancing the digital shopping experience.
Perfect Corp. has significantly advanced its virtual jewelry try-on technology by supporting the glTF 2.0 file format. This enhancement enables the creation of more detailed 3D models with enhanced textures and lighting, providing a more realistic and engaging virtual shopping experience for consumers. The update streamlines the 3D model creation process for brands, facilitating faster and more efficient deployment of virtual try-on solutions.
Amazon's Grocery Subscription and the Decline of NFTs
Amazon has broadened its grocery delivery subscription service to enhance accessibility and affordability for a broader customer base. Prime members can now opt for a $9.99 monthly or $99.99 annual plan, offering unlimited grocery deliveries on orders over $35 from Amazon Fresh, Whole Foods Market, and various local grocery and specialty retailers. Customers with a registered EBT card can access the same benefits for a discounted rate of $4.99 per month, even without a Prime membership. The subscription includes perks such as free one-hour delivery windows, unlimited 30-minute pickups, and priority access to recurring reservations, aiming to provide a seamless and cost-effective grocery shopping experience.
The NFT market has experienced significant volatility, leading retailers to reassess their involvement in this digital asset space. High-profile brands like Nike's Rtfkt have faced challenges, with Rtfkt announcing plans to cease operations by January 2025 due to declining interest and market saturation. Despite a 15% uptick in NFT sales in May 2025, following a prolonged downturn, the market remains unpredictable. Technical hurdles, instances of fraud, and waning consumer enthusiasm have prompted many retailers to shift their focus away from NFTs, instead prioritizing more stable and consumer-trusted digital engagement strategies.
One's Growth Through Performance Tech and Design
Swiss athletic brand On has continued its global expansion, driven by its proprietary technology, which offers adaptive cushioning through cloud-shaped midsoles. In 2025, On introduced a computer-optimized midsole design that ensures smoother transitions and enhanced comfort for runners. The brand also collaborated with luxury fashion house Loewe to blend performance and style. These innovations have contributed to On's significant growth, with a 29.4% increase in sales in 2024 and a 204.5% rise in profit, totaling CHF 2.32 billion and CHF 242.3 million, respectively.
Meta's AI Advertising Tools and the Future of Retail
Meta Platforms is advancing its AI-driven advertising capabilities with tools like AI Sandbox and enhancements to the Meta Advantage+ suite. These innovations aim to streamline ad creation and targeting by leveraging generative AI to produce text, images, and videos, while also optimizing audience reach and engagement. By the end of 2026, Meta plans to enable brands to fully automate ad campaigns, from concept to deployment, using AI. This shift is poised to democratize advertising, particularly benefiting small and medium-sized businesses that lack extensive marketing resources.
The retail sector continues to evolve rapidly, driven by technological advancements and changing consumer preferences. From AI-enhanced customer experiences and digital payment solutions to immersive virtual shopping environments, retailers are adopting innovative strategies to stay competitive. Companies like IKEA and Amazon are implementing these technologies to enhance operational efficiency and customer satisfaction, setting new industry standards. In this dynamic landscape, success hinges on a commitment to innovation, ethical practices, and a deep understanding of market trends.
