Fashion trends may come and go but retail trends are a little more long-lasting – or are they? With influence from technology to customer behaviour affecting how we’ll shop now and into the future, what trends are showing up in retail this year?
Current retail landscape
The Irish retail industry consistently punches above its weight on the global stage, with a quality of offering that’s truly world-class, says Jean McCabe, CEO, Retail Excellence Ireland. “Our retailers aren’t just keeping pace; they’re often setting trends, driven by a unique blend of innovation, adaptability, and deep-rooted customer focus.
“What sets Irish retail apart is its distinctive offering, underpinned by the strength of ‘Brand Ireland’ globally – an asset that cannot be underestimated. Our exceptional craftsmanship, materials rooted in Irish heritage, and renowned customer service create a retail experience that’s hard to replicate.”
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Keeping pace with innovations
The retail landscape is evolving rapidly, with exciting developments reshaping the shopping experience, says McCabe. “The integration of AI into retail operations is opening new possibilities, allowing retailers to streamline operations and harness data in unprecedented ways. This technology isn’t just about efficiency; it’s creating smarter, more responsive retail environments that can anticipate and meet customer needs in real time.”
Alongside AI, the omnichannel approach is continuing to revolutionise the customer experience, says McCabe. “This sophisticated blend of online and in-person shopping, while challenging to implement, is incredibly exciting when done right. It aims for seamless consumer engagement across all channels, making the overall experience more satisfying and convenient.
“Other innovations like Augmented Reality (AR) and Virtual Reality (VR) are bringing products to life in new ways, while sustainability initiatives are appealing to environmentally conscious consumers. Stores are also evolving into experience centres, offering more than just products but creating community hubs and brand loyalty.”
However, to fully capitalise on these developments, retailers need solid foundations. There’s enormous potential in the Irish market, but tapping into it requires addressing several key areas. An extensive plan to tackle retail crime and antisocial behaviour is crucial, as is dedicated government support.
AI is not just for fitting rooms
Artificial Intelligence is making big inroads now in “back of house” in the retail sector, says Scott Frisby, head of strategy, Elavon Europe. “Logistics, delivery, new shop opening location strategy, etc, are all being improved and enhanced by AI’s ability to understand an individual retailer’s situation and scan vast amounts of input to create customised recommendations.
“The next stage is AI in front of house: customised-to-the-client chatbots or AI sales assistants. It’s not something we expect to see just yet on Irish high streets but coming in the medium term.”
Online/offline trends to watch for
Frisby says that pop-up bars and shops remain popular, especially among those consumers who spend the most or go out the most. “These high-frequency consumers are driven by curiosity and discovery.
“Social media has historically been the communication vehicle for pop-ups, and whilst the hospitality sector has led the way here, we expect more retailers to rethink whether a pop-up, collaboration or event-linked presence is right for them.”
Go wherever the shoppers are
According to KPMG’s Towards a Seamless Commerce report, tomorrow’s consumers expect retailers to meet them where they are – online, in-store and on social media – and deliver the same experience regardless. To meet that demand, companies need to develop seamless, connected capabilities across the entire organisation. “Seamless commerce is the third, technologically driven, wave to help transform retail in the past three decades. This revolution is happening in different ways – and at differing speeds – across various kinds of retailers (physical, pure play digital and hybrid), all kinds of sectors (particularly advanced in grocery) and many countries (China and India are in the vanguard of change).
“Innovative retailers are making innovative use of physical stores, turning them into delivery hubs, transforming them into multi-media experiential centres (which require less stock) where shoppers can explore virtual product lines and order in-store for swift delivery.”
McCabe agrees. “Infrastructure improvements, both physical and digital, are necessary to create shopper-friendly environments and support the tech-driven future of retail. This includes improving access to town and city centres and investing in high-speed internet for seamless omnichannel experiences.”