Retailers, brace yourselves. 2025 is shaping up to bring a paradigm shift to the industry. Expansion and innovation are no longer separate strategies but rather two sides of the same coin. In fact, as Dr. Bander Hamooh, CEO of Panda Retail Corp., put it at the 2025 RLC Global Forum in Riyadh: it’s time to “expannovate!” (Yes, he trademarked that in our minds.)
The retail landscape is changing faster than ever before. At this point, it’s not survival of the fittest but of the smartest, with resilience and transformation the twin engines driving the industry forward. Whether you’re selling groceries, luxury fashion, or anything in between, one thing is clear: consumers are more demanding, competition is borderless, and the adoption of new technologies is the great equalizer.
Affordability rules, but true value wins
With inflation still pressuring wallets, customers are doubling down on price sensitivity, but they’re not willing to sacrifice quality. The recent escalation in US tariffs has further strained consumer budgets, leading to increased prices on everyday items and more insecurity. This economic climate has fueled a boom of private labels, offering shoppers well-crafted alternatives without the brand-name markup. Discounters are thriving, but as Dr. Hamooh pointed out from this year’s Forum, racing to the bottom on price doesn’t cut it anymore. Instead, offering true value—a mix of affordability, quality, and convenience—is what really matters.
But there’s more. Consumer spending is undergoing a shift, with entertainment, dining, and immersive engagements taking up a bigger slice of the wallet. Retailers who want to stay relevant need to rethink how they engage shoppers beyond product sales. You see, a store isn’t a store anymore, it’s part of an experience.
The omnichannel (r)evolution
Omnichannel is the new name of the game. Today, customers expect to move seamlessly between physical and digital shopping. Apparel Group CEO Neeraj Teckchandani, dropped a truth bomb at the Forum: “Speed is the next battleground.” Next-day delivery is old news. The new frontier? Fulfillment in a matter of hours. Or, as Sima Ganwani Ved, Chairwoman of Apparel Group, put it: “For me, it’s about speed. It’s about instant gratification. It’s about not having to wait 10 or 12 days to get the dress you ordered.”
To make that happen, retailers are investing heavily in AI-powered logistics, automation, and smarter inventory management. Data-driven personalization is non-negotiable. If you’re sitting on millions of customer data points, you should be leveraging AI to understand not just what customers buy, but when, why, and even how. This translates into hyper-personalized offers and an in-store experience that feels tailor-made for every shopper.
Get it right, and you’re building loyalty. Get it wrong, and customers will take their business elsewhere. In 2025, AI is redefining retail. From hyper-personalized shopping to predictive demand forecasting, organizations and brands that leverage data will effectively set the pace of the race.
The battle against borderless competition
The days of competing only with the shop down the street are over. Global e-commerce giants have turned cross-border competition into an everyday challenge. But local retailers are fighting back. Their advantage lies in proximity, customer relationships, and deep market insights. The real defining factor? How they leverage these strengths through innovation, AI-driven personalization, and smart omnichannel expansion.
For Apparel Group, that means expanding its own off-price retail strategy to meet shifting demand while continuing to push the boundaries of omnichannel retail. For Panda, it’s about leveraging partnerships like the one with Ocado to rapidly scale its e-commerce and fulfillment capabilities. The bottom line: Adapt, invest, and rethink, or prepare to be a cautionary tale.
The future is “expannovation”
The overarching theme for retail in 2025 in one word is “expannovation”, a mix of bold expansion, relentless investment in technology, operational efficiency, and customer-centric strategies.
What does this look like in practice? It means retailers aren’t just opening more stores or increasing their digital footprint; they’re scaling intelligently. Expansion is guided by data, ensuring new locations and formats align with shifting consumer behaviors. Instead of a one-size-fits-all approach, companies are adapting.
But expansion alone won’t cut it. To truly innovate, retailers must embrace AI-driven efficiency at every level. A smart retailer in 2025 means shaping industry trends by using real-time data to personalize experiences, optimize supply chains, and ensure that every product is available when and where it’s needed.
And forget the idea of stores as mere transaction hubs. They’re now part of an ecosystem of experiences. Shopping should blend seamlessly with entertainment, dining, and personalized services, creating a journey that feels intuitive, immersive, and curated.
The retail industry isn’t for the faint of heart. So, retailers, take note: expand boldly but strategically, innovate again and again, and make this the year of “expannovation!”
Want to know more on expannovation? Dive into “The 2025 Retail Agenda: Resilience Amid Transformation” discussion at the 2025 RLC Global Forum.
