The age of intelligent buying: How data and AI are reshaping retail in 2025

Our recently published 2025 Retail Insights Report: The Age of Intelligent Buying, draws on insights from 60 senior buyers, merchandisers, and planners at enterprise retailers ($50M+ in annual revenue). The findings reveal a shift in how these leaders make decisions, prioritize growth, and deliver experiences that earn customer loyalty.

Redefining profitability in 2025

Last year, many retailers were still focused on cost-cutting. Today, profitability has evolved more strategically. Retailers are optimizing product mix, reducing inventory risk, and building more resilient supply chains. These proactive strategies allow teams to protect margins while responding efficiently to consumer demand. Instead of reacting to market pressures, retailers are approaching growth by balancing financial guardrails with long-term objectives.

Data and AI at the forefront 

One of the clearest shifts is the rise of data-driven and AI-assisted decision-making. Where intuition once guided buying choices, quantitative insights now dominate. Nearly 70% of respondents report relying primarily on sales, inventory, and revenue data for forecasting, while AI adoption in buying and planning has jumped from 11% in 2024 to 17% in 2025.

The art of buying isn’t disappearing, though. Top-performing retailers blend analytics with human instinct—using data to answer what to buy and intuition to define why. This dual approach ensures assortments are not only profitable but also relevant, compelling, and aligned with evolving consumer tastes.

Customer-centricity as the new baseline

With margins under pressure, loyalty and experience have become non-negotiable. According to the report, 62% of retailers surveyed noted that they’re investing heavily in personalization, while 60% are investing in omnichannel convenience, from buy-online-pickup-in-store to tailored product recommendations. Customer-first strategies are shaping everything from product assortment to in-store and digital experiences. Interestingly, sustainability—while still important—has temporarily been bumped as a top priority, reflecting the industry’s focus on efficiency and profitability in 2025.

Operational resilience matters more than ever

Retailers also recognize that agility drives competitiveness. Forecasting accuracy, inventory control, and supply chain adaptability are critical to avoid overstock, missed sales, or profit erosion. Retailers are investing in integrated systems, predictive analytics, and strategic partnerships to maintain flexibility, protect margins, and respond quickly to market shifts.

A new era of strategic partnerships and channel management

Expansion is no longer the default path to growth. Fewer retailers plan new storefronts or marketplaces this year, focusing instead on maximizing existing channels and cultivating partnerships that deliver differentiation, reliability, and data-backed insights.

Looking ahead

The 2025 Retail Insights Report shows that retail is moving from intuition to intelligence. Technology, data, and AI are reshaping how decisions are made, yet creativity, taste, and storytelling remain essential. Retailers who master this balance—leveraging precision without sacrificing the art of buying—will define the next chapter of the industry.