The Evolution of Retail: Top trends and insights for 2025

As digital and physical shopping experiences continue to merge, retailers face growing pressure to balance operational needs with rising customer expectations. In 2025, the focus sharpens on meeting the increasing demand for flexible delivery and collection options. Retailers are adapting by enhancing last-mile delivery and rethinking their return strategies to deliver more convenient, customer-centric experiences.

In this blog, we explore the key trends shaping retail delivery and returns this year, offering insights into how brands can stay ahead in an increasingly competitive and fast-evolving landscape.

Third-party delivery apps bring new opportunities and challenges

As consumer expectations for speed and convenience grows, retailers are increasingly integrating these logistics providers and platforms into their omnichannel strategies to meet demand and stay competitive.

Inspired by Amazon’s lightning-fast delivery, many retailers are turning to third-party delivery services to better meet consumer expectations. Target, for example, has benefited from its 2017 acquisition of Shipt, reporting that average shipping times for all Target orders are nearly a day faster than a year ago. Home improvement retailer Lowe’s recently introduced nationwide same-day delivery in partnership with omnichannel fulfillment provider OneRail, allowing in-stock items from local stores to be delivered to homes and job sites the same day if ordered by 2 PM.

While there are many opportunities with third-party delivery apps for retailers and significant benefits for customers, there are also some drawbacks. One major challenge is the loss of control over customer experience. Once an order leaves the store, who is held responsible if it arrives late? On the other hand, if the experience is positive, does the customer credit the retailer or the third-party provider? In addition, concerns are also being raised around data ownership, as third-party platform data often belongs to the delivery service, not the retailer. Losing customer insights can make it harder to build long-term relationships and drive repeat business.

This year, the push for speed and convenience is clearly shaping the future of retail. However, questions around customer ownership, brand control, and long-term profitability remain — leaving the true impact of these third-party delivery partnerships uncertain.

The rise of social commerce

In the early days of social commerce, many consumers were hesitant to make purchases directly through social media platforms. A May 2023 survey by PYMNTS.com found that approximately four in ten shoppers avoided social commerce due to concerns about how their personal data was handled. However, as social shopping has become more mainstream and platforms have improved user experience, trust has grown across all age groups. Younger generations have been early adopters, but older consumers are also increasingly embracing it. In the United States, 23% of social buyers are between the ages of 25 and 34, with more than 66% under 44.9. Those aged 45 to 54 make up 13.5% of social shoppers.

This year, expect to see retailer ramp up their social commerce efforts, leveraging strategic collaborations with influencers and content creators to expand their audience. By doing so, they will look to drive higher conversion rates, increase revenue, and strengthen customer loyalty. Given that the social commerce market size is expected to reach $8.5 trillion by 2030, it’s evident that social commerce will continue to unlock new, long-term opportunities for retailers in 2025 and beyond.

BOPIS and BOPIL are shaping the next wave of retail

Buy Online, Pick Up In-Store (BOPIS) remains a popular shopping method among consumers, with the U.S. market projected to reach an impressive $509.4 billion by 2033. This year, retailers are doubling down on their BOPIS offerings by leveraging advanced technologies — such as retail parcel lockers — to streamline operations and boost supply chain efficiency. With nearly two-thirds of U.S. stores now offering BOPIS, and 72% of consumers favoring the convenience of buying online and picking up in-store, it has become an indispensable part of the shopping journey — and one that shows no signs of fading.

Looking ahead to the rest of 2025, both BOPIS and its counterpart, Buy Online, Pick Up in Locker (BOPIL), are expected to play an even greater role in retail. These options will empower businesses to meet customer demands for flexibility while adapting to industry shifts and evolving consumer expectations

Managing returns in 2025: Balancing strategies and profitability

According to a report by the National Retail Federation (NRF), consumer merchandise returns in the United States are expected to reach $890 billion this year, accounting for nearly 17% of retailers’ annual sales. This growing trend highlights the significant impact returns have on profitability and supply chain efficiency, making it a critical challenge for retailers to address in the coming year.

One major factor driving increased returns is “bracketing,” where shoppers purchase multiple items with the intent to return some. Additionally, “friendly fraud,” or “wardrobing”—the practice of buying, wearing, and then returning items—has been on the rise, contributing to widespread abuse of return policies. Alarmingly, 69% of shoppers admit to engaging in this behavior.

In 2025, retailers will continue refining their return processes while focusing on improving the overall shopping experience to minimize return rates. Expect to see many retailers adopt stricter measures to curb excessive returns, such as increasing return shipping fees and denying returns from customers who repeatedly abuse policies. Some retailers may also introduce the “keep-it” refund approach, which allows customers to keep items while still receiving a refund, helping to reduce return shipping costs.

Unlocking retail success with retail parcel lockers

Retail parcel lockers are quickly emerging as a game-changing solution for bridging the gap between online and in-store shopping. By channeling order pick-ups and returns through retail smart lockers, retailers can create a seamless, scalable approach that aligns with omnichannel strategies and supports business growth objectives.

How do retail parcel lockers help?

• Streamlining Operations: Retail parcel lockers enhance operational efficiency, helping retailers address labor shortages and retention challenges while gaining a competitive edge.
• Boosting Customer Satisfaction: By offering a fast, reliable, and self-service solution, lockers improve net promoter scores (NPS) and meet evolving customer expectations.
• Reducing Costs: Leveraging store locations and inventory, lockers lower the costs associated with order fulfillment and returns by providing localized, one-stop options for deliveries and returns.
• Supporting Sustainability: Consolidating deliveries to a single retail location reduces greenhouse gas emissions, roadway congestion, and CO2 pollution, contributing to more sustainable operations.

By prioritizing ease and reliability, parcel lockers not only improve the shopping experience but also help foster greater customer loyalty.

More to come in 2025

This year, retailers are preparing for a new wave of innovation, focused on creating a seamless delivery and returns experience that meets the evolving demands of consumers. Their objective is to implement strategies and processes that not only address current expectations but also anticipate future needs — ensuring scalability, efficiency, and long-term success.

By adopting advanced technologies and solutions, such as retail parcel lockers, retailers are building a robust foundation for the modern retail landscape. These efforts aim to go beyond the status quo, driving the industry forward and setting new standards for innovation and customer satisfaction.

Click the image below to download our white paper, “Forecasting the Future: Our predictions for retail in 2025”, for more insights on what to expect in 2025.