Retail in 2025: Resilience, Reinvention, and the Road Ahead

February 2025 Minute

A Market in Motion.

As 2025 ramps up, the retail landscape continues to shift under the weight of economic factors, evolving consumer behaviors, and technological advancements.

Sandy Sigal, CEO and President of NewMark Merrill, acknowledges the uncertainties — rising interest rates, economic pressures, and the lasting impact of natural disasters — but remains optimistic about the opportunities ahead.

“There’s been a shortage of new construction for years, which means well-located, community-driven shopping centers will continue to outperform,” Sigal notes. In a time of disruption, customers crave stability, making vibrant, welcoming retail centers more important than ever.

Retail Trends Taking Shape.

So what’s next for retail? According to Sigal, technology will be a driving force in 2025.

  • Artificial Intelligence. From optimizing store layouts to enhancing customer experiences, AI will play a critical role in helping both retailers and owners understand and respond to shopper behavior.
  • The Power of Physical Spaces. While e-commerce continues to thrive, Sigal remains firm in his belief that brick-and-mortar spaces are irreplaceable. “The human desire to congregate, touch, feel, and experience will always win out,” he says.
  • Affordability Matters. As living costs rise, value-driven retail will be key. Retailers and landlords must be attuned to what their customers need and offer meaningful experiences that justify spending.

Unlocking the Holy Grail of Retail Insights.

One of the most exciting developments for NewMark Merrill in 2025 is the near-breakthrough in understanding what truly drives consumer behavior. Sigal describes this as being “close to the holy grail” — a world where technology can definitively show what motivates customers to visit, engage, and buy.

“For the first time, we can measure what works,” he explains. “No more guessing. We’ll know if an event, a promotion, or a specific experience actually moves the needle.”

This data-driven approach will allow us and our tenants to refine strategies with precision, creating a better shopping experience for all.

NewMark Merrill’s 2025 Priorities.

For NewMark Merrill, sticking to core values while embracing change is our strategy for the year ahead.

  • Investing in Communities. Enhancing existing properties, rather than focusing solely on new developments, will ensure our portfolio stays relevant and operational.
  • Empowering Tenants. We’re leveraging cutting-edge data tools to help retailers better understand their customers and maximize their potential.

Championing Team Growth. A commitment to training, innovation, and collaboration will help the NewMark Merrill team remain at the forefront of industry shifts.

A Year of Opportunity.

Despite the challenges, 2025 is set to be a year of reinvention and resilience. With a focus on community, technological innovation, and customer-centric strategies, NewMark Merrill is poised to thrive.