Retail in 2025 isn’t evolving. It’s already transformed.
That was the message loud and clear in our June IPOS LIVE webinar, where Tim Nash revisited his trend predictions from January. Just six months on, it’s evident that the brands who are thriving haven’t waited for change – they’ve led it.
From immersive brand activations to emotionally intelligent store design, here’s a deeper dive into the retail trends reshaping the second half of 2025, and what it means for your brand.
1. Retail Has Become Theatre – Literally
In 2025, physical retail spaces are no longer just places to shop. They are stages. Brands are designing their stores and pop-ups like performances, complete with storytelling, set design, emotional arcs, and dramatic reveals.
This is what we mean by retail theatre. It’s about using design, sound, texture, lighting, and narrative to immerse your customer in a brand world they can feel, not just view.
Example: Longchamp “Live Green” campaign Longchamp flipped the traditional retail model by starting with the physical experience, not the product or campaign shoot. A tactile, scent-rich space delivered a multi-sensory experience that sparked curiosity and joy. The emotional resonance? Deep. And the ripple effect across social and digital? Seamless.
Why it matters: Immersive retail increases dwell time, boosts engagement, and drives higher emotional ROI, because people remember how you made them feel, not just what you sold.
2. From Omnichannel to Transmedia Storytelling
The concept of omnichannel is now dated. In 2025, the best retail campaigns use transmedia system design, activating one story across many platforms, each with its own unique expression.
Rather than duplicating content across channels, brands are creating flexible narratives that unfold across physical retail, online experiences, social content, influencer engagement, and pop-ups, in ways that reward exploration and feel fully connected.
Example: Gentle Monster x Bratz For a single product (foldable sunglasses), the brand built a surreal brand universe spanning sculptures, AI-powered virtual try-ons, global pop-ups, and social-first storytelling. Every interaction felt like part of the same immersive world, across Seoul, LA, and Bangkok.
Why it matters: Consumers interact with a brand across 3+ touchpoints before making a purchase. Transmedia storytelling builds trust, drives discovery, and lets your audience choose their own entry point.
3. Cultural Fluency Is the New Consistency
Global brand rollouts used to follow a cookie-cutter approach. But in 2025, cultural relevance beats consistency every time. Cultural fluency in retail design means building spaces that reflect, and respect, the city and community they exist in.
It’s about designing stores that feel like they belong to the street, not just the brand.
Example: Adidas Originals, Dosan Park, Seoul This striking flagship reimagines a former residential building as a retail space that feels distinctly Seoul. With raw stone, brushed metal, local artist collaborations, and hyperlocal product drops, the store is rooted in its location – not just its brand DNA.
Why it matters: Today’s shoppers, especially Gen Z, expect brands to earn their place. Localisation builds trust, encourages return visits, and supports long-term brand loyalty.
4. Gamification Isn’t a Gimmick – It’s Infrastructure
Retail in 2025 is interactive by design. Gamification in retail is no longer just a playful extra – it’s a core mechanism for engaging next-gen consumers.
Whether it’s claw machines, collect-to-win promotions, vending games or immersive mini-challenges, successful activations invite participation and reward curiosity.
Example: Claw machine activations by Louis Vuitton & mass brands From luxury to high street, the claw machine is back, and not by accident. It builds suspense, encourages dwell time, and creates user-generated content that practically posts itself.
Why it matters: Gen Z and younger Millennials are digital natives raised on Roblox and gaming culture. Tactile, lo-fi, gamified experiences connect emotionally, visually, and socially, and are easy to scale.
5. Emotional Retail Is Now the Brief
Consumers don’t need to go in-store anymore; so if they do, it better feel good. Today’s best retail activations serve as emotional reset buttons. In fact, 3 in 5 consumers now describe in-store time as an emotional refresh (WGSN).
That’s why emotional experience design is shaping everything from layout and lighting to sound and scent. The goal? Escapism, joy, connection.
Example: Valentino & AMI Paris cinematic activations From pop-up cinemas to mood-driven installations, these brands build spaces that feel more like film sets than stores, inviting consumers to feel like the main character.
Why it matters: Emotion drives memory. Emotion drives loyalty. If your physical retail space doesn’t move someone, why would they come back?
6. Technology That Enhances, Not Overwhelms
Forget flashy gimmicks. Retail tech in 2025 works best when it’s almost invisible – adding depth and personalisation, not stealing focus.
Technology should support identity, encourage interaction, and spark emotion – not distract from the experience.
Example: Glossier’s “You” fragrance activation In Paris, Glossier used AI-powered storytelling to guide visitors through scent creation without ever announcing the tech. Every detail, from seed kits to floral workshops, supported the product’s message of natural joy, not digital spectacle.
Why it matters: 65% of Gen Z say tech should be fun, not just functional. Use it to tell a story, not sell a feature.
Retail Has Changed. Have You?
The brands getting it right in 2025 aren’t asking “what do we want to say?” They’re asking:
What do we want people to feel?
What’s the story they’re stepping into?
What world are we inviting them to co-create with us?
Retail isn’t about what you sell, it’s about what people become when they experience your brand.
If your spaces aren’t designed to stir emotion, invite interaction, and live across every touchpoint, you’re not just behind. You’re being ignored.
Catch the full webinar replay here. Watch the session now and get the full insight from Tim Nash and the IPOS team.