Retail Radar: Retail 2025 – From Automation to AI Agents, the New Rules of Engagement

Retail is evolving fast — not just in theory, but on the shop floor, in supply chains, and deep inside tech stacks. What used to be experimental is now operational. From AI-driven luxury to automated logistics and the rise of AI shopping agents, the shifts happening in 2025 are reshaping how retail functions, connects, and grows.

In this week's Retail Radar, I’m spotlighting the key trends I’m seeing take hold right now — the real innovations making an impact across the UK and global retail. From automation on the high street to the ethics of hyper-personalisation, here’s what matters this week, and what’s coming next.

Luxury giant LVMH isn’t just dabbling – it’s rolling out AI across every part of its operation. From supply chain forecasting and pricing adjustments (in reaction to currency fluctuations) to generative design and even conversational AI in its boutiques, the group’s central AI platform handles over two million queries a month.
Why it matters: In a cooling macroeconomic climate, this isn’t vanity tech – it’s a backbone for operational efficiency, agility and hyper-personalised service. Expect mid-tier and aspirational brands to follow suit by the end of the year.

Walmart is actively preparing for AI shopping agents – bots that can autonomously shop, reorder and even plan themed parties, all via voice or app.
Insight: This marks a real shift. Brand-to-consumer relationships are evolving into brand-to-AI-agent interactions. Retailers need to focus not just on conversion but also on agent visibility – making themselves stand out in a world where AI is the buyer.

With rising labour costs, UK retailers like Currys, Sainsbury’s, Tesco and Ocado are implementing robot packers, AI shelf-monitoring cameras, electronic shelf labels and expanded self-checkouts.
Takeaway: Automation is no longer futuristic – it’s frontline strategy. But as roles change, retailers must rethink customer journeys and invest in upskilling to keep human interaction at the heart.

Personalisation is now table stakes. The frontier is hyper-tailored experiences driven by behavioural data, AI-curated journeys and even facial recognition in-store.
As Vogue Business reports, generative AI is transforming fashion by offering personalised looks and recommendations at scale, while Investopedia explores how retail tech is leaning into self-identity and biometric cues.
Note of caution: Consumers are becoming more aware of how their data is used. Ethical frameworks around transparency, bias checks and consented data use aren’t just nice to have – they’re becoming a necessity, especially with incoming UK and EU regulation.

Retailers are shifting away from clunky, all-in-one platforms in favour of modular, API-driven systems that connect best-of-breed tools across stock, CMS and payments. This composable approach is quietly becoming a new standard, letting retailers scale or pivot without the friction of legacy systems.
Pro tip: When reviewing your tech stack, ask yourself: "Could I unplug this component tomorrow?" Flexibility is now a metric for ROI.

Primark and Next are expanding self-checkout. Zara and M&S are trialling RFID and frictionless exits. John Lewis is testing automated returns. Behind the scenes, LiDAR and smart sensors are quickly becoming standard tools for stock accuracy and real-time inventory visibility.
Bottom line: Physical retail isn’t dying – it’s evolving. Stores are less about transaction and more about discovery, brand immersion and fulfilment logistics.

Retailers are building their own media networks and monetising digital storefronts with in-path promotions and sponsored search. Some are even embedding ads directly into composable checkout flows.
Why this works: Tools like AI search and personalised discovery, already in play at LVMH and others, are showing real returns – making retail media not just a buzzword, but a core revenue stream.

This isn’t just hype – 2025 is the year when retail tech finally becomes foundational. The common thread? Resilience through adaptability. Retailers who embed AI, automation, modular platforms and responsible data use into their operations are best placed to weather whatever comes next.