As we close the door on 2024 and look ahead to 2025, there are clear signals of how retail is evolving to meet consumer expectations in a rapidly changing landscape.
Our Tier One Solutions – Retail Shopper Activation team in NYC, led by Christopher Beley and Kyle Falbee, recently conducted a retail analysis throughout Times Square, Rockefeller Center and 5th Ave., to explore how brands and retailers were engaging with consumers during the 2024 Holiday Season. What we found was a fascinating mix of innovative technologies, nostalgic messaging, and exciting pop-up moments—all aimed at creating deeper connections, driving foot traffic, and hopefully boosting customer sales.
Read ahead to see what our industry experts found to be the most compelling trends as we move into 2025, and what insights they’ve gleaned from their big day out.
Retail Shopper Activation Director, Chris Beley, at the Godiva x Rockefeller Center Pop-Up Truck
AI Technology & Digital Engagements: Anticipating Customer Desires
Artificial Intelligence (AI) continues to make its mark across the retail industry, and its influence is only growing in 2025. Our Tier One team found that the AI strategies retailers are using on the customer’s path to engagement are becoming game-changing, key drivers. From shopper assistance to loyalty programs and incentives, AI is playing a crucial role in creating personalized experiences, helping customers who are looking for engagement and connection with the retail brands and retailers they’re loyal to, or are looking to connect with.
AI engagement usages we found particularly exciting include:
AI-driven Shopper Assistance & Concierge Services:
Brands and Retailers alike are increasingly using AI tools to guide customers to what they need—whether it’s in-store navigation or making a purchase—and they do so in a way that’s simple and intuitive.
Linked to your Circle account, Target‘s store navigation features in their app feel like having a salesperson in your hand, able to direct you exactly to where the product you’re looking for is located and will recommend similar items to meet your tailored needs, not to mention, it will also give a heads up to what’s on sale.
Target Circle In-App AI Assistance Feature
Likewise, the seamless experience of the completely automated ordering system at McDonald’s (linked to a McDonald’s Reward account) was satisfying from start to finish. With technology driving every step, they have created an automated system that allows for maximum consumer customization, allowing the user to access earned rewards and deals specific to their profile.
Loyalty Programs & Demographical Shopper Assistance:
Programs like the LEGO Group‘s LEGO Insiders, which combines personalized offers and exclusive product releases, show how AI can help retailers create targeted experiences that build customer loyalty.
The in-store QR codes, prompting customers to scan and sign-up for the LEGO Insiders program, are strategically placed throughout the floor plan to help drive engagement and store dwell time. The interactive customization leads to people browsing the store longer, which in turn gives them more opportunity to find items to purchase.
LEGO In-Store Display Featuring ‘Insiders’ Sign-Up QR Code & Customizable MiNIFIGURE Screen
Self-Service Applications & Convenience:
Consumers increasingly expect convenience, both online and offline. We saw an increased use of self-service applications to simplify the shopping process, allowing customers to shop at their own pace, while programs like LEGO’s MiNIFiGURE FACTORY offer fun, personalized experiences in-store.
The joy of self-designing your own unique LEGO figurine and then playing with it in the LEGO store play areas creates a lasting brand memory that’s bound to build customer loyalty.
LEGO MiNIFIGURES The Tier One Team Made of Co-Founders Cynthia Ward & Lyndon Neal
When it comes to retail and activation, what businesses should really be looking at is having a true omni-channel approach to how they deliver in the market space. And in 2025, we expect even more brands to harness AI’s full potential, driving efficiency while providing an enhanced, customized shopping experience for consumers.
Pop-Ups & Limited Engagements: Creating Social Moments
Another standout trend we noticed was a rise in retailers using pop-up shops and limited-time engagements to foster deeper connections, create urgency, and even partnering with other brands to elevate their visibility and relevance. While the idea itself is not necessarily new, the executions we saw brought something fresh to the trend, showing that these types of activations are not only still generating social media buzz but also drawing in even more new and existing customers.
For example, Godiva Chocolatier‘s pink “Share the Love” Pop-up Van at Rockefeller Center was a fantastic way to tap into the seasonal spirit while promoting a unique experience that could only be found in that moment. Visitors were lined up to take photos in front of the Godiva pink mini-truck, with the world-famous Rockefeller Christmas tree in the background, creating a link between the brand Godiva & fond holiday memories for all in attendance. This pop-up truck chocolate gift give-away was a social seasonal moment that created online buzz for the brand, and increased foot traffic to their local retail store in Rockefeller Center.
Godiva’s ‘Share The Love’ Pop-Up Truck near the Rockefeller Center Christmas Tree
We also saw surprising collaborations like the M&M’s x kate spade new york partnership, highlighting how co-branded efforts can create excitement, drive foot traffic, and build brand equity. Having a brand show up in unexpected places, such as Kate Spade designed purses co-branded with M&M’s iconography displayed in the M&M’s stores, opens the brand and product to an entirely new audience.
M&M’s x Kate Spade Co-Branding in Times Square M&M’s Store
Sampling, Giveaways, and Branded Social Moments: As always, samples and giveaways continue to be a powerful tool for building relationships with consumers. But after years of cautious economies, brands are looking to non-sale moments for generating social buzz and influence. This is becoming even more important during a time when consumers feel they are being over sold to in a less than favorable economy. Having experiences they can share on social media, without the pressure to “buy now”, builds a lasting experience and brand loyalty.
Messaging: The Power of Nostalgia
When it comes to messaging, there has been a noticeable shift towards simplicity and nostalgia. This year, many retailers leaned into a retro-inspired, feel-good approach that triggered personal, positive memories for consumers.
Nostalgic Campaigns:
The magic of Coca-Cola’s Times Square takeover evoked cherished memories, making us all feel more emotionally connected to their brand as we were reminded of simpler side of the holiday season.
Creative Operations Director, Kyle Falbee, Surrounded by Coca-Cola Times Square Takeover Messaging
Philanthropy and Community Engagement:
Retailers like Disney Store, who also designed well crafted nostalgic messaging (“DELIVERING HOLIDAY Magic” & “GIFT the Stories THEY LOVE”) went beyond selling products and used their messaging to educate consumers about their community and philanthropic efforts. QR codes on shelves with Disney’s stuffed characters provided information about the company’s long-standing support of Marine Toys for Tots Foundation, reminding customers that shopping there comes with a purpose.
‘GIFT the Stories THEY LOVE’ Messaging on Disney Store shelves
Disney Philanthropic Education QR Codes on Disney Store Shelves
Looking Ahead in 2025
As we settle into 2025, the convergence of AI, experiential marketing, and authentic storytelling will notably shape the future of retail. Consumers are craving deeper connections, personalized experiences, and brands that resonate with their values.
Retailers and Brands that can blend technology with nostalgia, provide seamless experiences, and create moments worth sharing will be the ones who lead the way.
What we gathered from our adventure was just a glimpse of what’s coming. There is a renaissance happening in retail right now and those Retailers who stay attuned to these trends will be better equipped to meet the evolving demands of today’s consumers.
