Here are the recent happenings in the Retail and Consumer Tech world as of Feb 25, 2025:
Generative AI Accelerates in Fashion Retail
The fashion industry is witnessing a significant shift as generative AI moves from hype to practical application. Following President Trump’s executive order in January, which removed barriers to American AI innovation, retailers are rapidly integrating AI to enhance competitiveness. Benjamin Fels, CEO of AI supply chain firm Pendulum, notes that this $500 billion investment could help U.S. retailers compete with foreign e-commerce giants by enabling faster supply chains and predictive analytics. Brands like Victoria’s Secret have transformed their marketing strategies using AI personalization, moving from uniform daily emails to tailored content based on individual preferences. This shift has led to increased customer engagement and operational efficiency.
Consumer Sentiment Declines Amid Inflation Concerns
Recent data indicates a decline in consumer sentiment, influenced by fears that new tariffs may fuel inflation. The University of Michigan’s consumer survey reports a significant drop in buying conditions for durable goods, partly due to concerns over imminent price increases from tariffs. Joanne Hsu, director of the survey, states, “Consumers’ expectations for the path of inflation worsened considerably this month—they are clearly bracing for a resurgence in inflation.”
Constellation Brands Invests in Non-Alcoholic Beverage Sector
In response to shifting consumer preferences, Constellation Brands has acquired a minority stake in Hiyo, an organic non-alcoholic beverage brand. Hiyo offers drinks infused with adaptogens, nootropics, and botanicals, and is currently available in over 3,000 locations, including major retailers like Whole Foods Market and Sprouts Farmers Market. This investment aligns with Constellation’s strategy to focus on premium products and cater to the growing demand for non-alcoholic alternatives.
European ‘Buy Now, Pay Later’ Market Projected to Grow
The European ‘Buy Now, Pay Later’ (BNPL) market is expected to grow by 12.4% annually, reaching $191.3 billion in 2025. This growth is driven by high e-commerce penetration and increasing demand for flexible credit solutions. Key players like Klarna and PayPal dominate the market, with opportunities emerging in sustainability, travel, and omnichannel retailing sectors.
Consumers Favor Positive Brand Content
A recent study by Upworthy and Alter Agents reveals that 86% of consumers are more likely to purchase from brands that make them feel positive. The study emphasizes that uplifting and authentic messaging can enhance brand connection and drive purchase behavior. Max Schorr, CEO of Upworthy, remarks, “Telling stories of a better world helps create one.”
Retailers Adapting to Technological Advancements
The retail landscape continues to evolve with technological integration. Retailers are increasingly using AI to turn customer behavior, preferences, and purchase history into actionable insights that enhance operations, personalize marketing, and optimize inventory decisions. This trend is particularly crucial for targeting Gen Z shoppers, who adopt new fashion trends faster than older consumers.
Brought to you in collaboration by the teams at EVOA Digital, CPG Cloud Partners, and Red Stapler. This article was initiated using AI technology provided by Apple and OpenAI.
