Issue #75: 2025 Wrapped

2025 Wrapped

Yesterday, I had the distinct pleasure of running in the Central Park Half Marathon. While the outcome was not exactly what I had hoped (IT Bands are annoying), the race and recovery definitely dug into my time writing this week. Alas, the show must go on, so I thought it would be fun to ask AI (h/t David Nebinski for the inspiration) about what the top 5 trends from “Retail is Not Dead?” were this year. I decided to ask ChatGPT, Perplexity, and Gemini to see the results. I wouldn’t say these are exactly the trends I would have picked, and I am surprised how different each one is, but this was a surprisingly fun exercise to do!

Before we dive in, if you have any trends you thought were pertinent in 2025, or things you are excited for in 2026, don’t hesitate to reply!

ChatGPT: Innovation, Consumer Behavior, and Infrastructure

1. Retail & AI Innovation
AI and tech are becoming central to retail’s evolution, with a particular focus on how startups and platforms leverage artificial intelligence to reshape operations and competitive advantage (e.g., maps/roundups of NYC’s retail AI ecosystem and tech-linked retail tools).

2. Consumer Behavior & Brand Loyalty
Understanding who shoppers are and what makes them loyal — especially Gen Z — is a recurring theme, with discussion on whether younger shoppers actually stick with brands and how companies build meaningful affinities.

3. Commerce Infrastructure & Checkout Innovation
There’s interest in how commerce tools are evolving, such as integrated checkout experiences (e.g., through major tech platforms), indicating a shift toward seamless purchasing flows that blur the line between discovery and transaction.

4. Retail Formats & Physical Expansion
Despite the “retail is dead” narrative, physical retail continues to innovate — from international brands entering new markets to experiential formats and growing specialty concepts — illustrating that in-person retail remains dynamic.

5. Capital Markets & Funding Dynamics
Several 2025 issues explore the intersection of retail/CPG and capital — including what metrics matter for VC funding and how IPOs play into brand growth — highlighting how investment flows influence retail strategies and brand trajectories.

Perplexity: In-Store Retail, Experiential Formats, & Capital

1. Shelf-ready brand building

A recurring theme is the “power of packaging” and how brands use design, format, and storytelling on pack to grab attention in crowded physical retail. These pieces emphasize packaging as a growth lever, not just decoration, tying it to trial, trade velocity, and eventual acquisition interest.​

2. Retail as an acquisition engine

Several 2025 issues highlight how strong in-store execution and retail fundamentals (velocity, merchandising, and unit economics) set brands up for strategic exits. The newsletter frames retail doors as proof points for acquirers, showing that disciplined brick-and-mortar performance can be as important as DTC metrics.​

3. Community, clubs, and membership

Content on NYC membership clubs and gathering spaces shows a shift from pure transactions to belonging-driven models. Retail is positioned as a social infrastructure layer, where access, events, and community perks become as central as the products themselves.​

4. Experimental formats and concepts

Issues covering concepts like CosMc’s and fast-food/fast-casual empires explore how chains test spin-offs, new formats, and menu or store innovations. The trend is toward using limited pilots and pop-ups to probe new demand pockets before scaling, accepting that some experiments will be short-lived.​

5. Food, fundraising, and capital flows

Coverage of food fundraising and capital deployment into CPG and restaurants highlights that investor interest remains strong but more selective. The trend emphasizes brands with clear retail strategies, operational discipline, and a path to profitability, rather than growth at any cost.​

Gemini: Retail Expansion, AI, and Numbers

1. The Pervasive Integration of Retail AI

Artificial intelligence moved from being a back-end tool to a direct part of the consumer experience, with companies like OpenAI launching integrated checkout features. This technology is creating an "AI Boom" in specific retail hubs, prompting an ecosystem of startups focused on retail solutions.

2. The Scrutiny of Gen Z Loyalty and Brand Affinity

A significant focus was placed on understanding the modern consumer, specifically Gen Z, and whether they exhibit traditional brand loyalty. Retailers and strategists are actively exploring the "art and science" required to successfully develop lasting brand affinities in a fragmented media and shopping landscape.

3. Aggressive International Retail Expansion into the US

The US market continued to see major incursions from global players. A key example is the Korean beauty and skincare retailer, Olive Young, whose entry signals intensifying competition for established players like Sephora and an influx of international trends.

4. Volatility and Strategy in Quick Service and CPG Food

The health of the quick-service restaurant (QSR) sector, particularly chains like Chipotle, Sweetgreen, and Cava, was a central topic, with analysis of their performance and menu strategies. Articles also delved into the complex logistics and supply chains that govern franchise food operations and emerging flavor trends.

5. Robust Holiday Spending and Investment Metrics

The 2025 Black Friday/Cyber Monday (BFCM) period was analyzed as a highly successful season, reflecting continued consumer resilience. Simultaneously, the financial focus for the sector remains on investment, with detailed breakdowns of the retail metrics that consumer packaged goods (CPG) brands must hit to secure venture capital (VC) funding and launch successful IPOs.

Target Opens New Concept In SoHo (NYC)

The past couple of weeks, I may have written about Target more times than I did all year due to the aggressive turnaround plan it has been undergoing. Most of that turnaround has been focused on improving back-end efficiencies and other core business initiatives. However, as a balance, Target is also trying to bring its brand back as a cool destination to shop. Located in SoHo, surrounded by many other “cool” fashion brands, this new store is really focused on the clothing side. The assortment is dominated by trendy apparel, but also has items that match that concept with beauty, home goods, and LTOs. I doubt this concept scales, instead, it seems they will use this location as a destination to test concepts before they build them within existing stores. For instance, they built a “Broadway Beauty Bar”, which wouldn’t surprise me if it were featured across the company based on the success in SoHo. Excited to see a focus on in-store experience, and maybe I will have to check it out in person!

KFC Decides To Expand Saucy Concept to Three More Units

Back in Issue #37, I highlighted the moves KFC was attempting to turn its business around. First, it hired a new President. Second, it launched a new concept Saucy, which focused on drinks and tenders. Back then, it was just one location, but now it has been announced that it will be spread to three more locations.

Here is what stood out to me:

• The next three locations will also be in the Orlando area

• These stores will open by mid-January

• 6 more stores will open in the near future

• Additional areas beyond Orlando in Florida and the Southeast are being scouted

• The menus will also be expanded

Still, I am not convinced that this concept will become the national staple that KFC is. Instead, it will serve as a testing ground before the national launches for items. Here is what the old CEO shared, which is telling to me:

McDonald’s attempted this strategy with CosMc’s, so it will be interesting to see if there is a point where the testing is enough, or if it sticks around in perpetuity.

• Summary: La La Land Kind Cafe is an all-day breakfast cafe. It features coffees, toasts, refreshers, and a space to hang out.

• My Take: Similar to Bluestone Lane in NYC, the all-day cafe is having a moment. It is a super competitive space, but there is definitely room for a national player. What interests me about La La Land is that it originated outside the northeast (Texas), unlike many of the other concepts in the space.

• Founder(s): Francois Reihani

• Funding: Unknown

• Number of Locations: 22 (Texas, LA, Nashville)

• Social Media Following: 6.2M on TikTok and 371K on Insta

Additional Links:

1. Walmart partners with Wing to launch drone delivery in Atlanta (read more here)

2. A deep dive into Cyber Monday from Shopify, one of the leading tech companies of that time period (read more here)

3. How can brands and retailers understand what makes them truly different? (read more here)

4. How is Walmart approaching AI? (read more here)

5. Coefficent Capital and The New Consumer surveyed over 3,000 customers to understand how consumers are looking at 2026 and beyond (read more here)

6. Lululemon CEO to step away in January (read more here)

7. L.L. Bean is on a store expansion tear (read more here)

8. The Fresh Market, a premium specialty grocery store, has opened new locations in Illinois and Kentucky (read more here)

9. 99 Ranch, an Asian grocery store, is opening a large food hall in its NYC store (read more here)

10. Chipotle opens its 4,000th store (read more here)

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