NRF 2025 underscored these trends, showcasing actionable insights and transformative strategies from brands like Foot Locker, Bath & Body Works, Nestlé, Heineken, L’Oréal and more.
The lesson? Technology is no longer a supporting actor. It’s the driver of innovation and scalability.
For brands, the challenge is twofold: Leverage these advancements for differentiation, and ensure they translate into tangible business outcomes.
From AI prototypes to operational scale
The rise of autonomous intelligence
AI agents are the driving force behind 2025’s retail transformation. What began as proof-of-concept initiatives have now matured into scalable systems that optimize customer interactions, streamline operations and create predictive insights.
At NRF, Foot Locker’s FLX Loyalty program demonstrated the power of AI in delivering hyper-personalized experiences. By using AI agents to analyze shopping behaviors, the program can dynamically offer curated rewards and exclusive event invitations, fostering deeper engagement.
Similarly, Bath & Body Works leveraged AI and augmented reality at scale, utilizing predictive modeling to deliver personalized product recommendations and dynamic promotions. They also used AR to enhance the sensory experience of their fragrances in-store, seamlessly bridging the gap between digital and physical retail experiences.
Quantifiable business outcomes with AI
The integration of AI-powered technologies into retail and supply chain operations is driving measurable business value across industries:
- Conversational AI agents are revolutionizing personalized customer support at scale. Bath & Body Works, led by Chief Digital and Technology Officer, introduced their Generative AI tools, delivering predictive recommendations and dynamic promotions. This innovation enhances customer engagement and loyalty through seamless, personalized interactions.
- Digital twins, as seen in applications by Nvidia and retailers like Lowe’s, are revolutionizing operational efficiency. By simulating supply chain processes and in-store layouts, businesses can test improvements without operational risks. Lowe's digital twin stores have resulted in enhanced inventory accuracy and reduced waste, underscoring the potential of predictive analytics in logistics optimization.
- Generative AI is unlocking new efficiencies. Nestlé's use of AI-powered tools like the Brand Assistant enables consistent messaging at scale, streamlining operations for faster campaign execution.
These examples illustrate how technology partnerships, like Nvidia’s Omniverse platform or Google Cloud AI-powered Solutions are not just future-proofing businesses but also generate immediate cost savings and customer experience enhancements.
The return of the app ecosystem
Centralizing customer engagement
In 2025, apps are reclaiming their role as the central hub of customer engagement.
Once seen as transactional tools, apps are now critical for delivering integrated experiences across the customer journey. Foot Locker exemplified this shift with their mobile app, which seamlessly connects product discovery, real-time inventory updates and loyalty features. This app-centric strategy addresses one of retail’s persistent pain points: frictionless fulfillment.
Bath & Body Works demonstrated how app ecosystems enhance customer engagement and loyalty. Recent updates to their app include login improvements, enhanced accessibility for non-registered users and a streamlined store locator feature. These updates are part of a broader strategy to align their award-winning loyalty program with personalized, seamless shopping experiences.
While the app's loyalty members account for over 80% of U.S. sales, Bath & Body Works continues to innovate by integrating technology to deepen customer connections and improve the shopping journey. For example, augmented reality features to express and showcase fragrances in store via the app let consumers interact with their product both in the physical and digital space.
These developments underscore how investing in app ecosystems can help retailers drive omnichannel growth while fostering stronger emotional connections with customers.
Generative AI: A game-changer for apps
Generative AI further elevates app ecosystems by creating anticipatory experiences. For example, apps powered by generative AI can predict customer needs based on behavioral patterns, offering personalized upselling opportunities or tailored content. L’Oréal’s virtual try-on app exemplifies this, using AI to create immersive shopping experiences that can increase conversion rates up to 35%.
