Industry Outlook: Retail Sector Faces Ongoing Rapid Shifts in 2nd Half of 2025

U.S. retailers are expected to invest heavily in tools that seamlessly blend online and offline experiences.
Industry Outlook: Retail Sector Faces Ongoing Rapid Shifts in 2nd Half of 2025
A Best Buy store in Levittown, N.Y., on Sept. 15, 2022. Bruce Bennett/Getty Images
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News Analysis

The first half of 2025 was a challenging period for U.S. retailers, marked by widespread consumer pessimism and intensifying competition fueled by the growing convergence of online and offline experiences. While consumer sentiment improved in June, experts anticipate that retailers will continue to face a rapidly evolving environment in the second half, driven by shifting consumer buying patterns and the acceleration of omnichannel marketing.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”