Retailers Focus on In-Store Experiences as Black Friday Online Sales Slow in 2025 – Monday, December 1, 2025

Retailers are shifting their focus toward AI-driven solutions and enhancing in-store perks as online order growth showed signs of slowing during Black Friday 2025. This strategic pivot highlights a renewed emphasis on elevating the physical shopping experience to attract consumers back to brick-and-mortar locations.

Who should care: VPs of retail, store operations leaders, eCommerce directors, customer experience teams, and retail technology decision-makers.

What happened?

During Black Friday 2025, retailers demonstrated a clear shift in strategy by increasing investments in AI technologies and in-store incentives to address the softening growth of online orders. Traditionally dominated by eCommerce, this year’s sales event saw major department stores and specialty chains doubling down on enhancing their physical store environments. Retailers integrated AI-driven tools such as personalized shopping assistants, real-time inventory management, and dynamic pricing to create a more engaging and efficient shopping experience. These technologies enable staff to better assist customers and help shoppers find products quickly, improving satisfaction and reducing friction. Alongside technological enhancements, retailers emphasized exclusive in-store discounts, personalized promotions, and experiential events designed to draw foot traffic and encourage longer visits. This approach represents a strategic effort to balance the convenience and reach of online shopping with the tangible benefits and social engagement of in-store experiences. By doing so, retailers aim to recapture consumer interest and drive sales amid evolving shopping behaviors that favor hybrid retail models.

Why now?

This shift comes at a time when online shopping growth appears to be plateauing after a sustained surge during the pandemic. Over the past 18 months, consumers have shown signs of digital fatigue, increasingly valuing the tactile, social, and immersive aspects of physical retail. The pandemic-driven eCommerce boom has stabilized, prompting retailers to reassess their strategies to maintain competitiveness. By investing in AI and enhancing in-store experiences, retailers are responding to these changing consumer preferences and positioning themselves to capture a larger share of the market as shopping habits continue to evolve toward a blend of digital and physical channels.

So what?

The implications for the retail industry are substantial. Retailers must now strike a careful balance between digital innovation and enriching the in-store experience to meet rising consumer expectations. The growing emphasis on AI and in-store perks signals a strategic pivot toward more personalized, seamless, and engaging shopping journeys. This shift is likely to drive increased investments in retail technology, staff training, and store redesigns to support new tools and customer service models. Retailers that successfully integrate these elements stand to benefit from stronger customer loyalty, higher conversion rates, and increased sales. Conversely, those that fail to adapt risk losing relevance as consumer preferences continue to evolve.

What this means for you:

• For VPs of retail: Prioritize budget allocations toward AI technologies that enhance the in-store customer experience and operational efficiency.
• For store operations leaders: Invest in training staff to effectively use AI tools and deliver personalized, high-touch customer service.
• For eCommerce directors: Develop hybrid strategies that seamlessly integrate online and in-store shopping experiences to maximize customer engagement.

Quick Hits

• Impact / Risk: Retailers risk losing market share if they do not adapt to the shifting balance between online and in-store shopping preferences.
• Operational Implication: A stronger focus on AI and in-store perks will require retraining staff and potentially redesigning store layouts to accommodate new technologies.
• Action This Week: Review current in-store technologies and identify opportunities for AI integration; brief executive teams on the benefits of enhanced in-store experiences.