What will 2025 bring? Primark, Tesco, Amazon, Sephora and H&M bosses predict the year ahead

Paul Marchant, chief executive, Primark 

“In 2024, we marked 50 years of Primark on the high street in Great Britain. As we look ahead to 2025, we still very much believe that thriving high streets and town centres are vital for the success of the retail industry overall. As retailers it’s our responsibility to keep challenging ourselves to evolve and invest in the in-store experience, to bring customers through our doors and give them a reason to visit their local high street. One of our highlights this year was expanding our click-and-collect service across England, Scotland and Wales; a great example of how digital can complement physical retail. Outside of the UK, 2024 was another strong year for Primark, as we reached the milestone of 450 stores across Europe and the US, including our entry into Hungary, our 17th international market.  

“Looking ahead, when it comes to product, quality and value will remain top of mind for consumers. We’re determined to challenge the perception that quality always comes with a higher price tag, and we’re setting new durability standards to ensure we continue to offer great quality products at the best value on the high street. 

“There is no doubt that the retail industry faces ongoing challenges, from rising business costs to unpredictable trading environments. Households are still under financial pressure, and external factors like the weather can have a significant impact. But retail is a resilient industry, and its ability to adapt quickly has always been one of its greatest strengths. At Primark, we’re confident we can navigate these challenges while staying true to what we do best, delivering great fashion, fantastic value and a shopping experience that keeps people coming back.” 

Matthew Barnes, chief executive, Tesco UK and Ireland

“Innovation has always played a huge role at Tesco and it will continue to help us serve our customers, colleagues and communities in the year ahead – whether that’s through exciting new product launches, community initiatives or market-leading deals. 

“Just as important as innovation will be our unrelenting focus on great everyday value for our customers. We know many of our customers continue to work on a tight budget – and we’re listening to them by making sure we remain the cheapest full-line grocer. 

“Our colleagues are our greatest asset and I’ve been proud of our record investment in pay, improved parental and wellbeing offerings, and record colleague satisfaction scores over the past year. We’ll continue to put our colleagues front and centre as we head into 2025. 

“Tesco Finest will play a central role in helping our customers make the everyday that little more special. It had a fantastic 2024 with record sales as customers recognised our investment in quality, price and innovation. We’ll be carrying that momentum into 2025. 

“And last but not least, 2025 will mark a very special birthday for Tesco Clubcard, which will celebrate 30 years of helping our customers earn fantastic rewards and save money on their shopping.”

Henrietta Rix, co-founder, Rixo

“Consumers today are more aware than ever, and in 2025, I expect we’ll see an even greater demand for brands to operate transparently and sustainably. At Rixo, we are committed to making responsible choices in materials, production and packaging. I believe that by focusing on sustainability, brands will not only meet customer expectations but also drive long-term loyalty and growth.

“In a world where consumers have endless options, brands that provide a personalised experience will stand out. I believe next year we’ll see a deeper commitment across the industry to curating tailored shopping experiences – whether that’s through AI-driven recommendations online or unique in-store experiences that let customers interact directly with products and the brand story and founders. 

“As online and in-person shopping experiences continue to blend, it’s essential for brands to deliver a seamless and cohesive experience across all touchpoints. Consumers want flexibility, whether that’s browsing online before purchasing in-store, or receiving online orders with the same care and service they would expect face-to-face. 

“The popularity of second-hand, rental and circular fashion is undeniable, and I see this trend only growing in 2025. Consumers are increasingly open to renting or purchasing pre-loved items as they seek to make more sustainable fashion choices.

“Today’s customers want to see themselves represented in the brands they love. This coming year, I foresee even greater emphasis on inclusivity and diversity in product ranges, with more brands expanding sizing, designing with a wider audience in mind, and representing a broader spectrum of people in their marketing.”

Dee Corsi, chief executive, New West End Company

“As we look ahead to 2025, the outlook for the West End is positive. We’re expecting a strong festive trading period, with spending projected to rise by 3.2% year on year to £1.7bn – driven by an increase in domestic and, particularly, international visitors.

“The continued evolution of the West End is evident not only in rising visitor numbers but also in the ongoing investment in the district, with the likes of TK Maxx and House of CB having recently introduced stores on Oxford Street. Equally, in luxury retail, we have seen new openings from households Rolex, Van Cleef and Arpels, Jacquemus – to name a few. These, coupled with an increasing number of experiential and leisure destinations like Future Stores and Moco Museum, are a testament to the importance of physical, flagship locations. We expect to see much more of this across the high street with the additions of Ikea and Abercrombie & Fitch’s flagship in 2025.    

“However, businesses in the district still face considerable challenges, with the financial burden of business rates creating additional pressures for many. To mitigate this, reintroducing tax-free shopping as part of a broader tourism strategy would drive substantial spending across the UK and support both new and established businesses in the West End. Equally, reforming the rigid planning system for something more flexible would encourage more inward and outside investment, helping to sustain the sector’s growth and offset the pressure of operating costs”. 

Maria Hollins, chief executive, Ann Summers

“2025 is set to be a challenging year for both consumers and retailers, with the increased taxation announced in the Budget. I think we can expect to see price increases across the board, which could reverse the recent slowdown in inflation and put additional pressure on discretionary spending. 

“Being front of mind for that discretionary spend remains our focus at Ann Summers; delivering incredible quality product at great value, creating eye-catching campaigns that keep us front-of-mind, and harnessing the emotive connection that we know our customers want.” 

Robbie Feather, chief executive, The Very Group

“Whilst we’re seeing an increase in consumer confidence, there are still economic uncertainties at play. Consumers will retain a level of caution when it comes to spending, while also looking for ways to spread the cost. The imminent consultation around buy now, pay later (BNPL) schemes is therefore timely and will impact how retailers embrace things such as BNPL products. Our Very Pay proposition, which offers customers flexible ways to pay, has always been regulated by the FCA so we welcome greater control of the industry.

“Looking more broadly at retail, we’re expecting to see some of the bigger names consolidating their position in the market, but it’s likely that we’ll also see more overseas players entering the fray. So, whilst we expect there will be growth in the market, and in particular online, it will remain competitive, and retailers will need to work hard to distinguish themselves in the eyes of their customers. For us, this means continuing to deliver across our pillars of ease, choice and understanding, supported by innovative ways of using technology and data. 

“To this point, the use of artificial intelligence is expected to be a big focus in 2025. Whether that’s to improve the customer journey, enhance data capabilities, or streamline processes, AI will play an important role for many online retailers in the coming year. Of course, it has to be used in the right way to be effective, and not tech for the sake of tech. We have used AI to great effect across our own customer journey and are excited to see where else we can take this.”  

Ralph Tucker, chief executive, The Cotswold Co

“While we can expect to see some continued macro volatility both internationally and some domestically, I am hugely optimistic about the year ahead for The Cotswold Company. I believe we – along with other purpose-led retailers and brands – can and will step up to take even more responsibility for the world around us (both the people and the planet) and harness exciting new opportunities to adapt to our customers’ evolving needs.

“Accounting for and anticipating a level of continued global volatility is going to be crucial for our sector in 2025. For example, post the recent election we might see a more protectionist environment in the US, and this could be replicated in other countries. This level of uncertainty, as well as the impact of ongoing conflicts around the world, does filter through to consumer sentiment in the UK.  

“Against this dynamic backdrop, I believe it will be a year where adaptable, profitable, strong brands are able to ‘pull away’. So, we will be doubling down on our focus on flexibility, prudent investment and further strengthening our brand values and connection with both colleagues and customers. 

“Another key area of focus is of course going to be AI. In 2025, I’m anticipating a move away from efficiency ‘toys’ to practical EBITDA-enhancing uses in areas such as marketing investment and modelling, forecasting, and personalisation. A very exciting, practical step forward for retailers who harness it effectively. AI’s capabilities have grown immensely over 2024, so the possibilities for 2025 are exciting.

“In 2025, I also think we will see a settling of the dust surrounding the discourse on hybrid working. Whichever work/life balance suits a company’s culture will be resolved and businesses will treat colleagues as adults rather than dictating this or that to them. 

“I expect to see some much-needed investment in under-funded services, and for those worse off to be positively impacted by this. Whilst there will be cost pressures in the sector from the changes to National Insurance, I’m hoping for a more stable operating environment than we’ve seen over recent years. This will help strong, relevant brands like ours to further grow and succeed. I’m hoping for a dose of much-needed optimism over the next few years! 

“Finally, I expect the continuing, evolving realisation of the environmental changes to our planet to persist. We enter 2025 aware of the ongoing and impending changes happening, along with our responsibilities as businesses. Consumers will increasingly look for brands with strong sustainability commitments and hopefully, businesses will accelerate practical, near-term actions rather than just making far-off promises.”

Kirsty Glenne, managing director, Antler

“Given the economic climate at the moment, I think the biggest trend in 2025 will be the quality-to-value ratio. Every penny people part with will feel like an investment. Buying smart into trusted brands that are considered a quality purchase but not quite at the eyewatering price tags of luxury will be key. As a result, we think quiet luxury is also here to stay. Buying for longevity via muted colours and minimalism versus overly seasonal or extreme colour pops.

“Next year will see the term new normal replaced with back to normal as many are called back to the office five days a week. We anticipate a surge in commuting and the hero of this trend will be the all-purpose lifestyle backpack that can take everything from your sneakers and gym kit to your laptop, water bottle and homemade lunch.
 
“Business travel will return. I hope businesses have learned by now how much can be achieved remotely and business travel will remain at a minimum for the sake of sustainability, however, those that do travel will make the most of it – tagging on days of annual leave or maximising the weekend straight from the office. People will look for efficiency and convenience as they become more active, but with a hybrid mindset to find work-life balance but in a different way from the WFH trend they have become accustomed to.”

David Wood, chief executive, Wickes

“Energy costs remain a key concern for our customers, especially in a country like ours with some of the oldest and least energy-efficient housing stock in Europe. More and more, we’re seeing people turn to energy-saving solutions to make their homes cheaper and greener to run. From quick wins like energy-efficient lighting and loft insulation to larger projects like solar panel installations. People are searching for both immediate savings and long-term benefits. 
 
“We expect this trend to keep growing as more consumers embrace renewable energy as a means of making their homes more energy efficient in the long term, whilst also doing their bit for the planet.” 

Anja Madsen, chief operating officer retail, Pets at Home 

“Looking to 2025, value will be front of mind for the consumer. After a longer period of feeling squeezed, customers across all income levels are going to be making every penny go that bit further. Especially in the first quarter, people will be looking for prices they can trust, enticing offers and feel-good winter pick-me-ups; but those that feel affordable. This is where we think the value of our own brands that offer amazing quality at low prices will really come into their own. 
 
“Where there’s a closer look at value, customer service, which sprinkles extra magic at the shops will set brands apart. We’ve been finding this consistently through 2024, and empowering our exceptional colleagues to give customers more time, care and personal attention has been working really well. It turns a trip to the shops into an experience and our customers feel they’re giving love and care to their pets. Our colleagues are helping with everything from bespoke nutrition advice, putting on free workshops for kids over school holidays, fitting new harnesses so pets are comfy, all the way to guiding new puppy and kitten owners through the first shop with their new family member. Experiential shopping and interacting with experts is here to stay.

“Finally, as health and wellbeing continues to be something that consumers are interested in, we expect this to carry through to the pet market. This includes recent trends in demand for tips and products that help the mental and physical welfare of animals to continue through areas like calming products, pet health treatments and supplements. People want to make sure they’re doing everything they can to keep their pets healthy but also happy.”

John Boumphrey, country manager, Amazon UK

“2025 will continue to see shifts in retail, driven by technology and AI. Though, in retail, more stays the same than changes. Customers will continue to want the same things they have always wanted, a wide selection of products at low prices with a range of convenient delivery or pick-up options.

“AI is revolutionising online shopping by providing personalised recommendations and streamlining the purchasing process, and we see customers increasingly using AI (such as our own Rufus assistant) as a personal shopper. Customers will remain value-conscious, and we expect them to continue to delay big-ticket purchases to deal events. Sustainability will remain top of mind for many consumers, with customers feeling increasingly confident in considering and buying pre-loved or refurbished items. People will increasingly base their choice of retailer on factors like what type of packaging they’re using, whether it’s being delivered via low-emissions transport (electric vehicles, electric cargo bikes or walkers), and whether those retailers can offer more sustainable product choices. Delivery speeds will get even faster. Next-day is becoming standard and same day an increasing option for many. This trend will continue in 2025.” 

John Roberts, founder and CEO of AO

“I’m an eternal optimist but there’s no avoiding the fact that in 2025, the Budget will cause inflation to rise along with unemployment. Yet customers will rightly continue to expect amazing service and amazing prices from retailers. Only the fittest will survive.” 

Anthony Houghton, chief executive, Holland & Barrett

“As we step into 2025, I’m cautiously optimistic about the retail landscape after a tough few years for consumers. I think the year will be defined by those who are meeting evolving customer expectations with purpose and authenticity. Here are my top three predictions: 

“The aging population obviously isn’t new news, but what’s changing is how people are approaching aging. On average, we spend 16 years living in poor health. Gen Z, however, is embracing preventative health early, reshaping consumer behaviour and shopping habits. We’ll see a sharper focus on proactive wellness, and solutions for living better for longer. 

“2025 will push retail own brand ranges beyond repetition. Foods with added benefits are booming, and one standout is functional tea, which is gaining traction as a caffeine-free, luxury alternative to coffee, particularly among Millennials and Gen Z.

“With the cost of living crisis lingering, value remains critical, but it’s about more than just low prices. Customers want experiences, convenience, quality and personalisation.”

Henrik Nordvall, chief executive UK and Ireland, H&M

“Building on the success of our latest collections, we will go into 2025 with a continued focus on strengthening our brand, customer offerings and overall shopping experience. Each region and market that we operate in differs hugely with customers facing unique challenges and different perspectives, we have the opportunity to tailor our strategies to best meet these. Here in the UK, we are acutely aware of the impact of the ongoing cost of living crisis on our customers. We firmly believe in our business idea of fashion and quality at the best price in a sustainable way and that enables us to continue to perform for our customers. Next year, we will continue to work with key industry stakeholders to address business rates and other policy issues, as well as the rising violence against retail workers that affects the retail industry as a whole. 

“We are continuously evaluating and developing our business to meet customer needs and offer the best shopping experience, whether in-store or online. Our omnichannel approach caters to the needs of a more immediate generation and online and physical stores are now increasingly intertwined. We are seeing customers wanting to shop with brands that align with their own values. We have a responsibility to show customers what we stand for as a business and build authentic relationships, that enable them to truly experience our brand beyond our products. The role of physical retail is also changing – it is moving away from convenience, function and transaction to a place where customers can explore, discover and be inspired, and our 2025 stores strategy will be showing this in abundance.” 

Sarah Boyd, managing director, Sephora

“My prediction for retail is that expectations will continue to grow around experience. Customers no longer want stores that just sell them things, but stores that provide experiences and events in the form of eventing, services and introductions to new brands and diverse hot products from around the world that they have come across on social media and that they have asked us for.”

Matt Hood, managing director, Co-op Food

“I have no doubt that 2025 will absolutely deliver the continued growth of quick commerce as consumers see, and feel, the benefit of this true convenience service in their busy lives. As the market leader in this space and the biggest grocer on all apps, we predict people’s use of these apps will still grow and the work being done to reduce the premiums in this space will only further accelerate this.

“It sounds obvious, but value, in its broadest sense, will remain a key focus. By this I mean not just price but where customers can find the best total value, combining price promotion and the best quality. As it stands, 2025 may yet still see another increase in inflation, which along with new legislation that retailers have to work through, means a greater focus on total value will be vital.

“I am passionate about supporting British; it’s something we have done for many years and will continue to do. As the UK farming community rightly becomes more vocal around their concerns on the sustainability of British agriculture, I believe we will see a surge of support from consumers too, as they become more aware of just how important British farming is, whilst also appreciating sourcing British is also a good indicator of quality.”