September 29, 2025

The Latest Retail News that Matters the Most: 2025 Edition

Medha Mehta
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Stay ahead with 2025’s biggest retail news. AI, bankruptcies, tariffs, sales trends & more. Quick insights on what’s shaping retail this year.

Retail in 2025 is serving more plot twists than a Netflix drama. One week it’s store bankruptcies, the next it’s AI chatbots styling your holiday party outfit. Tariffs, layoffs, robots, and surprise comebacks, this year, the checkout line isn’t the only thing moving fast. Here is the latest retail news that you must be aware of. 

Fresh Retail News that is Shaping the World Around You

Let’s explore the recent news from the retail industry. 

Retail Holiday Hiring in 2025 Drops to Lowest Level Since 2009

News date: September 2025
Details
: U.S. retailers are projected to hire fewer than 500,000 seasonal workers in Q4 2025, marking the weakest holiday hiring since the 2009 recession.

  • The drop is driven by inflation, tariffs, and firms leaning more on automation than extra staff.

  • This trend reflects broader labor-market softness, as hiring has already slowed dramatically in recent months. 

Read more: CBS News

Retail Adopts AI-Enhanced Bodycams to Curb Theft and Improve Ops

News date: September 2025
Details: Retailers are testing light, AI-powered body cameras (e.g. Axon’s device) tailored for stores, offering video capture, analytics, translation, and even inventory/queue assistance.

  • These cams double as de-escalation tools and data sources for training or operations.

  • The move reflects growing urgency among retailers to fuse safety and efficiency via AI.

Read more: Business Insider 

Amazon to Close 19 UK Grocery Stores

News date: September 2025
Details: Amazon will shut down 19 of its UK “till-free” Amazon Fresh grocery stores, less than five years after launch.

  • Five stores may be converted into Whole Foods outlets as Amazon shifts focus to online grocery delivery with partners like Morrisons, Co-op, Iceland, and Gopuff.

  • About 250 staff are affected, with the company offering consultations and potential redeployment.

Read more: BBC News

Retail News: Starbucks to Cut 900 Non-Retail Jobs and Close Stores

News date: September 2025
Details: Starbucks plans to eliminate around 900 U.S. corporate (non-retail) positions and shutter hundreds of stores under its “Back to Starbucks” restructuring.

  • The cuts focus on support functions and underperforming locations deemed unsustainable or unable to deliver the expected customer experience.

  • The company estimates a roughly 1 % drop in its North American store count for fiscal 2025, and aims to reassign affected employees where possible.

Read more: Daily Coffee News

Philadelphia Lags in Retail Rent Growth

News date: September 2025
Details: In Q3 2025, Philadelphia ranked 13th among the top 15 U.S. retail markets for asking‐rent growth, trailing better-performing metros.

  • Analysts cite outdated inventory and weak population growth as key factors behind the underperformance.

  • The local retail market is struggling to keep pace with national trends in rent appreciation.

Read more: CoStar

Retailers Hit by Tariff-Driven “Stock Shock,” GreyOrange Study Finds

News date: September 2025
Details: According to GreyOrange’s research, about 76 % of store managers report more frequent stockouts, and nearly 59 % say replenishing inventory has grown harder.

  • Some 51 % of stores have cut staff over the past six months as tariffs and supply disruptions squeeze operations.

  • Retailers warn that inventory systems often misreport availability—leading to missing stock on shelves despite system claims.

Read more: Supply & Demand Chain Executive

Low Inventory & Return Fraud Threaten Holiday 2025 Retail Sales

News date: September 2025
Details: ReturnPro (formerly goTRG) warns retailers that 57% expect low stock to hamper sales, while 75% anticipate a surge in return fraud during the holiday season. 

  • Fraud schemes are expected to include returns of shoplifted items, used-but-non-defective goods, and abuse of tender policies.

  • In response, some retailers are pushing delayed promotions, tightening return policies, and testing new fraud-control tools to protect margins.

Read more: Supply & Demand Chain Executive

Microsoft & Revolve Launch AI-Driven Fashion Discovery in Copilot

News date: September 2025
Details: Microsoft and Revolve have teamed up to integrate Curated for You, a lifestyle commerce AI, into Microsoft Copilot, enabling users to explore fashion through conversational prompts like “What should I wear to a holiday party?”

  • The platform delivers personalized, visually rich outfit suggestions from retailers such as Steve Madden, Rent the Runway, Lulus, and more, reducing the distance between inspiration and purchase.

  • For retailers, this opens a new channel to reach consumers at the moment of style intent, potentially boosting engagement and conversion rates.

Read more: Retail Customer Experience

Etsy Adds AI-Driven Tools to Boost Seller Productivity

News date: September 2025
Details: Etsy has rolled out a new suite of optional AI tools designed to make it easier for sellers to manage their shops. These include a “listing title” tool offering search-friendly title suggestions, bulk editing options, and real-time feedback on changes. It’s also expanding features for handling messaging, shipping alerts, and renewal prompts to streamline workflows in its seller dashboard.

Read more: Retail Dive

Chain Store Bankruptcies Leave Vacant Malls and Opportunity for Small Retailers

News date: September 2025
Details: As more national chains file for bankruptcy, mall vacancy rates are climbing sharply, forcing landlords to slash rents and offer flexible leases.

  • The drop in demand from big retail brands is opening doors for local small businesses to move into prime retail spaces at reduced costs.

  • However, many malls are now in a scramble to reimagine their layouts, mix of tenants, and overall strategies to stay viable.

Read more: CNBC

Drive-Thru Coffee Purchases Hit All-Time High

News date: September 2025
Details: A new report from the U.S. National Coffee Association shows that 59% of coffee consumers now pick up their drinks via drive-thru, up from 55% last year, reflecting continuing consumer preference for speed and convenience.

  • The trend is fueling expansion of drive-through only café formats, often with minimal or no indoor seating.

  • Chains like Scooter’s and Dutch Bros are aggressively scaling to capture this demand.

Read more: PYMNTS

Mexico’s Retail Market Set to Grow to $693B by 2033

News date: September 2025
Details: According to IMARC Group, Mexico’s retail sector was valued at USD 454.5 billion in 2024 and is projected to grow at a 4.56% CAGR, reaching USD 693.0 billion by 2033.

  • Growth will be driven by urbanization, e-commerce penetration, omnichannel retailing, and rising consumer incomes.

  • Retailers that can blend physical and digital strategies will be best positioned to capitalize on the expansion.

Read more: OpenPR / IMARC Group

Claire’s UK & Ireland Rescue Deal Could Save 1,000 Jobs

News date: September 2025
Details: Private equity firm Modella Capital has acquired 156 Claire’s stores in the UK and Ireland from administration, preserving about 1,000 jobs, though 145 stores remain at risk.

  • The deal includes licensing rights for the Claire’s brand in the region, with Modella planning negotiations with landlords to determine which stores remain open.

  • The rescue comes after Claire’s U.S. parent filed for bankruptcy, with the U.K./Ireland retail operations collapsing under pressure from competition, costs, and changing consumer trends.

Read more: The Guardian

UK Retail Workers Report Surge in Violence on the Job

News date: September 2025
Details: Over 25 % of retail employees in the UK say they’ve experienced physical aggression or violence in their current role, and more than 20 % in London face angry customers daily.

  • Retail crime is costing firms billions, £4.2 billion in losses across shoplifting and prevention efforts last year.

  • Workers increasingly report stress, anxiety, and fear, pushing calls for stronger legal protections.

Read more: FashionNetwork

Amazon Deploys Robots to Power Holiday Order Fulfillment

News date: September 2025
Details: Amazon is intensifying use of robotics in its fulfillment centers to meet holiday demand, with robots handling item transfers, lifting tasks, and logistics flow.

  • The Shreveport facility, spanning over 3 million sq ft, uses nearly 1,000 robots to assist 24/7 operations.

  • While some roles may be displaced, Amazon says the shift is creating new opportunities in robotics maintenance, operation, and oversight.

Read more: CBS News

Retail: 174-Year-Old Chain Rescued from Chapter 11 Bankruptcy

News date: September 2025
Details: A century-plus legacy retailer, founded in 1818 and known as America’s oldest men’s clothier, has been acquired by a private buyer in its Chapter 11 proceedings, saving it from full liquidation.

  • The rescue deal transfers most of its debts and operations to the new owner, aiming to preserve brand continuity.

  • It remains to be seen how many physical locations will reopen and how much of the workforce will be retained.

Read more: TheStreet

GLP-1 Boom Threatens $5B in U.S. Apparel Inventory

News date: September 2025
Details: A surge in GLP-1 drug usage is driving a nationwide shift in body size curves, putting approximately $5 billion worth of U.S. apparel retail inventory at risk as demand for current size ranges may decline.

  • As consumers lose weight more rapidly and broadly, many existing clothing lines, sized for “traditional” body shapes, may see excess stock.

  • Retailers and brands may need to rethink sizing strategies, inventory allocations, and product assortments to adapt.

Read more: Yahoo Finance

Retail Sales Rise 0.6% in U.S. in August Despite Tariff Pressures

News date: September 16, 2025
Details: U.S. retail sales increased 0.6% month-on-month in August, driven largely by back-to-school spending.

  • Core retail (excluding auto & gas) rose 0.7%, suggesting resilient demand beyond essential categories.

  • Rising import costs and tariffs are starting to pinch margins, but consumers have remained relatively unfazed so far.

Read more: Reuters

Canadian Retail / North America: Over 2,600 U.S. Stores Set to Close in 2025

News date: September 2025
Details: More than 2,600 retail store closures are expected across the U.S in 2025, marking a wave of downsizing among established chains.

  • Major chains like Big Lots, Joann Fabrics, Dollar Tree, Walgreens, and Party City are among those shuttering locations.

  • This trend reflects shifting consumer behavior, rising costs, and overcapacity in physical retail space.

 Read more: Business Insider 

Australia: Fashion Retailer Desordre Enters Liquidation Owing $2.4M

News date: September 2025
Details: Australian boutique retailer Desordre has gone into liquidation, owing roughly AUD 2.4 million to creditors, including high-end labels.

  • The brand operated multiple stores across Sydney, Melbourne, and Brisbane, as well as an online presence.

  • Its downfall underscores mounting pressure on niche fashion retailers struggling with competition, cost escalation, and tighter margins.

 Read more: News.com.au

Walmart Bets on “Super Agents” to Drive Retail and E-commerce Growth

 News date: July 2025
Details: Walmart is launching AI “super agents” across functions: for customers, associates, sellers, and developers.

  • These agents will consolidate and replace existing AI tools, offering conversational access to tasks like product suggestion, order management, and logistics.

  • The company expects AI to become central to its growth strategy, aiming for 50 % of sales to shift online within the next five years.

Read more:  Reuters

Australian Retail Turnover Climbs 1.2% in June

News date: July 2025
Details: Retail sales in Australia rose 1.2% (seasonally adjusted) in June, signaling ongoing consumer strength.

  • The gain reflects continued gradual recovery across sectors including household goods, apparel, and general merchandise.

  • The increase helps cushion retailers against global headwinds, though inflation and supply pressures remain a concern.

Read more: Yahoo Finance 

Tariffs Bite, But Consumers Push Sales Ahead

News date: August 2025
Details: President Trump’s aggressive tariff moves have raised costs for many imported goods, squeezing profit margins in the retail sector.

  • Despite the headwinds, U.S. retail sales jumped 0.6% in August, beating expectations and showing resilience in the face of rising tariffs.

  • Analysts warn the gap may narrow if tariffs escalate further, but for now consumer demand remains surprisingly firm.

Read more: France24

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