Listrak, a person-first marketing automation platform, has released its H2 2025 Retail Outlook Reports, focusing on Fashion, Beauty, and General Retail. Leveraging Listrak Intelligence, these reports analyze key trends and provide actionable strategies to help retailers navigate economic uncertainties, supply chain disruptions, and evolving consumer behaviors in the second half of 2025.
37% of shoppers plan to cut non-essential spending in H2 2025
Imports from China dropped 65% YoY, with 60% more order cancellations
53% of consumers will use AI for purchase decisions in 2025
Low-inventory SMS alerts drove 42% YoY revenue growth
Fashion to grow 3-5%, beauty e-commerce to account for 33% of sales
Listrak recommends AI-driven personalization and inventory adjustments
With 37% of shoppers planning to reduce non-essential spending during summer and holiday seasons, value-driven behavior is paramount. Private label brands and secondhand options, such as those from Nuuly and Rent the Runway, are gaining traction. “The first half of 2025 reminded us that retail success is not about predicting the future – it’s about being prepared for the future,” said Jamie Elden, Chief Revenue Officer, Listrak. “While change is constant, with the right insights and tactics, retailers can convert change into advantage.” Listrak suggests leveraging price-drop alerts via email, SMS, and app push, automating campaigns for discount-engaged audiences, and promoting clearance and pre-loved categories to capture price-conscious consumers.
Supply chain disruptions, driven by a 65% year-over-year drop in imports from China and a 60% increase in order cancellations compared to 2020, are creating inventory unpredictability. Listrak’s data shows low-inventory SMS alerts generated a 42% year-over-year revenue increase, proving scarcity drives sales. To adapt, Listrak recommends auditing inventory triggers to align with faster fulfillment speeds, raising low-inventory thresholds, and extending “back in stock” alert windows to account for longer restock timelines.
AI is reshaping retail, with 53% of consumers planning to use AI tools like ChatGPT for purchase decisions in 2025, particularly during the holiday season. Over 50% of fashion executives see generative AI as a key driver of product discovery, and 43% of retailers are using chatbots to reduce customer service friction. Listrak advises personalizing popups for AI-referred users, activating channel affinity in segmentation to prioritize high-engagement channels, and using Listrak AI Product Recommendations to deliver real-time personalized emails and onsite experiences.
Fashion is projected to grow 3-5% in H2 2025, driven by non-luxury brands, while e-commerce is expected to account for one-third of beauty sales. SMS campaigns are particularly effective, with beauty shoppers 2.6 times more likely to convert after price-drop alerts and fashion consumers showing increased mobile purchase conversions. Listrak’s strategies, backed by data from 125 billion messages sent by over 1,000 e-commerce clients in 2024, emphasize AI-driven personalization and loyalty programs to boost engagement and retention.
Listrak’s H2 2025 Retail Outlook Reports provide a data-driven playbook for retailers to capitalize on AI advancements, manage supply chain challenges, and cater to value-driven consumers. By implementing these strategies, fashion and beauty brands can drive revenue and resilience in a competitive market.
Listrak is the person-first marketing automation platform that seamlessly integrates data, identity, and cross-channel messaging to power hyper-personalized customer experiences. Built for leading retailers and brands, Listrak's email, mobile marketing, push, and web solutions drive growth, maximize efficiency, and deliver exceptional revenue results.
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