As we enter 2025, the retail landscape continues to evolve at a rapid pace, driven by technological innovation. Staying competitive requires New Zealand businesses to observe global advances, and embrace the emerging tools that will enhance your business’s efficiency, improve customer experience, and safeguard assets.
There are many technology trends shaping the way customers around the world experience retail, and more that help retailers to super-charge the efficiency and effectiveness of their businesses.
These are our “Vitag Top 5” technologies that every New Zealand retail executive needs to stay on top of in 2025.
TREND 1: RFID Powers Real-Time Inventory Management & E-Commerce
Radio Frequency Identification (RFID) has emerged as a game-changer for inventory management, replacing traditional barcode systems with automated, real-time stock tracking (particularly essential in powering e-commerce).
Major global retailers like Zara, Target, Amazon, Walmart, and Uniqlo have adopted RFID technology across their global operations to enhance supply chain visibility and improve inventory accuracy.
For example:
- Zara rolled out RFID in 2014 and now reports 99% inventory accuracy across its stores, enabling faster replenishment and fewer stockouts2.
- By automating inventory checks, Uniqlo3 reduced labour costs and freed up staff to focus on customer service.
In 2025, RFID’s ability to provide end-to-end inventory transparency continues to make it indispensable globally. Retailers can use it to analyse sales trends, optimise stock levels, and ensure products are always available for customers—all critical to maintaining a competitive edge instore and online.
TREND 2: AI-Powered Personalisation at Scale
In 2025, retailers will use AI to improve personalisation at scale, moving beyond basic messaging to deeply individualised experiences – transforming the way retailers interact with their customers.
Driven by the fact that 44% of shoppers find current retail marketing emails irrelevant4. AI will analyse browsing habits, purchase history, and real-time interactions to create immersive and relevant shopping experiences, boosting customer satisfaction and driving loyalty.
Amazon, for instance, uses AI to drive its recommendation engine, which accounts for 35% of its total sales5 – a tool which promises to amplify incremental sales for e-commerce businesses around the world. Similarly, Nordstrom leverages AI to personalise in-store and online experiences, such as suggesting outfit combinations based on customer preferences6.
In 2025, expect more retailers to integrate AI into mobile apps, loyalty programs, and CRM systems to deepen customer relationships and drive revenue. The result is a shopping journey that feels curated specifically for the individual.
TREND 3: Enhanced Security with RFID EAS Systems
Retail shrinkage remains a significant challenge, with losses from shrinkage (shoplifting and loss of goods) totaling over $1.3 billion annually in New Zealand, with 82% of retailers affected7.
Electronic Article Surveillance (EAS) is a significant part of the solution when it comes to combatting retail crime, and RFID technology is set to revolutionise EAS in 2025 and beyond.
Combining security with data-driven insights, unlike traditional EAS systems, RFID-enabled solutions provide real-time tracking of items and improve loss prevention efforts.
Giant French sports retailer Decathlon has set an example by integrating RFID into their EAS systems, achieving a 50% reduction in shrinkage across pilot stores8.
By tagging items with RFID, Decathlon can identify theft attempts instantly, while also collecting valuable data on shopper behaviour.
In 2025, RFID EAS systems are expected to become more prevalent, with New Zealand businesses beginning to experience the gains enjoyed by global retailers.
New solutions available from Vitag help retailers not only deter theft but also optimise product placement, analyse foot traffic, and enhance overall store security.
TREND 4: Seamless Omnichannel Experiences
As consumers demand flexibility, omnichannel strategies that integrate online and offline shopping are crucial. Technologies like buy online, pick up in store (BOPIS), mobile POS systems, and unified inventory tracking are driving this trend.
Retail giants like Walmart and Target have mastered BOPIS, with Walmart reporting 30% growth in pickup services during 20249. Meanwhile, Nike uses mobile POS devices (such as those by InVue) to let customers check out anywhere in-store, eliminating long queues and enhancing convenience10.
Taking autonomous checkout to a stratospheric level, Amazon Go stores, launched in 2018, use a combination of computer vision, sensor fusion, and deep learning to enable a 100% checkout-free shopping experience called “Just Walk Out”. Using smart technologies and CRM, Amazon is able to automatically charge purchases to the customer’s account as they leave the store. As of 2024, Amazon has expanded this technology to larger format stores and has licensed it to other retailers12.
In 2025, the focus will be on refining these systems to make the transition between digital and physical shopping seamless. Retailers who excel in omnichannel strategies will build and retain customer loyalty and increase revenue.
TREND 5. Sustainable Technology Solutions
Sustainability is no longer optional in retail; it’s a business imperative. Brands are adopting eco-friendly practices, including energy-efficient store technologies, recycling programs, and sustainable packaging.
H&M, for example, has introduced AI-driven recycling bins that analyse discarded items and provide recommendations for recycling or resale11.
On the technology side, RFID also plays a role in sustainability by reducing waste in inventory management. Accurate stock tracking minimises overproduction and unsold stock, benefiting both the environment and the bottom line. Our Vitag team are experts in helping New Zealand businesses to realise the benefit of an RFID system.
In 2025, we’ll see a greater push for technologies that not only meet customer demand for sustainability but also align with regulatory changes and global environmental goals.
How Can You Prepare Your Business for the Future of Retail
The retail industry in 2025 will be defined by its ability to adapt to and integrate these cutting-edge technologies. RFID, AI, and sustainable practices are no longer optional—they are essential to thriving in a competitive marketplace. By embracing these trends, New Zealand retailers can deliver exceptional experiences, streamline operations, and future-proof their businesses.
Stay ahead of the curve by exploring these innovations and evaluating how they can transform your retail operations today. For more insights or to discuss how Vitag’s solutions can help, contact our team of experts. Let’s make 2025 your most successful year yet.
References:
- The Future of Commerce: Retail Trends 2025
- Wall Street Journal: Zara Builds Its Business Around RFID ‘Fast Fashion’ Meets Smarter Inventory; Retailer Learns From Others’ Mistakes
- Wall Street Journal: The Self-Checkout Even Haters Will Love
- Emarsys: AI in Retail Report (White Paper)
- Forbes: How Amazon Has Reorganised Around Artificial Intelligence and Machine Learning
- Retail Dive: Nordstrom Leverages Generative AI for Holiday App Refresh
- Hoed Research: Shrinkage, a $1.3 Billion Dollar Problem for New Zealand Businesses
- Decathlon Sustainability: Product Traceability and RFID Technology at Decathlon
- Walmart: Walmart 2024 Annual Report
- Mastercard: Using Only Mobile Point-Of-Sale Devices to Check Out Customers
- H&M Foundation: AI-Powered Smart Garment Sorting System Automating Textile Recycling
- ResearchGate.net: Reinventing the Retail Experience – The Case of Amazon Go