Retail is staring at a reset. Bain & Company released a report this week ahead of the Consumer Goods Forum Global Summit in Amsterdam that outlines six major disruptions expected to reshape retail by 2035. These aren’t vague trends. Bain argues they’re already visible and moving faster than many leaders expect.
Retailers juggling tariffs and short-term swings may be focusing on the now. But Bain’s warning is clear: those who keep their heads down too long may miss the shape of what’s coming.
Retail’s Reset: Six Trends That Demand Attention
Bain’s report, The Future of Retail: Six Disruptions That Could Shape the Next Decade, breaks down six areas already pressuring traditional retail models. Each one reflects deeper shifts in consumer behavior, automation, and how companies grow.
1. Algorithms Will Take the Driver’s Seat
Retailers are about to lose control—and that’s not a bad thing. Bain predicts that key functions like pricing, promotions, and product placement will be handed off to automation. Companies that resist automation may leave money on the table. With tighter margins and higher competition, even a few basis points matter.
Retailers have long relied on merchandisers and pricing teams to build an edge. But when algorithms consistently outperform human decision-making, those traditional advantages will shrink.
2. AI Shopping Assistants Will Challenge Loyalty
Customer loyalty may not stand a chance against artificial intelligence. As consumers begin outsourcing their buying decisions to AI tools that prioritize function over brand, digital marketing may become less persuasive.
These shopping agents don’t care if you’re Coke or Pepsi—they care what works best at the right price, right now. Retailers built on brand equity will need to rethink how they stay visible—and valuable—in a world of digital middlemen.
3. Value Will Depend on Context
Personalization won’t just be about calling a customer by name or remembering past purchases. Bain suggests that retailers will need to anticipate what a shopper needs in the moment. Timing, environment, and context will matter more than static loyalty data.
To pull this off, companies must stitch together first-party and third-party data with actual behavioral insights. Not guesses. Not generic segmentation. Actual patterns that tell the full story.
4. Grocers Will Start Acting Like Product Brands
Private-label products are going mainstream. Nearly half of grocery shoppers in the U.S. and Europe now seek out private-label options. That shift could turn grocers into brand owners, not just distributors.
The line between supplier and retailer gets thinner as stores invest in exclusive products they control from top to bottom. The reward? Better margins, less reliance on third parties, and tighter control over quality and branding.
5. Store Counts Will Matter Less Than Store Roles
Physical retail space is no longer just for selling. Bain suggests retailers should rethink what stores are even for. Instead of closing locations outright, they might lease space to third-party sellers, run fulfillment hubs, or shift to franchise models.
It’s not about shrinking. It’s about being flexible. Empty shelf space doesn’t have to mean lost revenue—it could mean a new use waiting to be discovered.
6. Global Growth Will Be a Survival Move
Local scale will hit a ceiling. Retailers that want to compete at the tech and logistics level required by modern customers will need to expand across borders. That could mean acquisitions, joint ventures, or platform alliances.
Buying a company halfway around the world might seem like a stretch. But for companies hunting growth and investment capital, staying inside one country’s borders won’t be enough.
Retail’s Revenue Model Is Already Changing
Bain’s analysis also reveals that large retailers are finding profits outside the traditional buyer-seller model. In 2024, non-trade revenue—including media, financial services, and logistics—accounted for 15% of total sales and 25% of profits among large retailers.
That’s a significant jump from 2021. The growth shows retailers are already moving beyond shelf space and product margins. They’re tapping new revenue streams where control and margins are stronger.
How Leaders Should Respond
Bain’s message is blunt: waiting could be costly. The retailers who take these signals seriously now—while also managing day-to-day challenges—will be in the best position to grow into the next phase of retail.
Marc-André Kamel, who leads Bain’s global retail practice, put it this way: “No one can predict everything, but we already know enough to act. Those who think beyond next quarter, and reinvest wisely, will lead the next chapter of retail.”
Looking Ahead
The retail industry is no stranger to change. But the next decade may move faster and cut deeper than expected. AI, automation, customer control, and new revenue paths aren’t on the horizon. They’re already here.
The question isn’t whether change is coming. It’s who’s willing to adapt before the map gets redrawn.
