Technology has reinvented retail. Retailers are shifting away from relying on their gut to make decisions but rather utilizing data and technology to fuel their decision-making. They are increasingly combining historical and performance data with advanced technologies, such as AI, to power and scale data-first strategies. In the second annual NuORDER Retail Insights Report (2025 edition), 40% of senior retail buyers and planners reported investment in AI and automation as a top business priority – double what was reported in 2024. Buying and planning are now fully anchored in quantitative data, predictive analytics, and AI-driven forecasting, with instinct playing a supplemental role.

In addition to helping retailers optimize their product mix, technology is also playing a vital role in growing customer loyalty. A customer-first approach is framing how retailers use data to make buying decisions and beyond. In previous years, retailers were focused on cost-cutting, but today they want to reduce inventory risk and strengthen supply chain resilience, which is a more proactive, disciplined, and long-term approach to growth. Accurate forecasting, streamlining inventory management, and deepening supplier partnerships are helping retailers manage consumer demand fluctuations and supply chain disruptions.

Retailers that blend data-driven decision-making with a deep understanding of customer behavior will reduce risk, strengthen supply chains, and create more resilient merchandising strategies for the future.

Looking ahead, the retailers that thrive in the new era of data-first, customer-first will be those that invest in solutions to maximize data capture and turn it into valuable insights. However, the art of buying and merchandising will not completely disappear. Instinct and storytelling will still be a critical component of an exceptional customer experience that will set retailers apart and enable them to thrive.