If the past several years have revealed anything, it’s that the retail industry is a fickle one, and companies will always have a fresh set of challenges to navigate.

President Trump took office just days ago, and already concerns over tariffs — and what those could mean for consumer spending — loom over the industry. Earlier this month, the administration said it planned to implement a 10% tariff on imports from China and 25% tariffs of imports from Mexico and Canada, aligning with promises President Trump made on the campaign trail.

Uncertainty over diversity, equity and inclusion efforts also remain. Last year, several brands including Tractor Supply and Lowe’s pulled back on diversity initiatives they had previously announced. More recently, Target announced it is ending some DEI initiatives, though noted its commitment to inclusion and belonging. On the other hand, some companies like Costco and Lush have stood firm in their diversity practices.

And retail crime, a hot topic in the industry for the past several years, will continue to weigh on companies. Crime is still a top concern for retailers, according to a report from the National Retail Federation released in late 2024. That includes organized retail crime, shoplifting, theft related to in-store pickup and return fraud. Questions persist over the true impact of crime on retailers.

While much remains unknown for the year ahead, particularly related to policy, what is certain is brands will continue to innovate to connect with consumers. Below, we examine many of these topics, and more, as retailers brace for the year ahead.