As retailers grapple with challenges from complex supply chains to skyrocketing return costs, staying ahead requires bold innovation and smart partnerships. Our new report, The 2025 NRF Innovators: Retail-Focused Tech Companies To Watch, produced in partnership with the National Retail Federation (NRF) Innovation Advisory Committee, is an overview of 50 companies tackling those very challenges. These companies are exhibiting as part of the 2025 NRF Big Show Innovators Showcase this coming week.
Who are the 2025 NRF Innovators, and how are they chosen?
The NRF Innovation Advisory Committee (IAC), a group of over 20 industry leaders, venture capitalists, and technology accelerators (of which Forrester is a member), selected and invited the companies as participants of the 2025 NRF Innovators Showcase. The IAC evaluates companies based on four key criteria:
- Problem relevance. Does the technology solve a critical issue for retailers?
- Significance. How widespread and impactful is the challenge that is being addressed?
- Product-to-market fit. Has the solution proven its value through partnerships and pilots?
- Scalability. Is the company ready to deliver at scale across the industry?
What are some of the retail challenges that these companies tackle?
Retail contributes $5 trillion annually to the US economy and employs over 50 million people, yet the industry faces several hurdles:
- Complex supply chains. Rising costs and global trade shifts are disrupting the flow of goods, leading to a need for more agile and efficient solutions.
- In-store challenges. With over 70% of retail sales still happening in physical stores, retailers must balance operational efficiency with delivering engaging customer experiences.
- High customer expectations. Shoppers now expect seamless, personalized interactions across all channels and touchpoints.
- Costly reverse logistics. Managing returns, which cost retailers nearly $890 billion annually, remains a significant strain on profitability.
This report showcases technologies addressing these challenges head on, offering a roadmap for resilient and profitable retail operations in four areas (see the full list of 2025 NRF Innovators in the table below):
- Revolutionizing supply chains. Streamlined supply chains are nonnegotiable for modern retailers. Companies in this group are transforming supplier collaboration, simplifying global sourcing, and accelerating supply chain communication with rapid electronic data interchange onboarding, among other areas.
- Transforming in-store operations. Physical stores remain the retail backbone, but they need smarter tools. Innovations such as smart carts and enhanced security systems enhance operational efficiency and customer engagement. These technologies bridge the gap between digital and physical retail spaces.
- Personalizing customer engagement. Personalization drives customer loyalty and sales. Tools like content creation and management solutions, shoppable video content, and digital display insights, among others, enable personalized experiences, both online and in the store.
- Streamlining payments and returns. Efficient payment and return processes are key to profitability. Think solutions such as optimizing reverse logistics, minimizing payment declines, integrating payment methods, and enhancing last-mile delivery.
If you’re at the NRF Big Show, do stop by the 2025 NRF Innovators Showcase in the River Pavilion at the Javits Center from January 12 to 14 to meet these companies.
NRF members and Forrester clients can download the report from their respective websites to see more detailed descriptions of each of these companies.
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