The 2025 State of Visual Merchandising Report
Powered by leading global research firm, NewtonX, the report reveals that 88% of C-level retail executives across the U.S. see a future where visual merchandising blends art and technology. Flagship says the winners will be those who act now.
The State of Visual Merchandising in 2025, an industry report (developed in partnership with NewtonX, recently recognized by Greenbook as a leading B2B research firm) revealing how inconsistent execution is draining millions from retailers’ bottom lines, and how technology can close the gap. With data from top fashion, footwear, department store, beauty, and jewelry brands, the report highlights that despite increased investment, many teams still lack the tools to execute consistently or measure impact in real time.
Key findings include:
- Retail’s next chapter: 88% of leaders see visual merchandising blending art with tech. Think real-time dashboards, AI-powered displays, and data-driven creativity transforming the shop floor.
- The Execution Gap: 68.9% say inconsistent execution is their top challenge. In beauty, that number jumps to 88.9%. Over a third (35.6%) have zero real-time visibility into store compliance and 40% still rely on manual VM processes.
- The Revenue Cost: 82.3% report sales losses due to poor execution in the past year; 31.1% lost over $100K, with footwear brands most at risk (54.5% above this threshold).
- Data Disconnect: 89.9% say real-time insights would improve execution, but only 11.1% have them today. Most still rely on anecdotal store feedback.
- Physical is Back: 38.8% of retailers plan to boost investment in physical stores over the next two years—outpacing online spend
“The data is screaming, poor visual merchandising isn't just a missed opportunity, it's a hole in retailers' pockets worldwide," said Simon Molnar, CEO of Flagship. "Retailers are leaving millions on the table by not arming their teams with real-time insights and intelligent tools to execute flawlessly and measure what truly matters. The next frontier in retail isn't just about beautiful stores, it's about seamlessly blending that immersive creativity with measurable, real-time results.”
The industry report outlines three critical actions for retailers ready to compete in this new era:
- Close the visibility gap between HQ and the shop floor.
- Replace intuition with real-time, actionable insights.
- Equip teams with scalable execution tools that preserve creativity while ensuring consistency.
Lindsey Carter, CEO & Founder of SET Active, comments “This research confirms what many of us already sense: the next era of physical retail isn’t just about creativity, it’s about intelligence and consistency on the shop floor. This is essential reading for retailers everywhere.”
You can download your copy here.