The 2025 market and consumer trends are being reshaped by the growing influence of creators, according to the recent Creator Marketing Trends Report from LTK, the first and largest influencer marketing platform. This report emphasizes how creators have become pivotal figures guiding consumer behavior, particularly among younger demographics like Gen Z and Millennials, who increasingly turn to these trusted figures for inspiration and purchase decisions.
Creators are becoming integral to the consumer experience, with staggering statistics underscoring their power; 73% of Gen Z and 57% of Millennials rely on creator recommendations when making purchases. This trust is not built overnight; it is cultivated through consistent engagement and community building. The report reveals the significant impact creators have on guiding consumers from inspiration to purchase, highlighting how endorsement from creators can dramatically influence brand perception.
“Community is Key,” notes LTK, stressing the importance of relationships between creators and their followers. Consumers are growing weary of traditional social media channels, with 74% believing they have lost their social aspect. Consequently, many are exploring alternative spaces for community engagement, leading to the rise of platforms like LTK, which invests heavily in community connection tools.
Trust also enhances the likelihood of purchases. For example, 30% of Gen Z and Millennials have bought products after encountering them just once through creator content. This likelihood rises to 40% after repeated exposure, underscoring the effectiveness of creator endorsement.
Brand trust is another significant factor influenced by creators. The LTK report details how 57% of Millennials and 64% of Gen Z reported increased trust toward brands endorsed by creators. Owing to the strong bonds formed between creators and their communities, LTK consumers exhibit even higher trust levels, reaching 84%. With such stats, it’s no surprise creators are shifting the traditional paradigms of consumer influence.
Interestingly, mobile shopping continues to dominate preferences, with 70% of younger consumers favoring this method. Social shopping also plays integral roles; 64% of Gen Z and Millennials have made purchases based on creator recommendations, emphasizing the vast influence creators wield over purchasing behaviors.
The report also paints creators as the leading sources of user-generated content (UGC), with 84% of consumers expressing increased trust toward brands showcasing creator content on their websites. Video, it seems, reigns supreme, as 76% of Gen Z prefer engaging with creators through video content.
Shifting gears from digital to physical, the retail real estate market is similarly undergoing transformation as brands respond to changing consumer behaviors. The national retail vacancy rate held steady at 4.1% through 2024, with most vacancies found among older centers, leading to fierce competition for desirable new spaces. Paul Hayes, CEO of Seasalt Cornwall, acknowledges the mounting challenges of securing prime locations, noting, “We’ve got over 20 locations marked, but the biggest issue is unlocking them.”
Five key trends have emerged from this competitive retail environment. Smaller store formats are on the rise, as brands embrace agile designs to focus on creating engaging customer experiences rather than simply stocking inventory. Melissa Gonzalez, Principal at MG2, emphasizes this shift, stating, “There’s a shift to smaller… more agile environments.”
Experiential retail is another significant trend, as stores are transforming from mere transactional spaces to immersive environments where customers forge emotional connections with brands. Case studies like Lululemon show how brands can integrate experiences like fitness classes or events directly within the store, fostering loyalty and community.
Brands are also tailoring their geographical expansion strategies, ensuring they understand local consumer behaviors and preferences, particularly as international entrants like Gymshark navigate the U.S. market. Hayes highlights the necessity of thorough local research, demonstrating the importance of community-specific strategies.
Data-driven retail site selection is increasingly guiding brands as they enter new markets, leveraging demographic insights to inform decisions. “We utilize tools like Buxton and Experian customer segmentation,” Courtney Claghorn of Sugared + Bronzed explains. This approach reduces risk and allows brands to make data-informed decisions about where to establish physical presences.
Finally, the shifting preference toward suburban retail locations is reshaping expansion strategies across the board. The CoStar report shows suburban vacancy rates dropping below 4%, reflecting the growing demand for well-placed, accessible locations outside urban environments. Claghorn recognizes this trend among her clientele, stating, “We’re also seeing more opportunities in suburban markets as remote work has shifted how and where people spend their time.”
Overall, as retailers navigate the complex waters of 2025, focusing on smaller store formats, immersive brand experiences, strategic market expansion, data-informed site selection, and heightened demand for suburban locations is pivotal. These trends reflect the broader industry shift toward creating meaningful consumer experiences alongside the realities of landlord demand as the market evolves. Retailers who successfully adapt will be positioned to thrive against the backdrop of heightened competition.