We expect physical stores to remain main destination for fashion shopping in 2025

Modern retail ends in a positive mode 2024, and is looking with caution at 2025, as inflationary pressure impacted sales across all channels. To find out more, Business Review asked Adrian Staicu, CEO at Hermosa, how does 2024 ends and what estimates are there for 2025. Adrian Staicu will be present at Re:FOCUS on Retail, Couriers & Logistics 2025.

Business Review: How did sales evolve in 2024, and what are your projections for 2025?

Adrian Staicu: In 2024, we observed a continuation of the trends from the previous year; however, inflationary pressure impacted our sales across all channels. During the summer period, we saw a 10-15% decline compared to our initial projections, which we attribute to the significantly higher costs for travel and vacations. These expenses took up a considerable portion of consumers’ budgets, leaving less room for fashion purchases.

Although the beginning of autumn is known as one of the best times of the year for sales, it was challenging. Factors such as vacation spending and economic uncertainties influenced consumer behavior. The surprise came when the results of the following months came in line with our objectives. In these conditions, we project strong results for the end of the year, which we expect to finish with consistent growth across all channels.

Alongside the development of our international online store, we are now present in Fashiondays Romania, Bulgaria, and Hungary. The initial results are promising, which is why we are already in advanced discussions with other platforms, offering us potential for additional growth and international exposure opportunities in 2025.

We observe a trend in fashion shopping focused on needs, with a reduction in impulse purchases. Additionally, the budget allocated for fashion is lower than in previous years, with consumers preferring high-quality products with an “evergreen” design, even if the price is higher compared to “fast fashion” items.

What are the main development trends for offline and online/e-commerce retail in 2025?

In 2025, we expect retail to follow the trends from 2024 and previous years, with physical stores remaining the main destination for fashion shopping.

At HERMOSA, we aim to maintain the pace of opening new stores, adding value to the shopping experience by integrating online services and creating an omnichannel experience.

On the e-commerce side, we anticipate a moderate growth of up to 35% compared to 2024. However, challenges are present, with high marketing costs mainly driven by fierce competition from large Chinese companies and the entry of many new competitors into the market. In this context, beyond attracting new customers – a focus we have emphasized since 2024, including significant investments allocated to strengthening the HERMOSA brand through awareness -building campaigns – we will concentrate on customer retention through offers and personalized services, as well as an omnichannel experience strategy.

Innovation is crucial in this context. We are intensively exploring the use of artificial intelligence in all aspects of our business, including sales channels. The “Made in Romania” message remains a strong pillar of our communication, and sustainability is a central point in our dialogue with customers.

For 2025, we are focusing on careful segmentation of our customers, adapting to their specific needs. Retention will be supported by continuous improvement in product quality and providing better, more personalized services. We plan to diversify our product range to better meet our customers’ needs.

In our 30 years in the fashion industry, we have developed remarkable resilience, based on our solid tradition.

Will consumption increase next year, considering we expect tax and duty hikes?

We anticipate that tax and duty hikes could influence our customers’ behavior. However, at the same time, they have demonstrated remarkable adaptability to economic changes. Although these increases may affect budgets, we believe customers will continue to choose high-quality products with “evergreen” designs over cheaper “fast fashion” items.

At HERMOSA, we aim to address these challenges through innovation and diversification, introducing new lines of sustainable and personalized products. Customer retention will be essential, and we plan to invest in loyalty programs and improve the shopping experience.

Technology will play an important role in maintaining and growing the fashion segment. We will continue to invest in digital platforms that facilitate a seamless shopping experience both online and offline. We also aim to use artificial intelligence to assist our customers throughout the shopping journey, including in personalizing product recommendations.

In conclusion, we are confident that, through adaptability and innovation, we will be able to maintain and even increase consumption in 2025.