Retail Observer

May 2025

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

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RETAILOBSERVER.COM MAY 2025 30 A S S O C I AT I O N [ N E W S ] T he kitchen and bath industry has entered a transformative era, shaped by shifting consumer preferences, emerging technologies, and a renewed focus on sustainability and personalization. Retailers, showrooms, and manufacturers are seeing a new wave of demand, where digital and in-person shopping experiences must coexist, and product innovation plays a critical role in driving sales. As the National Kitchen & Bath Association (NKBA) continues to track key industry trends, our insights from KBIS 2025 have made one thing clear: success in kitchen and bath retail requires a forward-thinking approach that's aligned with consumer expectations and market shifts. Here's what's shaping the industry's future – and how retailers can stay ahead. THE HYBRID SHOPPING EXPERIENCE IS NON-NEGOTIABLE While digital transformation has reshaped many industries, kitchen and bath consumers still prioritize in-person experiences. However, the way they engage with products has changed. Buyers now expect a seamless blend of online research, digital tools, and in-store expertise. A recent NKBA study found that: • 78% of kitchen and bath customers start their journey online but still visit a showroom before purchasing. • 62% of retailers say that virtual consultations have helped them close sales faster. • 45% of homeowners are using augmented reality (AR) or visualization tools to explore design options before stepping into a store. Retail Opportunity: Retailers who invest in virtual design consultations, interactive product visualization tools, and an omnichannel marketing strategy will have a competitive edge. Offering online resources – such as digital mood boards, live chat support, and AI-driven product recommendations – can guide consumers through the decision- making process before they even enter a showroom. SMART TECHNOLOGY IS NOW A STANDARD EXPECTATION Connected homes are no longer futuristic – they're today's reality. Consumers are actively seeking smart kitchen and bath solutions that integrate with their lifestyle, enhance efficiency, and provide long-term cost savings. At KBIS 2025, smart home integration was one of the most talked-about trends, with manufacturers showcasing advancements such as: • AI-driven kitchen assistants that help with meal prep and grocery tracking. • Voice-activated faucets and appliances. • Smart mirrors with health tracking and lighting customization. • Water-efficient fixtures with remote monitoring and leak detection. Retail Opportunity: Retailers need to provide interactive demonstrations and educational experiences around smart products. Hosting in-store tech workshops, showcasing real-time integrations, and training staff on the benefits of connected appliances will help customers feel confident in their investment. SUSTAINABILITY IS DRIVING PURCHASE DECISIONS Eco-conscious living is no longer a niche trend – it's a mainstream priority. The demand for sustainable cabinetry, energy-efficient appliances, and water-saving fixtures is at an all- time high, and customers are more informed than ever. They want transparency about materials, manufacturing processes, and long-term environmental impact before making a purchase. Key statistics from NKBA's 2025 Sustainability Report show: • 74% of consumers say energy efficiency is a top priority when THE FUTURE OF KITCHEN & BATH RETAIL: Trends driving sales in 2025 and beyond

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