This year’s data challenges the common perception that e-commerce is the future of retail. Read more about that, and why retailers investing in seamless omnichannel experiences, in-store engagement, and strong brand loyalty will win in 2025.
The Retail Radar 2025 report, based on 440 million transactions across Sweden, Norway, and Denmark, reveals a significant shift in consumer behavior. While the pandemic accelerated e-commerce growth, in-store shopping has made a strong comeback, with total retail revenue increasing by 7.4% in 2024.
This shift is mainly driven by Generation Z (ages 18-28), who are increasing their spending in physical stores more quickly than any other age group. The Retail Radar report also highlights a growing emphasis on personal experiences, brand loyalty, and omnichannel engagement.
“This year’s data challenges the common perception that e-commerce is the future of retail,” says Felix Kruth, Chief Product Officer at Voyado. “Instead, we’re seeing a clear return to stores, especially among younger consumers. Retailers that invest in seamless omnichannel experiences, in-store engagement, and strong brand loyalty will be the ones to thrive in 2025.”
Want to learn more? Keep reading.
In 2024, online retail declined by 3.7%, even as overall consumer spending increased. While e-commerce had already seen signs of slowing growth post-pandemic, this data indicates that the market stagnated and contracted compared to the previous year.
One key factor was the underperformance of online sales during Black Week, which failed to match 2023 levels. Since Black Week traditionally contributes significantly to annual online revenue, this shortfall dragged down total e-commerce spending for the year.
Total online revenue 2024
In-store sales experienced a steady increase since the pandemic and grew by almost 12% in 2024. When compared to online sales, it is clear that in-store shopping is becoming increasingly significant during sales periods, with peaks observed in May, November, and just before Christmas.
Total in-store revenue 2024
The most significant growth can be seen in the fashion sector, particularly with premium brands enjoying a remarkable increase of 29.6%. The pharma & health industries also made impressive strides with a 28.5% boost, while fashion resellers experienced a solid growth of 20.4%. This trend highlights how consumers increasingly prioritize self-care, social presence, and the pursuit of quality in their purchases.
Revenue growth per industry in 2024
Even though they’re digital natives, Gen Z is showing a fantastic trend: In-store spending is growing by 27%, more than any other generation!
While they prioritize fewer high-quality items, they are spending more and becoming increasingly deal-savvy. However, with a 44.8% higher return rate than average, they appear more prone to returning items, potentially due to changing preferences or higher expectations around product fit and quality.
Gen Z shopping profile
Even though discount rates have gone up, this hasn’t really resulted in more items being on sale. Instead, it seems that shoppers are being smart about their spending, focusing on purchasing big-ticket items while also returning products more frequently. Hear our CPO, Felix Kruth, discuss discount strategies and more trend spotting in this free-of-charge webinar.
Total monetary value vs discounted items
The Retail Radar 2025 report highlights just how important customer engagement and retention are! It’s exciting to see that shoppers who actively connect with brand communications and loyalty programs generate nearly three-quarters of retail revenue.
Customer communication increases revenue
Download the report and access all insights based on 440 million transactions across Sweden, Norway, and Denmark.
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