Fast-paced tech innovations and ever-changing consumer habits, are setting up the retail world for a thrilling ride in 2025. Here are some of the biggest trends and hurdles that retailers and brands will face.
In 2025, consumers won’t just shop in one place—they’ll hop between e-commerce, apps, and physical stores like they’re effortlessly navigating a multi-channel maze.
Let’s paint a picture.
Imagine this; Tina first sees a nice-looking sweater in a social ad and shows it to her friend, who says, “Buy it!”. Tina then buys it from the store’s app and chooses the home delivery option. Once it arrived, Tina realized the sweater was not as amazing as expected, so she returned it to the nearest shop.
What’s the challenge for retailers and brands in this case? Being available to their customers and creating a seamless experience regardless of where the customers shop – online, via mobile, or in a physical store. It means having consistent pricing, branding, promotions, and customer service across ALL platforms. They must also be able to consolidate data from several sources, ensuring purchase information and inventory sync.
It’s no easy match, but the odds of creating an outstanding customer experience increase if adopting the right technology (such as CXP platforms, AI, machine learning, and retail marketing automation tools) and unifying some of the otherwise siloed data. Without the right solution, the revenue and customer loyalty will most likely take a deep dive (and you don’t want that!).
In the competitive landscape of retailers, buying traffic to attract new customers is expensive. Shoppers have also become more price-sensitive due to the increased cost of living. This results in it being trickier to maintain customer loyalty, even though it’s more important than ever to make sure they stay.
As a solution, many companies turn to loyalty programs and gamification that encourage more shopping by introducing rewards and coupons that mimic the rewards you accumulate in a video game.
But loyalty is a 2-way street, and retailers must ensure that their existing customers feel special. It’s about building a trusting relationship – truly understanding what is important to their audience and rewarding them right. Should your customers earn points for completing things other than a purchase? Should they be invited to VIP events to see early product releases? Should they get inspirational, hyper-personalized content, instead of rewards? The possibilities are endless. Here are a few tips on how to increase the ROI for your loyalty program.
“At By Malene Birger, we believe loyalty is about creating meaningful connections with our customers. It’s not just about rewards or discounts—it’s about inspiring them through personalized experiences, storytelling, and exclusive opportunities that reflect the essence of our brand – and rewarding them at the right moment. By focusing on emotional engagement and tailoring every interaction, we can build lasting relationships that go beyond transactions“, says Laufey Lúðvíksdóttir, CRM and Loyalty Specialist at By Malene Birger.
It’s time to forget one-size-fits-all promotions once and for all. Now it’s time to dive deep into personalization and your customer data, because customers today demand relevant and customized experiences. An easily navigated site is simply not enough… The 2024 Forbes State of Customer Service and CX Survey found that 81% of customers prefer companies that offer personalized experiences.
The expectations are sky-high – whether in a text, an email, a social ad, on the e-commerce site, or in-store. Shoppers want product recommendations that feel like they’re coming from their best friend. They want to be part of a community. They want rewards that target their personal interests and preferences. They simply anticipate that retailers create content that is as personal and spot-on as their Netflix account, YouTube page, or social media feed.
To be able to deliver an A-game shopping experience based on demand, trends, and inventory levels, retailers and brands need a deep understanding of the shoppers’ real intent. It’s therefore not shocking that 69% of brands said they would increase their investment in personalization—despite challenging economic headwinds. So, make sure you’re part of that percentage and let AI be your helping hand.
The competition is fierce. While the giants will continue to dominate the retail space through their vast data infrastructure, technological innovation, and customer reach, Direct-To-Consumers (DTC) brands continue to challenge the market with their low pricing points, wide range of products, and seemingly quick delivery. Not only do retailers notice the competition, but most suppliers are also looking for the best way to cut overhead and ensure ROI on every part of the budget spent.
Therefore, staying traditional won’t cut it. Now is the time to innovate, create unique value propositions, and leverage investments in reach and platforms smartly. Retail media is one way that enables retailers to monetize their platform and the loyal audience they have built over the years. It enhances their ability to influence consumer behavior and drive more sales for suppliers who are looking for ways to invest in advertising close to conversion.
“One reason for the rapid rise of retail media is the decline of third-party cookies, which has made it harder for advertisers to track consumers across the web. Retail media solves this by using first-party data collected directly from shoppers’ purchases and behaviors,” explains Björn Karlström, Portfolio Product Manager at Voyado.
In short, all retailers can start offering retail media packages to brands. However, depending on the retailer’s business, it may look slightly different. Start by clarifying the channels you could include in your retail media network and the advertising reach you could offer your suppliers. For more advice around, read our retail media guide here.
With data breaches and privacy violations becoming more frequent, consumers are increasingly concerned about how their personal information is being used. In fact, retail and consumer industries have become an attractive target for cybercriminals, accounting for 11% of cybersecurity incidents. Retailers are, therefore, under pressure to ensure robust cybersecurity practices and transparency in data collection, especially with the growing use of AI to track consumer behavior and preferences.
So, if you have yet to invest in Infosec, it’s time to act, mainly due to the possible loss of future revenue and for the sake of trust. Customers are incredibly aware of privacy issues, such as GDPR and cookie consent – and if you drop the ball here, your customers’ trust in you can be lost.
Retailers in 2025 need to embrace innovation and agility to remain competitive. While technology and automation provide opportunities for efficiency and personalization, they’ll also introduce complexities related to data privacy, cybersecurity, and the need for constant adaptation to shifting consumer expectations.
All this acquires more from the employees who now need to add technical expertise, data analytics, and digital marketing to their skill sets. Thankfully, there’s much help to get.
Voyado tracks your customers’ behaviors, quickly places product recommendations based on customer data, and automates omnichannel communication – while keeping your data safe. Learn how you can push away the challenges while growing your revenue.
We love all things customer and product data, and would love to chat about your brand’s individual challenges, and how our solutions can help.
