Retail’s divergent growth in 2025 – tech keeps boosting retail
While predicting the future is always uncertain, trend forecasting in sectors like retail is more systematic, driven by customer behavior, tech advancements, and societal changes. The next 12 months in the retail sector will be driven by tech trends such as personalized shopping experiences through AI, enhanced social commerce, AR shopping, voice commerce, and tech-driven green retail initiatives.
Personalized Customer Experiences Made Possible Through AI
AI’s influence over the retail sector looks set to experience a higher degree of personalization for shoppers than ever before. Walmart has utilized AI as a personal party planner by integrating AI algorithms to suggest Super Bowl snacks based on their customers’ purchasing history, while Albert Heijns, the Dutch supermarket, has offered their customers even higher degrees of personalization by offering their shoppers gourmet weekly meal plans powered by AI simply by customers taking pictures of the content of their fridge.
Another innovative retailer that has enhanced shopper personalization is the high-end department store, Nieman Marcus. Through an AI-powered app, known as “Snap. Find. Shop” Nieman Marcus enables their customers to take photos of everyday objects, in which this app will find a similar or exact match based on the image and assist customers to find the product they are looking for either online or in one of Nieman Marcus’ offline department stores.
Beyond the retail sector, AI has been incorporated by various other industries, like the online gambling sector. AI is used in online casinos to analyze player behaviors, game history, and playing preferences, from this data AI can tailor game recommendations, for instance, if a player plays games like Book of Dead, Tombstone RIP, or Hand of Anubis slot games then AI could recommend similar kinds of casino games in addition to tailored promotions and bonuses.
Furthermore, these casinos further enhance the overall gambling experience by providing fast payouts, access to thousands of provably fair games, and ensuring players have anonymity when they gamble. With AI providing customers with enhanced personalized experiences within the retail industry and beyond, it looks clear that AI will play a key role in driving consumer experiences for years to come.
The Rise of Social Commerce and Mobile Shopping
Social media is no longer simply used to share updates or stories; it has evolved into an emerging retail powerhouse. In 2025, social commerce will dominate, with platforms like TikTok and Instagram transforming how consumers shop and make buying decisions. Many shoppers will no longer rely on visiting a brand’s website to make transactions as they will be able to conveniently purchase the products they need directly from curated Instagram and TikTok posts. In 2024 social commerce generated $71.62 billion in the USA alone and in 2025 looks set to build on that momentum by further integrating inspiration and transaction in a seamless shopper journey that transcends multiple touchpoints.
With a simple tap, consumers will be able to discover everything they need to know about a product without ever having to leave social platforms thus enhancing convenience and encouraging impulse purchases, making social commerce a highly influential touchpoint for modern retailers to incorporate into their strategies in the next 12 months.
Mobile apps are also reshaping the in-store experience, offering a bridge between physical and digital retail. Apps equipped with real-time inventory tracking can guide customers to specific products within a store. This enhanced convenience not only improves customer satisfaction but also drives higher conversion rates.
Augmented Reality (AR) for Enhanced Shopping Experiences
AR technology is becoming an essential tool in creating immersive retail experiences. In 2025, more brands will leverage AR to allow customers to visualize products in real-world contexts before purchasing. Fashion retailers will adopt AR-powered virtual fitting rooms, with the market expected to expand by $6.5 million in 2025. These virtual changing rooms allow consumers to try on clothes, glasses, or makeup from 3D dressing room mirrors allowing consumers to try on multiple fashion items in a matter of seconds thus making the entire process of purchasing clothes more immersive and convenient than ever.
Additionally, furniture and home decor brands will refine AR apps, allowing customers to see how items fit in their spaces by simply populating images that consumers have taken with various product items to give them a sense of the look-and-feel of their home spaces once the products they have purchased are placed in their homes.
Furthermore, in brick-and-mortar stores, AR displays will offer deeper product insights, such as ingredient transparency, usage tips, or complementary product recommendations. By making shopping more engaging and practical, AR will enhance purchase confidence and reduce return rates, elevating the overall shopping journey.
Sustainability-Driven Tech and Green Retail Innovations
Consumers are increasingly prioritizing sustainability, and technology is helping retailers align with this demand. Blockchain technology will play a crucial role in providing transparency by allowing customers to trace the journey of products, ensuring ethical sourcing and sustainable practices.
Additionally, Smart packaging solutions, such as QR codes, will offer insights into a product’s lifecycle and proper disposal methods. AI-powered inventory management systems will help retailers reduce waste by optimizing stock levels and predicting demand with greater accuracy.
Voice Commerce and Smart Assistants
The rise of voice-activated devices will make voice commerce a mainstream shopping channel in 2025. Consumers will increasingly rely on smart assistants like Amazon Alexa, Google Assistant, and Apple’s Siri to place orders, reorder essentials, and check delivery statuses with ease.
Retailers will focus on optimizing product listings for voice search to ensure their offerings are easily discoverable. Integration with IoT devices, such as smart refrigerators, will create a seamless shopping experience where groceries can be reordered automatically as supplies run low. Voice commerce will offer unparalleled convenience, catering to a tech-savvy and fast-paced audience while reshaping how people shop.
Conclusion
The new year looks set to drive its retail landscape to new heights through various tech trends that will redefine how consumers shop and make purchasing decisions. From AI driving personalization to social commerce influencing shopper decisions, and from AR creating more immersive experiences than ever before to voice commerce driving convenience and tech enabling retailers to be more sustainable 2025 looks like an extremely promising year for retail.
