The retail landscape is rapidly changing, with innovations in AI, loyalty, and retail media opening up new possibilities. From smarter personalization to creative gamification and evolving ad networks, the year ahead promises new opportunities for brands to connect with customers.
In a recent EMARKETER webinar, principal analyst Sky Canaves, and senior analyst Blake Droesch discuss their forecast for the industry in 2025. Here’s an overview of the trends that are set to make an impact:
AI: A Game-Changer for Predictive Analytics
Retailers are blending generative AI (GenAI) with predictive AI to unlock smarter personalization and operational efficiency. According to a study conducted by Coleman Parkes Research, 56% of marketers believe implementing GenAI will result in substantial improvements in predictive analytics. By combining the creative capabilities of GenAI with the precision of predictive models, retailers can better anticipate customer needs and streamline decision-making. Retailers are also confidently using AI for demand forecasting, fraud detection, and AI-powered shopping assistants, underscoring its game-changing potential to enhance operations.
Loyalty: Driving Engagement Through Innovation
Loyalty programs are evolving to seek out even deeper customer engagement, with gamification emerging as a key strategy. Retailers are incorporating interactive elements, such as product match quizzes, gift guides, and lookbooks, into their loyalty initiatives and they’re seeing impressive results. Brands that are leveraging these gamified experiences are reporting an 85% completion rate on average, with a 50-60% lead capture rate. These programs not only capture valuable data but also act as enjoyable, memorable, and useful interactions for customers. The success of these efforts lies in offering genuine value and building meaningful emotional connections, ensuring customers feel rewarded for their time and loyalty.
Retail Media: The Big Players Dominate
Retail media ad spending has surged nearly fivefold since 2019, with Amazon and Walmart commanding 84% of the revenue, leaving smaller networks struggling to compete. The growing consolidation of ad dollars among these dominant players is driven by their advanced measurement tools and standardization capabilities. To address this, smaller retailers are diversifying their strategies with off-site advertising, in-store digital signage, and partnerships with ad tech platforms to enhance their offerings. These solutions enable retailers to better meet advertiser demands and remain relevant in an increasingly competitive retail media landscape.
Want to explore these trends further? Watch the full Retail Roadmap 2025for a deeper look at what’s driving retail forward!