What’s next for the retail industry? In 2025, we think shopping will be less about transactions and more about boosting your engagement with shoppers. In fact, 28% of shoppers say the primary reason to shop in stores is to enjoy the experience.
Unified commerce, which blends online and offline channels to create a fun and functional shopping journey, will drive this evolution. More enjoyable retail experiences will be fueled by personalized shopping agents and in-store media opportunities that engage and entertain, along with loyalty programs that turn shopping into a game. And we think we’ll see retailers getting more creative with new tactics aimed at winning the hearts and wallets of Gen Z. So let’s get on with it.
Our 2025 retail predictions:
- Unified commerce will unlock new AI capabilities
- Retailers will build shopping agents for consumers
- Retail media strategies will focus on in-store opportunities
- Gamification will be table stakes for loyalty programs
- Retailers will explore new ways to reach Gen Z
Retail prediction #1: Unified commerce will unlock new AI capabilities
Unified commerce happens when you use a single, integrated platform to manage retail operations across the entire digital and physical shopping journey. With an integrated system, you can unify data from every touchpoint including point of sale, shopper data, inventory information, digital engagement, order management, and marketing. With the right tech stack, you can enable a connected customer experience that can be automated or enhanced by retail AI agents.
Transform Retail in 2025
This has never been more critical, as our research shows that 84% of shoppers expect a seamless shopping experience across a retailer’s app, website, and in store. But 29% feel retailers don’t deliver on that expectation.
A unified commerce strategy provides a seamless, comprehensive view of each customer by linking front- and back-end data. This integration will allow you to build AI agents that deliver highly personalized experiences, such as tailored marketing campaigns and product recommendations, based on real-time customer behavior and preferences. Additionally, it can enable automated merchandising, where AI analyzes sales trends and inventory levels to optimize promotions and stock, enhancing the shopping experience and reducing manual effort. Finally, unified data empowers customer service AI agents to provide more informed and proactive support, leading to faster issue resolution and higher customer satisfaction.
Pro tip: Use an integrated, cloud-based platform to create a single source of truth for customer, product, and order data. Then use advanced analytics and machine learning to help you uncover actionable insights. This data helps you anticipate customer needs, forecast trends, optimize inventory, and personalize marketing efforts.
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Retail prediction #2: Retailers will build shopping agents for consumers
Our Cyber Week 2024 data shows that AI and agents drove $60 billion in online sales through personalized offers and engagements, up 20% year over year. Salesforce alone powered nearly 60 billion AI-generated product recommendations throughout the week.
Per Caila Schwartz, Director of Consumer Insights at Salesforce, “Retailers who invested in AI and agents were able to reap even greater revenue during Cyber Week this year through personalized promotions, recommendations, and support.”
We’ve already seen a strong push for personalized shopping experiences, with consumers wanting tailored recommendations and seamless interactions across all channels. With recent advances in AI and conversational commerce, shopping agents are the logical next step. These intelligent assistants, such as Agentforce Personal Shopper, can provide 24/7 support, analyze customer data to offer personalized suggestions, and create engaging, convenient shopping experiences that cater to tech-savvy consumers. Personal Shopper agents can predict which products a customer is likely to enjoy based on their past interactions and preferences. The more data the agent collects, the more accurate its recommendations become over time.
What does this mean for you? Retailers that use agents as personal shoppers see increased sales and conversion rates because personalized product recommendations increase the likelihood of a purchase. What’s more, by helping customers find the right products, sizes, and fits, agents can significantly reduce return rates. This saves you the operational costs associated with processing returns but also minimizes inventory waste. Finally, you can put personal shopper agents in the hands of store associates to help with clienteling, quickly delivering personalized product recommendations based on the shopper’s history, freeing up time for them to serve more shoppers.
Pro tip: Ensure AI understands your brand and customers. Invest time in training agents on your brand’s voice, product offerings, and customer preferences, so it provides on-brand, relevant, and personalized recommendations. Regularly update the AI with new product information and customer feedback to continuously improve its performance.
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Retail prediction #3: Retail media strategies will focus on in-store opportunities
Retail media refers to the advertising opportunities that retailers offer to brands and suppliers within their owned properties. This includes online and offline channels, such as websites, mobile apps, in-store displays, and even receipts. The primary goal of retail media is to help brands reach consumers at the point of purchase, influencing their buying decisions and driving sales. EMARKETER predicts a $60 billion spend in retail media in 2025.
Most retail media spend is for online formats, such as search. But search is increasingly saturated as more brands start their spending there, so retailers are looking for new inventory supply to sell to brands.
In-store advertising has become crucial for retailers and advertisers as 84% of retail sales still occur in physical stores. In a 2023 Salesforce survey, 16% of shoppers ranked in-store ads as the most helpful for making purchasing decisions (second only to social media ads at 20%), which tied with streaming tv ads. Search followed at 13%, then ads on retailer websites and apps at 12%.
When it comes to purchasing decisions, more people prefer in-store media than online retail media ads, so the industry needs to catch up. Shoppers in stores are in discovery mode and close to the point of purchase. Their intent is clear. Because of this, in-store retail media can have a significant impact on sales volume and revenue.
Despite this fact, FTI Consulting says less than 1% of retail media spending is spent on in-store media. This is about to change, as U.S. in-store retail media is expected to reach more than $1 billion by 2028. We believe there will be a surge in in-store retail media opportunities in 2025, including screens on cooler doors and at self-checkout stations, smart carts, point-of-sale (POS) systems, or audio ads over store speakers. Retailers can strategically interact with customers throughout their shopping experience using tools such as kiosks, digital end caps, vertical banners, and smart carts.
These tools not only engage shoppers but also gather important data, monitor ad views, and assess the impact of advertisements based on purchasing patterns.
Pro trip: Be sure your in-store media doesn’t detract from the overall shopping experience. Thoughtfully integrate in-store media elements into the store’s natural flow. Keep digital signage and audio announcements subtle and well-placed to provide useful information and promotions without disrupting the shopping experience. The key is to enhance, not overshadow, the customer’s journey, encouraging engagement rather than distraction.
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Retail prediction #4: Gamification will be table stakes for loyalty programs
Retail marketers are using gamification to increase customer engagement and drive desired actions. The goal is to create personal connections with shoppers through enjoyable, memorable, and rewarding interactions, which can drive customer loyalty and increase sales, especially through loyalty programs. Tactics include:
- Chance games, such as spin the wheel or scratch off to win prizes
- Tiers, where earning or spending points gives shoppers access to benefits
- Challenges where shoppers complete tasks to earn points within a time period
- Milestones, which shoppers unlock based on completing multiple actions
- Leaderboard rankings that show shopper performance against others
What’s more, there’s been an explosion of retailers introducing interactive video game experiences that give customers the chance to unlock rewards and exclusives. Also, retailers continue to expand into gaming platforms like Roblox with brand-specific experiences. The new twist? Connecting the Roblox game with the retailer’s loyalty membership and incentives, where achievements and time spent playing can unlock rewards in real-life shopping interactions, as well as purchases in the real world that unlock perks exclusive to the Roblox platform.
Why should you game-up your loyalty program in 2025? Our data shows 73% of shoppers plan to take part in more gamified loyalty opportunities in the coming year.
By incorporating more gamification into your loyalty programs, you can turn routine transactions into interactive experiences, making the process of earning rewards more enjoyable and motivating for customers. And 69% of shoppers say gamification would motivate them to more frequently engage with loyalty programs, purchase from a specific retailer, and open a retailer’s app to check their points. By encouraging repeat purchases and upselling through reward systems, gamification can directly contribute to increased sales and revenue.
Pro tip: To make gamified loyalty programs even more personal and effective, use AI to create and scale personalized and engaging experiences. For example, AI can analyze customer data to tailor gamified elements like challenges, rewards, and badges to individual preferences and behaviors, making the loyalty program more relevant and fun. Additionally, AI can dynamically adjust the difficulty and rewards of these gamified elements based on customer engagement, so the program remains exciting and motivating over time.
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Retail prediction #5: Retailers will explore new ways to reach Gen Z
Retailers know the importance of capturing the hearts and wallets of Gen Z shoppers. Born between 1997 and 2012, Gen Z makes up about 25% of the global population. With two billion of them out there, Gen Z is the largest generation ever, with spending power expected to reach $12 trillion by 2030.
But you may need to rethink your approach to this generation.
Gaming: Gen Z enjoys gaming and virtual worlds, like Roblox, Minecraft, and Fortnite. You can win them over with a fun, social, gamified shopping experience. In fact, 84% of Gen Z and Millennials said they planned to take part in more gamified loyalty programs in 2025. And 79% said they would buy more frequently from a retailer with a gamified loyalty program. Use gaming platforms to launch virtual words, which could include virtual fitting rooms, fashion shows, and digital clothing purchases to help build long-term relationships with Gen Z shoppers.
Influencers: Many Gen Zers follow gaming influencers and content creators on platforms like YouTube, Twitch, and TikTok. Influencers often review and recommend products, which can sway Gen Z’s purchasing decisions. Our data shows that 43% of Gen Z follow influencers specifically to discover and evaluate new products, compared to just 22% of the general population. Gen Z is twice as likely to follow influencers than everyone else. Partnering with the right influencers can significantly boost your brand credibility and drive sales.
Generative AI inspiration: Gen Z also interacts with generative AI when making purchasing decisions, often using AI-driven tools for personalized recommendations and product information. Our data shows that 29% of Gen Z have used generative AI for product purchase information, as compared to 17% of the general population. AI-powered platforms that offer personalized shopping experiences, such as style recommendations or virtual try-ons, are particularly appealing to them.
Pro tip: No matter which tactic you use, be sure to create authentic, co-branded experiences that blend all elements seamlessly. Don’t change your brand to attract Gen Z, but find what appeals to them about your brand and focus your efforts there. Then partner with influencers who genuinely align with your values, develop gamified experiences, and offer AI-powered interactions that feel organic to this generation. The key is to make the experience fun, authentic, and shareable, fostering a sense of community and connection with your brand.
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Put these retail predictions to work in 2025
In 2025, unified commerce and AI agents will change how retailers do business. By offering seamless online and offline experiences, you can win new customers and maintain relationships with loyal ones. If you increase engagement, you’ll stay competitive and meet the evolving expectations of their customers.
