5 retail trends shaping the way we shop in 2025

While the lines between physical and digital retail continue to blur, in-store shopping is still a popular channel. 

Boomers especially value the ability to touch, try on, and walk out with purchases. 

For younger shoppers, it’s all about the experience. Think virtual reality try-ons, cafes, and exclusive events. In response, 32% of retailers plan to invest in tech to make their stores more interactive.

Ecommerce, meanwhile, wins on price, variety, and convenience. Social media, especially TikTok, is a key driver, thanks to its in-app checkout. For Gen Z, that’s a must-have: 28% prefer retailers who sell through social channels.

Ultimately, it isn’t about ‘online vs in-store’—38% of shoppers value both equally. What they do want, however, is to be able to move easily across channels. For example, they might want to start the journey in store and finish it online.

This is where unified commerce comes into play. Of the retailers with connected channels, 40% report higher sales and increased customer satisfaction, and 34% a better understanding of their customers’ behavior.

Poor payment performance can lose shoppers.   

Case in point: 51% of shoppers will walk away if they can’t use their preferred payment method. For the Gen Z and Millennials who favor digital wallets, it’s even more important. No contactless option? No sale.

Another important factor is speed: 40% of shoppers will abandon a purchase if the checkout process takes too long. 

To keep things running smoothly in store, over 31% of retailers are investing in mobile point-of-sale (mPOS) to cut lines. But on the ecommerce front, only 22% measure online transaction speeds.

One of the most notable findings in our research this year is the rise of AI sales assistants. Usage has jumped 48% year-over-year, and 36% of respondents have used it for shopping at some point. This climbs to 57% for Gen Z. 

So what’s the appeal? For many, it’s about quickly cutting through the digital noise. 

Despite this, 45% of shoppers are on the fence. While they understand its usefulness in recommending products, some are worried about its potential for fraud. 

The challenge for retailers will be to use AI in a way that feels helpful while respecting privacy.

One thing is clear: Shoppers like discounts. And more than half are willing to share their data to get them. Yet many loyalty programs fall short. They can be complicated to manage and lack personalization. 

From retailers’ perspective, personalization is one of the top five growth strategies for 2025. While over 39% have a loyalty program, another 29% plan to invest this year.

Shoppers today aren’t just looking for good deals; they also care about what brands stand for.

Nearly half say they’d be more loyal to a retailer that shows a strong social purpose or supports charitable causes. In fact, 44% of Millennials and Gen Z will pay more for ethically sourced products compared to  25% of Boomers.

Retailers are starting to catch on, albeit slowly. Only a quarter enable donations online, and 28% in-store, but 26% plan to invest in social causes in 2025.

New innovations will always emerge, but shopper priorities remain the same: convenience, value, and entertainment.

The right tech partners will allow you to streamline your checkouts and connect your systems so that data flows freely across channels. That’s how you deliver the seamless experiences customers expect—anywhere.

For more data and demographic breakdowns, read the full retail trends report.