Five Retail Technology Trends to Watch In 2025 | Thursday Bytes [Video]

Five Retail Technology Trends to Watch In 2025

2025 is set to introduce exciting retail innovations powered by AI, AR/VR, omnichannel strategies, data analytics, and sustainability.

5 ways you can stay ahead of your competition:

1️⃣ AI And GenAI Will to Enhance Processes

• The global retail AI market will grow from $11.83B in 2024 to $54.92B by 2033 – Precedence Research.
• AI boosts hyper-personalized shopping through GenAI-driven chatbots and in-store tech.
• Example: Walmart uses GenAI to enhance its product catalog and create AI-powered shopping assistants for customers.
• Key Takeaway: Utilize AI insights for predictive inventory and personalized customer interactions across digital and physical platforms.

2️⃣ AR and VR to Deliver Immersive Experiences

• AR in retail is expected to reach $61.3B by 2031 – Allied Market Research.
• Metaverse revenue could grow from $47.48B in 2022 to $678.8B by 2030 -Shopify.
• AR/VR allows customers to virtually try on products and experience brands through gamification and metaverse platforms.
• Example: IKEA and SEPHORA provide AR features for virtual try-ons and room visualizations.
• Key Takeaway: Invest in immersive AR/VR tools to foster loyalty and engage Gen Z with innovative experiences.

3️⃣ Omnichannel Integration to Provide a Complete Shopping Experience

• 23% of retail purchases are expected to be online by 2027 – Forbes.
• 53% of Gen Z prefer in-person purchases for essentials like apparel – Prosper Insights & Analytics.
• Blend digital and physical shopping for consistent customer experiences.
• Example: Retailers adopting “phygital” stores enhance convenience.
• Key Takeaway: Leverage AI for data integration, ensuring tailored customer journeys across platforms.

4️⃣ Big Data Analytics and Retail Analytics to Drive Data-driven Decisions

• The retail analytics market is forecasted to grow from $9.1B in 2024 to $63.1B by 2034 – Research and Markets.
• Predictive analytics optimizes stock levels and supply chain functionalities.
• Example: Retailers use analytics to improve return logistics.
• Key Takeaway: Use real-time analytics to monitor customer behavior and refine marketing strategies.

5️⃣ Sustainable Shopping to Become the Norm

• 79% of consumers prefer products with sustainable packaging – Trivium Packaging.
• Eco-friendly practices drive customer loyalty and reduce environmental impact.
• Example: Unilever integrates sustainability metrics and on-demand manufacturing to reduce waste.
• Key Takeaway: Adopt circular economy practices like recycling to attract eco-conscious shoppers.

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