How the Retail Sector Will Attract, Engage, and Inform Customers in 2025

Customer experience (CX) has emerged as a key differentiator that can set retail brands apart from their competitors. In 2025, retailers are looking toward CX as a crucial factor in their strategy to win and retain customers. Retail consumers “connected” to a brand are 306% more valuable over their lifetime. Similarly, 86% of customers will pay more for a great brand experience. At the same time, 86% will switch to another brand after 2 bad shopping experiences.

Among the “surprising” retail trends, in-store shopping is making a comeback. Phygital shopping – or the hybrid version of online and in-store shopping – highlights how Gen-Z’s shopping behaviour differs from that of millennials. 

Going forward in 2025, AI adoption will continue to be strong. Statista reports that retailers using AI and machine learning technologies reported higher sales and profits between 2023 and 2024. According to Morgan Stanley, retailers can save between 5-10% of their corporate costs by using AI technology.

Here are 5 in-store retail CX trends that we can expect to see in 2025:

1. In-person shopping

As mentioned earlier, in-person shopping is making a comeback this season. 93% of retail consumers plan to do both in-person and online shopping this holiday season. 

Why are more consumers shopping in physical retail stores? For a start, online shopping does not provide them with the “human” connection that they crave. While retail chatbots are convenient, they cannot replace talking to the in-store sales executive. Further, consumers prefer the “feel and touch” of physical products before the purchase.

Additionally, the “buy local” trend is also driving in-store shopping as more consumers like to support the local small retail shops in their vicinity.

2. Hyper-personalization

Be it online or in-store shopping, customers now expect a personalized experience from their favourite retail brands. According to McKinsey, 71% of retail consumers expect a personalized brand experience, while 76% feel frustrated when they don’t get it. 61% of retail CMOs prioritize a personalized CX as the key to customer loyalty.

By combining AI with data analytics, retailers are hyper-personalizing the entire customer journey – based on their shopping habits and behaviours. For example, by using AI-powered predictive analytics, retailers can recommend relevant products (or exclusive offers) to customers based on their purchasing patterns.

3. Hybrid shopping

Among the latest trends, hybrid shopping is rising primarily due to the differences in shopping behaviours between Gen-Z and previous generations. While older consumers prefer in-store shopping, 74% of Zoomers prefer mobile shopping. At the same time, consumers across generations browse through multiple touchpoints to explore the latest products.

In 2025, retailers need an efficient omnichannel strategy that can unify multiple touchpoints including digital and physical channels. According to Deloitte, satisfied customers are 3.6x more likely to buy products from retailers delivering an omnichannel experience.

4. Sustainability

The 2020 pandemic accelerated the global demand for eco-friendly and sustainable products in the retail space. In 2025, sustainability will move from being an “industry trend” to a “deal breaker” for modern consumers. 60% of millennial consumers are willing to pay more for sustainable products. Zoomers are willing to pay up to 50-100% additional for sustainable products. 

It’s not simply eco-friendly products – consumers are also preferring environmentally conscious retail brands. Modern consumers are seeking out brands that are firmly committed to sustainability. In 2025, retailers will need a forward-looking strategy that focuses on sustainable practices like recycling and repurposing.

5. Brand trust and business transparency

Brand trust and transparency are a crucial part of the customer experience in the retail landscape. Over 60% of Zoomers follow retail brands on social media platforms, while an authentic brand is important for 34% of Gen-Z consumers (compared to 24% for other generations).

Similarly, consumers prefer brands that share information about product ingredients, manufacturing processes, and supply chains. Successful retailers are building brand trust and transparency by sharing user-generated content including customer reviews or testimonials. This is far more effective in influencing purchasing decisions than traditional sales pitches or marketing campaigns.

How AV technologies can elevate the CX in retail

In the competitive retail industry,  audiovisual (AV) technologies can transform CX in physical “brick and mortar” stores. By improving the visual appeal of their stores, retailers can use AV solutions to boost customer engagement and brand appeal.

For instance, well-designed digital signage can provide valuable product information to in-store customers and help them easily locate their products. Further, digital signages serve as communication tools for retailers to:

• Promote new or eco-friendly products to capture the customer’s attention.
• Entertain customers on the check-out queue with social media feeds and videos.

With digital kiosks in physical stores, retailers can also encourage customers to spend more time in the store and interact digitally with the brands. Small retailers can deliver a personalized shopping experience through interactive displays that showcase their favourite products.

Retailers can also program digital signages to advertise specific products based on factors like:

• Target audience’s demographics
• Time of the day – or the day of the week

For example, advanced digital signages can personalize their customer greeting when they enter the store – or even recommend a product based on their previous purchase or shopping behaviour.

Similarly, AV solutions like interactive displays are transforming customer experience centres that customers visit to receive product support or service. For instance, virtual reality (VR) technology in retail CX centres can transform the customer’s brand perception through an immersive experience.

Conclusion

Even as online sales continue to grow in the retail space, modern retailers cannot ignore the importance of the in-store shopping experience. As modern consumers demand personalization and sustainable models, retailers can adopt a variety of AV solutions to boost their in-store customer experience.

Specialized in a variety of AV solutions, Resurgent is working with leading retailers to improve their customer experience. Our portfolio of AV solutions includes:

• Digital signages
• Interactive displays
• Digital kiosks

And much more. If you want to transform your CX, book a free consultation today.