4 Key Considerations for Retailers in 2025

From upscaling self-checkout solutions to increasing integration of AI in retail, 2024 witnessed a whirlwind of transformative retail technology adoption. It was a busy year for retailers, and tech innovation and integration within the industry will only continue to grow as 2025 progresses.

As we settle into the new year, retailers need to re-evaluate their priorities to keep up with the evolving retail landscape. In this blog, we take a look at four key considerations for retailers as they set their 2025 priorities… 

The Shift to Social Commerce

Social commerce is the buying and selling of goods or services through social media platforms, and its popularity has continued to grow over the past couple of years. Purchases made within the UK using social media platforms are expected to double in value from £7.4 billion to almost £16 billion by 2028. According to forecasts, 56% of UK users have made a purchase directly through social media, via a link on shoppable content or through an app. Therefore, as part of their New Year priorities, retailers must consider capitalizing on the potential of social commerce.

Having only launched in the UK in 2021, TikTok Shop is just one platform among many that has excelled within the social commerce space. Since launching, there have been over 200,000 active businesses on TikTok Shop in the UK. This has heavily influenced shopping behaviour on social platforms with a reported 61% of TikTok users having made a purchase either directly on TikTok, or online after seeing an ad on TikTok. Not only does this demonstrate the rapid rise of TikTok Shop, but it also shows its ability to drive repeat sales and impact consumer shopping habits.

Due to TikTok shop’s success in driving sales, retailers should consider focusing their efforts on prioritising their presence on social channels such as TikTok, pairing products with engaging content creation. Social commerce is only expected to continue to grow in 2025. Brands appear to have found the key to streamlining social transactions, and it is translating into a significant amount of eCommerce sales. A successful social commerce strategy will add another string to the bow for retailers looking to deliver effective omnichannel sales.

Creating diverse payment options

Over recent years, the ability to provide customers with multiple payment options and methods has provided retailers with a competitive edge. Today’s consumers have unique and evolving needs, and they demand payment options that allow flexibility. Whether paying through a secure link, using Buy Now Pay Later (BNPL) options, or digital wallets such as Apple Pay and PayPal, shoppers are accustomed to completing purchases at their convenience. However, the industry has now reached a point where being able to offer diverse payment options isn’t an edge anymore, but a basic demand of customers that brands must cater to.

According to Statista, BNPL (buy now pay later) transactions within the UK are used by 50% (around 26.4 million) of adults. Meanwhile, options such as pay-by-link can simplify the transaction process for customers in-store. The Teamwork Commerce Pay-By-Link solution allows shoppers to pay for items through a secure URL link provided by a retailer. Retailers not only have the ability to conduct sales but can also process returns without the need for receipts – streamlining payment processes.  

Offering multiple payment systems can help brands deliver convenient shopping experiences, increasing shoppers’ likelihood of buying and returning. 

Strengthening omnichannel offerings

The ability to leverage multiple methods to make purchases has empowered customers to shop at their own convenience. Over recent years, customers have embraced hybrid shopping models and 2025 is only set to see further rise. 

The popularity of omnichannel retail offerings such as Buy-Online-Pick-Up-In-Store (BOPIS) and Buy-Online-Return-In-Store (BORIS) is growing. In the UK, these services are forecasted to surpass £30 billion in 2025. The growth of BOPIS and BORIS indicates that retailers must be ready to cater to the rising demand for omnichannel shopping experiences.

As part of their 2025 strategies, brands can prioritise adopting a holistic approach to simplify their omnichannel experiences. It is critical that retailers are able to eliminate friction and facilitate BOPIS and BORIS seamlessly, which is only possible with the deployment of integrated retail solutions that operate in real time.

AI integration

AI integration into retail operations has been on the rise. Both in 2023 and 2024, retail companies saw a two-digit growth of their sales compared to the respective previous years. In 2025, we anticipate that AI adoption in retail is only likely to increase further, transforming different areas – from supply chain operations to the customer experience.

From personalization to process optimization, brands must consider using AI to transform their retail operations in 2025. While AI is a game-changer in analyzing vast amounts of data, retailers must be able to feed accurate information for the technology to be able to deliver correct results. To achieve this, brands should consider pairing AI with other technologies such as RFID and real-time solutions that provide updated and accurate data.

The takeaway

As retailers plan their strategies for 2025, they must focus on popular trends such as social commerce, new payment methods, omnichannel and AI in their new year priorities. While many brands are already using some or all of these, those who can further advance in their utilisation of these can better cater to evolving consumer needs and thrive in 2025.

To find out more about how Teamwork Commerce can help your brand today in introducing retail technology to your everyday practices can help you succeed in 2025, visit here.