Our Top Trend Predictions for Retail in 2025

It’s human nature to know what’s coming next, so once again, the Webloyalty team have shared their predictions on what they believe will be some of the biggest retail trends in 2025. 

1

Retail Media Investment is on the Rise

Dominic West Webloyalty
Retail Media is on fire, and 2025 is shaping up to be its breakout year. The numbers are staggering. The IAB predicts UK advertisers will pour over £1 billion into on-and off-site Retail Media (excluding Amazon). Bring Amazon into the picture, and we’re looking at a jaw-dropping £7 billion by 2028. For context? That’s nearly on par with the £7.5 billion currently spent on social display ads in the UK. Globally, eMarketer projects retail media spending will soar to $166 billion next year. Few industries can dream of growing at this pace.

Well, this boom reflects a more profound evolution in how commerce and advertising intersect. Retailers are emerging as media giants, leveraging their treasure trove of first-party data to offer precision targeting that traditional channels struggle to match. Meanwhile, brands are increasingly aligning their ad budgets with platforms that combine relevance with measurable ROI. Retailers are rewriting the rules, challenging the likes of social giants, and creating ad experiences that feel less like marketing and more like service.

Dominic West – Managing Director, Northern Europe

2

The Growing Influencer Influence?

Hiten Patel WebloyaltyBy 2025, influencers will play an even bigger role in retail, moving beyond simple endorsements to driving instant purchasing decisions directly from your social feed. In 2024, 78% of UK consumers trust influencer recommendations over traditional ads, a good sign of the growing value of authenticity. Far from feeling intrusive, these ads will feel like curated recommendations perfectly tailored to individual preferences.

Shoppers increasingly trust influencers as relatable voices who bridge the gap between discovery and purchase, and their power is the process of humanizing brands and making products feel accessible and desirable. Social platforms are becoming digital storefronts, with influencers as the trendsetters sparking “add-to-cart” moments in real time. Step by step, people will actively seek out these tailored ads, making influencers more influential than ever. Brands that embrace this shift will thrive in a retail landscape driven by immediacy, relevance, and trust.

Hiten Patel – Senior Manager, Communications and Reputation

3

Unexpected Collaborations in Marketing

Retailers understand now that the future is not built on isolated visibility. In fact, it is crafted through partnerships that drive shared value, unlock more profound insights, and elevate the consumer experience. Collaborative marketing campaigns are evolving beyond traditional co-branding into data-driven partnerships that yield powerful consumer insights.  Brands are getting smarter—and more human—about meeting consumer needs.  One great example is Deliveroo’s latest move, literally turning heads. Partnering with Hurr, the fashion rental service, they’ve made it possible to get designer outfits delivered to your door in under an hour if you’re in central London. It’s high-end fashion, instantly accessible, and perfect for those moments when you need to look the part but don’t want a long-term commitment. Mango, on the other hand, chose to celebrate its 40th anniversary in style. Teaming up with Victoria Beckham, they’ve created a collection that blends Beckham’s iconic design flair with Mango’s signature approachability.

Other retailers are sure to take notes—and quickly jump on the creativity bandwagon in 2025. We have all witnessed how a co-branded campaign amplifies visibility and signals credibility and relevance, creating a halo effect that elevates the reputations of all involved. The result is so much more than just a campaign: it is a movement, one that builds trust and emotional connection. The strongest brands of tomorrow will be those who recognise that growth doesn’t come from standing alone but from standing together.

 

Silvia Carrera – Senior Manager, Reputation, Spain

4

Retailers Launching Their Own Marketplaces

Retailer-owned marketplaces leverage the most valuable currency of our time: information. Since the retailers have started to gain a monopoly over their own media & customer networks, retailers gain unparalleled access to first-party consumer data.  It reveals what people buy and why they buy it, how they make decisions, and what drives their loyalty. In fact, these platforms become spaces where brands, armed with data-driven insights, can craft stories that resonate with consumers in real time. Plus, retailer-owned marketplaces thrive on their ability to adapt quickly. They give brands the flexibility to test new trends and categories without the logistical complexities of physical inventory. Superdrug’s marketplace, launched in 2022, is a prime example of how a retailer can leverage its platform to expand beyond its core offering. It features over 22,000 products and blends third-party items with Superdrug’s traditional stock, enabling the brand to venture into categories like fashion and seasonal products, including Halloween costumes.

This flexibility has driven record-breaking sales weeks and kept the brand on track for ambitious growth targets. Once struggling, Debenhams is now the UK’s largest marketplace for fashion, beauty, sport, and homeware, offering over 3,500 brands— expanded its e-commerce capabilities to serve customers in over 200 markets worldwide better. So far, this focus has yielded great results, as customer sentiment is positive concerning the UK’s top retail brands, with 3 in 4 customers expressing satisfaction with their retail experience.

 Dhruve Patel – Senior Manager, Affiliate Marketing

5

Multi-Source Revenue Stream Expansion

Retail has always been and will continue to be an industry of reinvention. By 2025, the idea of a single revenue stream—be it product sales, subscriptions, or services—will feel antiquated. Forward-thinking companies will fully embrace the transformation of existing assets into multi-purpose ecosystems, paving the way for scalable, future-proof growth. The cost-of-living crisis in the UK has forced retailers to rethink their revenue models. The approach is bold, deliberate, and built to scale. Expanding beyond traditional retail sales, businesses are entering new markets, such as luxury resale and subscription services, both projected to grow by over 20% annually in 2024 (Deloitte, 2024).

Leading businesses have started transforming their platforms into ecosystems that do far more than their original purpose, and more retailers will continue to do so. Advertising integrations redefine how platforms generate value (Webloyalty, 2024). Via embedding features like sponsored listings or targeted in-app placements, companies create a seamless experience for users while unlocking consistent, scalable revenue streams. Even more, retail spaces are no longer just transactional. They’re evolving into immersive, multi-revenue channels. Blending commerce with events, hospitality, and memberships, transforming a static storefront into a dynamic, experience-driven hub.  So, for consumers, the question will no longer be, “What can I buy here?” but “What can I experience here?

 

Luke Robinson – Senior Business Development Manager

6

Social Commerce and Mobile App Development

Thomas Grace WebloyaltySocial commerce in the UK is on an upward trajectory, yet it remains in its early stages compared to markets like China and the US. By 2030, it is anticipated that the social commerce market in the UK will generate a projected revenue of US$ 174.9 million, up from $30 million in 2024 and with a stellar CAGR of almost 30% per year. So, in 2025, this subsector is expected to move from its nascent stage towards the status of a mainstream force in retail, bridging the gap between entertainment and purchasing. Integrating shopping experiences within social media platforms increasingly influences consumer behaviour, especially among Gen Z and young millennials.  

The rise of platforms like TikTok Shop has already laid the groundwork. Launched in 2021, TikTok Shop is one of the most popular social commerce hubs that allows users to purchase products directly through videos and live broadcasts, with over 200,000 businesses now actively selling on the platform. Prominent brands like L’Oreal and Sweaty Betty are among the users. TikTok has managed to merge entertainment with shopping in an organic way, making it not just a place to watch content but also to buy what catches your eye in real time.

Trust in creators will also continue to be a driving force of social commerce in 2025. The young demographics trust creators on social media more than traditional advertisements and celebrities. 79% of Gen Z’s shopping originates from social media, with 75% making purchases online from creator recommendations. Instead of being interrupted by ads, young consumers are choosing to shop through content they already enjoy and trust. Most definitely, we are witnessing a broader cultural change in how we view shopping—not as a transactional process but as an extension of the content we consume daily.

 Thomas Grâce – Retention Specialist

7

AI-Driven Personalization : Revolutionizing the Retail Experience



One-size-fits-all promotions are quickly losing their appeal in the retail landscape. Today’s customers expect brands to understand their preferences, anticipate their needs, and offer personalized experiences. We have all witnessed how AI drives this shift, enabling retailers to deliver tailored offers, curated recommendations, and seamless digital interactions that feel meaningful and relevant.

From dynamic marketing campaigns that resonate with specific audiences to virtual assistants that guide shoppers with precision, AI is transforming every touchpoint of the customer journey. In 2024, more than half – 54% – of retail marketers have been relying on AI-powered personalization across channels, highlighting its role as a critical driver of growth and a cornerstone of modern retail strategies. Naturally, we will see more and more in 2025 following this path! Through analysing data such as browsing behaviour, purchase history, and even real-time engagement, AI creates a shopping experience that feels intuitive and personal—almost as if the brand knows the customer on an individual level.

But it is so much more than just convenience…. In fact, it is mostly about connection. Personalized recommendations, exclusive offers, and targeted campaigns show customers they’re valued, fostering trust and brand loyalty. These moments of personalization create stronger emotional ties, turning occasional shoppers into long-term advocates. For sure, AI will keep redefining the way retailers engage with their audiences.

Abbi Lewis – Senior Affiliate Executive

8

Retail Consolidation and Empire Building

Next year, I foresee a major shift toward consolidation and empire-building across the retail sector. Economic pressures, amplified by the latest budget constraints, are forcing many retailers into precarious positions, leaving valuable assets ripe for acquisition. This environment sets the stage for strategic players to seize opportunities, snapping up brands, stores, and infrastructure at deeply discounted prices. It’s a moment of transformation, where the strongest will grow stronger, and the weaker will either fold or become part of larger conglomerates.

The tug-of-war between Boohoo Group and Frasers is one of the most compelling narratives in this space. Mike Ashley’s relentless pursuit of growth, paired with Boohoo’s aggressive strategy in e-commerce, sets the tone for a high-stakes game of acquisitions. With its evolving portfolio of brands and strategic bets, Frasers Group is emerging as a retail powerhouse. Watching how Ashley expands the empire—likely with more surprise acquisitions—will be a fascinating indicator of the industry’s direction.

In reality, this goes beyond Frasers or Boohoo. Retail as a whole is entering a period of recalibration, where consolidation surpasses the survival stage and reaches dominance. The players with deep pockets and bold strategies will thrive, reshaping the competitive landscape and redefining what it means to succeed.

Richard Piper – Senior Director, Business Development

9

Authenticity – The Keyword of 2025


Consumers today are more discerning than ever, seeking out brands that resonate with their values and speak with genuine authenticity. In 2023, only 64% of UK consumers identified themselves as loyal to specific retailers, brands, or stores—a noticeable drop from 73% the previous year. Over the past year, a storm of economic and political challenges has left people weary of superficial messaging. As a result, they are tuning out the noise and gravitating toward brands that feel real, grounded, and aligned with what matters most to them.

Authenticity is the keyword for 2025. After all, it is the foundation of trust: people want to see brands take meaningful actions, tell honest stories, and how they stand for something beyond profit. Delivering quality products or services is just the starting point. It’s the deeper connection—built through purpose and consistent, transparent communication—that drives loyalty.

Yet, this shift is not without its challenges. Brands that rely on performative gestures or vague messaging risk losing relevance. On the flip side, those who prioritize clear, human communication and live up to their promises will thrive. Consumers are looking for more than a transactional relationship… They want to feel seen, heard, and understood.

Nicola Slyper – Interim Partnerships Director  

10

Prioritizing Consumer Experience


Retailers have already started to move beyond simply selling products online to creating immersive, personalised, and frictionless journeys, both online and in-person. For physical stores, the focus is on creating more engaging, efficient, and accessible environments. Curry’s has led the way in the UK with an ambitious plan to transform 65 stores. These updates will overhaul 90% of their existing space to showcase a wider range of tech products and make the store layouts more customer-friendly. On the digital front, the iconic department store Harrods is one example of a brand embracing this evolution. Partnering with Global-e, Harrods has expanded its e-commerce capabilities to serve customers in over 200 markets worldwide better. So far, this focus has yielded great results, as customer sentiment is positive concerning the UK’s top retail brands, with 3 in 4 customers expressing satisfaction with their retail experience.

Madelyn Norman-Crowther – Communications and Reputations Executive

Key Takeaways

  • Economic pressures are fuelling company acquisitions, further contributing to empire building and retail consolidation.  
  • Retailers are continuing to diversify their revenue streams – with 75% of UK customers responding positively to platforms hosting more advertising integrations and spaces embracing memberships, as well as utilisation for events.  
  • Retail Media Investment is on the rise, with retailers continuing to leverage first party data, resulting in more measurable ROI.  
  • UK social commerce is projected to grow from £24m ($30m) to £116m ($147.9m) by 2030 – further contributing to the importance of brands utilising social platforms such as Tik Tok to merge one seamless experience of content consumption and shopping in one – especially for younger generations like Gen Z. 
  • Influencers are a driving force in purchasing decisions, with 78% of consumers in the UK putting their trust in them over traditional forms of advertising. 
  • Brands must prioritize authenticity and transparency, as well as customer experience – as customer loyalty towards companies overall has dropped this year. 
  • Artificial intelligence is helping to leverage improved ad targeting that is more personal and therefor, more favourable to online shoppers. 

Stay up to date with more exciting content on retail and the Retail Media space as we’ll be sharing more insightful articles through our blog here and on our social media channels next year.