From upscaling self-checkout to increasing AI adoption, 2024 was a whirlwind year for retail technology. That pace isn't slowing down. As retailers settle into the new year, priorities need to be re-evaluated to keep up with an evolving landscape. Here are four key considerations for retailers as they set their 2025 strategy.
The shift to social commerce
Social commerce, buying and selling directly through social platforms, keeps growing. Purchases made via social media in the UK are expected to nearly double, from £7.4 billion to almost £16 billion, by 2028, and 56% of UK users have already made a purchase directly through a social platform.
TikTok Shop, launched in the UK in 2021, illustrates the scale of that shift: over 200,000 active businesses now sell through it, and 61% of TikTok users have made a purchase either on the app or online after seeing a TikTok ad. Retailers should consider prioritizing their presence on social channels and pairing products with engaging content. Social commerce is shaping up to be a meaningful part of omnichannel sales in 2025.
Creating diverse payment options
Offering multiple payment methods used to be a competitive edge. Now it's a baseline expectation. Around 50% of UK adults (roughly 26.4 million people) use Buy Now Pay Later. Options like pay-by-link simplify transactions further. Teamwork Commerce's Pay-By-Link solution lets shoppers pay through a secure URL and lets retailers process returns without a receipt, streamlining the process on both sides.
Strengthening omnichannel offerings
Customers have embraced hybrid shopping, and that's only set to grow in 2025. Buy-Online-Pick-Up-In-Store (BOPIS) and Buy-Online-Return-In-Store (BORIS) are forecast to surpass £30 billion in the UK in 2025 alone. Meeting that demand requires a holistic approach, eliminating friction between channels is only possible with integrated retail solutions that operate in real time.
AI integration
AI adoption in retail keeps climbing. Retail companies saw double-digit sales growth in both 2023 and 2024 tied to AI adoption, and that trend is expected to continue into 2025 across the supply chain and customer experience alike. But AI is only as good as the data behind it. Brands should consider pairing AI with technologies like RFID and other real-time systems that keep that data accurate and current.
The takeaway
As retailers plan their 2025 strategies, social commerce, new payment methods, omnichannel, and AI all deserve a place on the priority list. Brands that push further on these fronts, rather than treating them as boxes already checked, are best positioned to meet evolving consumer needs this year.