With the countdown to the New Year just around the corner, 2024 appears to have shot by. It hasn't been a quiet year for the retail world. So far, 2024 has seen a number of brands exploring new and innovative solutions, catering to evolving consumer preferences, and adjusting to changing trends. From AI and RFID to self-checkout kiosks and mobile POS solutions, a number of innovative technologies made significant waves throughout the year. Here are the key trends that shaped the UK retail industry in 2024.
AI and excelling sales
AI has been a key tool in helping retailers streamline and create personalized shopping experiences for customers. Many global brands, such as Amazon, have introduced AI to analyze product attributes and customer shopping information through search, browsing, and purchase history.
Skincare brand Dove saw a 7% higher purchasing intent through providing AI tools to customers. One of its three new AI tools, BeautyHub PRO, offers product advice for both skincare and haircare on one engaging online platform, helping consumers find products for their specific needs while driving growth for the brand's beauty portfolio. The same Dove report revealed that 43% of consumers are more likely to complete a purchase after utilizing the BeautyHub PRO tool. AI allows brands to provide personalized product recommendations and exclusive deals that entice customers and optimize sales opportunities.
The rise in speedy shopping
2024 also saw a rise in consumer appetite for speedy shopping experiences. Features such as same-day delivery and express checkouts are becoming ingrained behaviors for shoppers on the go. According to Statista, in 2023 nearly two-thirds of global shoppers anticipated receiving their items within 24 hours, and that demand for speed only continued in 2024.
To keep up with demand, supermarket chains such as Co-op introduced a 24-hour rapid delivery service. The impact of customers wanting a speedier shopping experience is also making its way into stores: Sainsbury's introduced a mobile point of sale system that allows staff to approve transactions via tablet, now rolled out to over 22,500 checkouts across the country, speeding up the checkout process and boosting the consumer experience.
Entertaining experiences: a 2024 priority
Throughout 2024, many brands looked outside the box to create engaging and innovative retail journeys for customers. IKEA launched a collaboration with Roblox to open its first virtual store within the game, letting fans live out their home-furnishing dreams virtually. Beauty brand Benefit launched a 3D shopping experience available across the United States, United Kingdom, Germany, and France, letting shoppers add Benefit sets to their digital cart and virtually try on products.
As retailers progress into 2025, innovative ways to create exciting experiences for customers will be key to building brand loyalty and keeping up with consumer demand.
The balancing act of self-checkout
Self-checkout solutions have been a hot topic throughout 2024. While some retailers have questioned its ability to ensure high-quality customer experiences, others have credited the tech with boosting efficiency. Clothing brand Primark, first mentioning self-checkout in 2022, has continued rolling out self-checkout terminals across the UK, reaching 75 stores to date and enabling expansion into click-and-collect. To allow in-store associates to use their time more effectively during peak shopping periods, M&S recently announced its decision to deploy self-checkouts in changing room areas, with plans to install over 100 self-checkout kiosks by 2028.
What's on the cards for 2025?
For retailers, it has been a year of learning and adapting. With technology deployment now one of the most important factors of any in-store experience, it is clear the UK retail scene recognizes the need to evolve with it. Moving into 2025, brands will be expected to bring new ideas to the table and build on innovative tools such as AI and RFID technology to ensure operations run smoothly and customers get the best service possible.