Recently shopping has not only been the activity of buying items at shops anymore. Technology now enhances your shopping experience, tracking your journey from the moment you enter the store, through your order placement, to the final delivery. These technologies improve the quality of consumer shopping experiences.
In 2025, some specific trends in technology are expected to define the retail industry. This article will discuss 9 popular retail tech trends, along with some examples. Based on the information read in this blog, you can learn how the retail world is going and prepare for your business.
Personalized Shopping with AI
Modern shoppers want more than just shopping—they want a personalized experience. According to a Deloitte Digital study, 69% of buyers will likely buy from brands that personalize their purchasing experience. To meet customers' needs, retailers increasingly use artificial intelligence (AI) to deliver data to personalize shopping experiences.
How does AI achieve this personalization?
- Product Recommendations: AI uses customers' browsing and purchasing history to recommend suitable products. It looks like a virtual personal shopper that understands exactly what you want.
- Custom Ads: This ensures the promotions you see are relevant to your needs and more likely to grab your attention.
When you buy a new phone at Amazon, they usually suggest suitable phone cases, chargers, screen guards, or similar products – all from the same brand or segment to your product. This makes it possible for a customer to look for products that are related to one they just bought.
Demand Forecasting By AI & ML
Today, retailers cannot rely on their intuition or previous sales and market trends to identify bestseller items and future-demanding products. Demand forecasting is improving with the help of AI and machine learning. This system utilizes sales trends, weather, and social media data to predict buyer preferences in the market.
In detail, this technology allows retailers to:
- Optimize Inventory: Avoid stockouts and waste by stocking the appropriate products at the right time.
- Lower Costs: Inventory management decreases storage costs and losses from unsold goods.
- Increase Efficiency: Streamline the supply chain to ensure on-time delivery.
The impact is significant. According to McKinsey Digital, AI-enhanced forecasting reduces errors in supply chain networks by 30 to 50%. This increased accuracy leads to a substantial drop – up to 65% – in lost sales due to out-of-stock situations.
Omnichannel Retailing
Omnichannel technology in retail stores creates a seamless shopping experience by connecting online and offline interactions. Customers can enjoy a consistent journey across touchpoints, whether browsing products online, checking in-store availability, or choosing home delivery or in-store pickup.
This technology includes:
- Real-Time Inventory Updates: Customers always know what's in stock and where by synchronizing local and online inventories.
- Integrated Customer Data: Data analytics and AI help retailers personalize recommendations and interactions on websites, mobile apps, and in stores.
- Convenient Purchase Options: “Buy Online, Pick Up In Store” (BOPIS) and curbside pickup methods make purchasing easier and faster.
Walmart and Target are firms benefiting from omnichannel strategy. They let people shop seamlessly across mobile apps, websites, and shops. For example, you could add your favorite items on your phone during your commute to the cart and then seamlessly complete your purchase in-store later that day. That's omnichannel excellence!
(Source: Canva)
Virtual Try-Ons with AR
In the COVID-19 period, when physical stores closed or opened limitedly, virtual try-ons emerged as a solution to let customers know how the products look or fit in real life. For instance, you can visualize a sofa in your living room through your smartphone or try makeup digitally to find your ideal shade. This eliminates the uncertainty of buying products online since the customers are known with better information.
According to the Virtual Try-On Technology Global Market Report, this technology market is growing exponentially to reach $9.59 billion in 2024, with a compound annual growth rate (CAGR) of 26.6%. This growth is rising consumer interest in personalized, contactless shopping experiences.
>> Read more: A Guide To AR & VR App Development For Businesses
Smart Shelves and Inventory with IoT
Smart shelves are changing retail inventory management using the Internet of Things (IoT). These smart shelves track stock levels in real time to ensure that products are always available for customers.
When stock gets low, alerts are sent to store staff so that items can be restocked quickly. This prevents sales from being lost and makes the customer experience better. This technology not only improves the customer experience but also helps Walmart optimize their supply chain and reduce operational costs.
>> Read more:
- IoT App Development: How To Create An IoT Application?
- 10 Best IoT App Development Companies in Vietnam
Digital Price Tags
ESL and IoT-backed digital price tags are the future of price management for products across the retail sector. These electronic tags are flexible and efficient because they can be reprogrammed remotely and in real-time, thereby minimizing staff involvement in managing the shelf product prices.
Outstanding benefits of digital price tags include:
- Instant Price Changes: Retailers can instantly modify prices across all locations to adapt to market changes and rival pricing.
- Improved Accuracy and Efficiency: Automation reduces human error and time spent on manual price changes.
Blockchain for Transparent Supply Chains
Supply chains are complex networks where companies collaborate to add value to products or services before reaching the end consumer. Blockchain enables seamless data exchange and validation across these networks. In other words, blockchain is finding a new way in retail innovations: creating transparent and secure supply chains.
Using IoT and AI, the blockchain can store real-time product location and sensor condition data. For example, some global retailers are using blockchain technology to track fresh produce from farm to shop in seconds. This traceability speeds up contamination source detection, improving safety and consumer trust.
>> Read more:
- Top 6 Best Supply Chain Management Software
- No-Code And Low-Code Solutions In Logistics And Supply Chain
- An Ultimate Guide for Logistics App Development
Advanced Payment Options
Modern payment technologies are reshaping how consumers complete transactions, making them faster, safer, and more convenient. Retailers increasingly adopt biometric payments and mobile wallets to create seamless checkout experiences, catering to the growing demand for cashless solutions.
According to a study by PwC Research, we're seeing a global surge in cashless payments, with predictions showing an 80% increase in volume by 2025. Digital wallets like Apple Pay and Google Pay are becoming increasingly ubiquitous, offering a streamlined payment experience that consumers of all ages are embracing.
Voice E-commerce
Voice shopping is quickly becoming a useful way to buy things. Voice assistants for mobile apps like Alexa, Google Assistant, and Siri are used to make smooth purchases. Meanwhile, NLP and speech recognition innovations make interactions easier with this breakthrough.
This tech trend makes it convenient for customers to save time for locating a certain product or typing. According to Statistics, it shows that 22% of consumers make direct purchases using voice assistants, and 71% prefer voice commands for online searches.
>> Read more:
- Top Mobile App Development Trends for 2025
- 6 Healthcare Technology Trends and Innovations 2025
- Top Frontend Technologies and Development Trends in 2025
Conclusion
Technology is going to remain very significant in the retail industry. Such retail tech trends as personalized AI, blockchain, etc., are foundations of how people will go shopping in the future. The application of these technologies should enable organizations to operate more effectively and thereby foster long-term customer confidence in a dynamic market.
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