Retail is a dynamic field, driven by rapidly changing consumer behaviors, rapid technology advancement, and rising demand for sustainability and convenience. With global retail sales passing $30 trillion in 2024, and retail ecommerce likely to reach $7.4 trillion by 2025, the industry offers huge opportunities to businesses ready to adapt and innovate.
At a recent Synder webinar entitled Financial Forecast: Retail Growth Trends 2024 vs. 2025, we shared expert insights regarding the major trends currently changing the retail world and delivered practical strategies for businesses to thrive.
Meet the guest speaker
Katherine Scardaville is the founder and CEO of Equilibrium Consultant, a firm that helps creative small business owners in the construction and manufacturing industries improve profitability and operational clarity. She’s also the Chief Financial Advisor at Modern Drummer Publications Incorporated. Katherine enables business owners to focus on the core of their operations, reduce their level of stress, and increase their income.
Below are some of the important retail trends Katherine spoke about during the webinar, along with some actionable insights to help businesses stay ahead of the curve.
1. Omnichannel excellence
Omnichannel retail is no longer a buzzword but a necessity for businesses looking to meet consumer expectations. Katherine said, “If you’re not going to jump on the AI train, you might be left behind in the dust,” which is why “a lot of retailers now…merge their online stores with their brick-and-mortar stores,” creating a seamless integration of physical and digital shopping experiences, or what she called “phygital.”
Such integration offers the retailer the ability to meet the customer wherever they are, with flexibility and convenience. For example, Target’s VIP-style curbside pickup not only makes for a seamless shopping experience but also lets customers feel special by offering them a service that recognizes their time and needs. Similarly, Nordstrom’s “Reserve and Try” feature bridges the gap between online browsing and in-store shopping, where customers can reserve a try-on in-store and then finish the purchase decision with minimal fuss.
Smaller retailers also leverage omnichannel strategies by offering services such as buy online, pick up in-store (BOPIS), virtual consultations, and in-store kiosks that link directly with their online inventory. Those tactics not only raise the level of customer experience but also provide insights into shopping behaviors across channels, enabling much more targeted marketing and inventory management.
Overall, omnichannel excellence offers the possibility of creating a flawless and personalized shopping experience driven by customer loyalty and acts as a differentiator that ensures competitive advantage in today’s increasingly digitally-driven retail marketplaces.
2. Sustainability as a differentiator
According to Katherine, sustainability is invaluable to the new consumer. It’s particularly true for Millennials and Gen Z, who often consider sustainability when deciding on a purchase.
For instance, Patagonia’s Worn Wear program not only supports recycling but also extends the life cycle of their products, therefore reducing the demand for new materials and easing the environmental impact of production. The program allows customers to trade in used gear for store credit, after which the product is repaired and put up for reselling in a circular economy model most apt for the eco-conscious buyer.
Businesses adopting circular business models can attract eco-conscious consumers and differentiate their brands in the crowded market. By integrating sustainability into their operations and marketing strategies, companies will not only be able to build trust but also establish long-term customer loyalty.
3. Hyper-personalization through AI
The rise of artificial intelligence has changed the way businesses interact with customers, enabling hyper-personalized experiences. “AI now predicts what you probably want…like your mom or dad making you dinner,” Katherine explained. AI technology empowers retailers to analyze customer data and then tailor their offerings accordingly, creating a shopping experience that feels intuitive and personal.
For instance, Starbucks uses AI to predict customer preferences for coffee, and fashion retailers curate looks based on the individual’s style preferences; in a sense, becoming personal stylists. Such experiences create deeper connections with customers and keep them coming back for more.
AI also empowers retailers in several other ways:
- Dynamic pricing strategies: AI helps retailers adjust prices in real time based on demand, competition, and customer behavior to maximize revenue while remaining competitive.
- Inventory management: With the ability to predict demand patterns, AI reduces stockouts and overstock situations, making the right products available at the right time.
- Visual search technology: It’s the AI that enables customers to conduct a search using pictures of a product, thus easily finding what they want without having to rely on text-based queries.
- Fraud detection and prevention: AI finds irregular patterns in transactions to identify and stop fraudulent activities, saving both businesses and their customers.
- Customer support: AI-powered chatbots and virtual assistants can help answer frequent queries by customers immediately, 24/7, thus easing the workload of human teams and improving customer satisfaction.
- Predictive analytics: Analyzing past behaviors and trends, AI foresees future sales, customer preferences, and market shifts in order for the retailer to make informed business decisions.
- In-store experiences: AI powers smart mirrors and augmented reality tools, allowing customers to try on products virtually and enhancing the shopping experience.
- Supply chain optimization: AI may help smooth supply chain operations, reduce delays, and improve delivery times since it forecasts demand and optimizes logistics.
With such AI abilities, retailers could indeed create customer satisfaction by building strong customer loyalty that leads to economic growth amidst fierce market competitiveness.
4. Experiential retail and subscription models
In an age where experiences often count for more than products, retailers are having to reinvent how they connect with customers. “Ikea combines shopping with full sensory experiences. You shop, you eat the meatballs, and you dream of minimalist bliss,” Katherine shared, showing the power of experiential retail.
Through creating memorable, immersive experiences, companies will be able to differentiate themselves and be etched in the memories of their customers—be it through in-store events, interactive product demonstrations, or even using technologies such as virtual reality, allowing customers to virtually see a product in their own space before buying. The shopping experience becomes an event rather than a dull activity.
Another good way to keep customers coming back is subscription models. Companies like HelloFresh make life easier with curated, recurring boxes delivered to the doorstep, keeping customers hooked month on month.
Subscription offerings have gone beyond meal kits—industries like beauty (e.g., Birchbox), fitness (e.g., Peloton memberships), and even pet supplies (e.g., BarkBox) are thriving on the subscription model. First, these cater to personalization and convenience with a view to making their customers feel looked after while also saving them from repetitive buying decisions.
By fusing the immersive appeal of experiential retail with the ease of subscription models, companies may develop a multi-dimensional plan for capturing customers’ attention and fostering loyalty over the long term. It’s about bringing real value and making connections that last beyond the transactional to ensure the customer comes back for more of the product and experience.
5. Leveraging Synder for retail success
Effective financial management is a must for retail success, and tools like Synder can make all the difference. “Synder is a partner as far as allocating all of your chart of accounts with your store,” Katherine explained.
Synder is a strong accounting tool that helps simplify complex financial workflows of businesses, allowing them to focus more on growth and strategic initiatives rather than endless manual tasks. With Synder’s automation of accounting processes, retailers can easily stay on top of their finances and maintain accuracy in all sales channels.
Core features and benefits of Synder
- Seamless data allocation: Synder automatically allocates financial transactions into proper accounts, reducing the chances of errors and saving manual adjustments. It combines all transactions coming via more than 30 channels—like eBay or Amazon—and payment platforms—like PayPa or Stripe—into one batch (with Summary Sync mode), or gives you granularity with detailed info for each transaction (with Per Transaction mode), in order to simplify reconciliation processes.
- Comprehensive payment tracking: The system tracks and logs payments in real time and updates open invoices, so that you can have clear visibility of your financial performance in your profit and loss statements.
- Operational efficiency: Synder saves manual effort, reduces errors, and increases productivity because it automates routine tasks in transaction categorization, payment matching, and tax tracking.
- Insights and decision-making: With its accurate financial records and detailed reports, Synder provides retail businesses with the kind of insights that help identify revenue drivers and ways to optimize their operations. That empowers decision-makers to act on data rather than assumptions.
Ready to optimize your retail business’s operations? Test Synder’s features with a 15-day free trial or join our Weekly Public Demo to experience the benefits firsthand.
Closing thoughts
Running a business can be a thrilling journey filled with opportunities to innovate and adapt. In retail, success requires agility, creativity, and the ability to keep up with a fast-paced, ever-changing market. Current trends in AI, sustainability, and experiential shopping are rewriting the industry’s rules, offering businesses new ways to connect with customers and stand out in an aggressive landscape.
By staying ahead of such trends and using tools like Synder to simplify and optimize operations, retailers can turn potential challenges into opportunities to grow and innovate. The future of retail is dynamic; those that will embrace the change with smart strategies and the right resources are going to be poised for lasting success.
Stay tuned for more insights and strategies in upcoming Synder webinars!
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