As the e-commerce industry prepares for a transformative year, experts anticipate significant changes driven by technological innovation, shifting consumer expectations, and economic stabilization.
James Brooke, CEO of Mapp, a global marketing cloud provider, spoke with Retail Gazette about the trends retailers should watch in 2025. Brooke’s experience in digital marketing, e-commerce, and artificial intelligence positions him as a leading voice in the sector.
Cautious Optimism Amid Challenges
Reflecting on the hurdles of recent years, Brooke pointed to economic pressures, rising customer acquisition costs, and geopolitical uncertainty as key challenges for retailers. However, as 2024 draws to a close, easing inflation and economic stability are fostering optimism for the year ahead.
“Retailers have faced immense stress, particularly during peak trading seasons, where up to 50% of annual sales occur,” Brooke said. “But with improving economic conditions, there’s a sense that 2025 could bring renewed opportunities for growth.”
Loyalty Strategies Take Center Stage
Brooke identified a fundamental shift toward loyalty-driven strategies as retailers grapple with rising customer acquisition costs, which increased by 15% in 2024, according to ContentSquare.
“Retailers are prioritizing customer lifetime value over one-off transactions,” Brooke said. “Concepts like ‘share of wardrobe’ in fashion demonstrate how brands are embedding themselves deeper into consumers’ lives.”
This approach reflects a broader transformation as businesses pivot from transactional to relationship-focused models.
AI to Reshape the Shopping Experience
Artificial intelligence is set to play a pivotal role in 2025, with Brooke predicting the rise of AI-powered shopping agents that will act as intermediaries between consumers and brands.
“These tools will curate options, summarize offers, and even make purchases based on user preferences,” Brooke said. “This will fundamentally change how retailers structure product catalogs and engage customers.”
Brooke also noted AI’s potential to improve operational efficiency, from supply chain optimization to demand forecasting, aligning with growing consumer demands for sustainability and reduced waste.
The Omnichannel Imperative
Brooke emphasized the importance of seamless integration between digital and physical retail channels, warning that disjointed strategies alienate customers.
“Consumers expect a unified experience,” he said. “Integrating data across all touchpoints allows retailers to forecast demand, tailor products, and deliver personalized interactions.”
Mobile apps, Brooke added, will be critical tools in achieving this, offering not just convenience but also valuable first-party data for deeper customer relationships.
Privacy and Trust as Competitive Advantages
With increasing data privacy regulations and consumer awareness, Brooke urged retailers to embrace transparency and trust as differentiators.
“Retailers who adopt privacy-first practices will gain a competitive edge,” he said. “Markets like Germany are already setting the standard with privacy-conscious solutions.”
The trend highlights the importance of first-party data, as businesses move away from third-party sources to build direct relationships with consumers.
Flexibility Over Monolithic Platforms
Brooke predicted a continued shift away from legacy e-commerce platforms toward flexible, composable solutions.
“Retailers are moving beyond monolithic systems like ATG and Hybris,” Brooke said. “Platforms offering flexibility and scalability, such as Shopify, are enabling faster adaptation and lower costs.”
Emerging Trends: Conversational AI and Ethical Personalization
Brooke pointed to conversational commerce and ethical personalization as under-the-radar trends gaining momentum.
“Voice interfaces and smarter AI will make interactions more intuitive,” he said, highlighting tools like Alexa and natural language systems.
On personalization, Brooke stressed transparency. “Retailers must allow consumers to meaningfully opt in and understand how their data is used. Trust and openness will drive long-term success.”
A Bold Prediction and Call to Action
Brooke’s boldest prediction for 2025? The widespread adoption of AI shopping agents.
“They’ll start small but quickly redefine the retailer-consumer dynamic,” he said.
For retailers, Brooke’s advice is clear: embrace AI and insights-driven technologies now.
“Waiting will leave you unprepared,” he warned. “The winners will be those who act with agility and foresight.”
Looking Ahead
As 2025 approaches, Brooke remains optimistic about the opportunities ahead. Advances in AI, loyalty strategies, and omnichannel integration are expected to drive growth in an increasingly competitive landscape.
“Retailers must experiment, learn, and adapt,” Brooke said. “The future is already here, and those who embrace change will thrive.”