By Robert Sandison
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December 10, 2024
The retail landscape in the U.K. is evolving as fast as consumers’ expectations. For retail brands, staying ahead means embracing new tools, data-driven strategies, and sustainability. Here are my top five trends shaping retail marketing for a fast start to 2025. 1. AI-Powered Personalisation AI is becoming a game-changer for retail brands, helping create hyper-personalised shopping experiences. From recommending products to tailoring email campaigns, AI tools are boosting engagement. Retailers using AI-driven personalisation are already seeing conversion rates increase by up to 20%. In 2025, brands that embrace AI will lead the way in delivering seamless, customer-focused marketing with tools such as Dynamic yield to personalise content and optimise ad targeting and dynamic content creation with the likes of Adobe. 2. First-Party Data Drives Loyalty As third-party cookies fade away, first-party data is becoming invaluable for retailers. Loyalty programs, interactive surveys, and email sign-ups are helping brands build deeper relationships with their customers. Currently, 62% of U.K. retailers are investing in better data collection strategies to ensure compliance with GDPR while improving targeting and insights. For instance, brands like John Lewis are using their extensive customer data to craft tailored experiences, reward repeat customers, and drive retention. By leveraging CRM systems that integrate first-party data, these companies are able to offer more personalised loyalty rewards, targeted promotions, and exclusive offers based on customer behaviours. 3. Connected TV Advertising for E-Commerce With 84% of U.K. households streaming on platforms like ITVX and All 4, Connected TV (CTV) is reshaping how retail brands advertise. CTV combines the scale of television with the precision of digital, allowing retailers to target audiences more effectively. Expect a 25% rise in retail CTV ad spend in 2025, especially for driving e-commerce sales. For emerging brands, the lower entry costs of CTV make it accessible compared to traditional TV. Platforms such as Roku and Amazon’s Fire TV provide affordable options for creating high-impact ads targeted to specific demographics. These platforms cater to growing consumer demand for ad-supported video-on-demand (AVOD), a cost-effective alternative to subscription-based services. 4. Short-Form Video for Product Discovery Platforms like TikTok, Instagram Reels, and YouTube Shorts have transformed product discovery. For retail brands, short-form videos are a way to connect quickly and authentically. Videos under 60 seconds drive 70% higher engagement, making them a must-have tool for showcasing products and trends. Fashion retailers such as ASOS and PrettyLittleThing use quick video edits to showcase outfit combinations or highlight new collections, often tagged with “shop now” links. This makes it easier for consumers to transition directly from discovery to purchase, reducing friction in the buyer’s journey 5. Sustainability as a Selling Point U.K. shoppers increasingly value sustainability, with 77% saying they prefer eco-conscious brands. Retailers are responding by highlighting green initiatives, from carbon-neutral shipping to sustainable packaging. According to the British Retail Consortium (BRC), 85% of major UK retailers identify sustainability as a key business driver, with many adopting long-term strategies beyond regulatory compliance. However, only 40% can currently attribute revenue to sustainable products, indicating untapped potential to connect these efforts directly to sales growth. Marketing these efforts authentically will be key to winning consumer trust and loyalty in 2025. Ultimately, the retail brands that succeed will be those that balance innovation with authenticity, leveraging technology to serve real consumer needs. The future of retail lies in forging deeper connections - through storytelling informed by behavioural data, and meaningful action. 2025 promises opportunities for bold, customer-focused brands to lead the way. ‘Rob Sandison, consultant with over 20yrs experience of strategic planning and client service leadership in global and UK media industry.’