Retailers diversify income as one in five earns 20 percent from side businesses

The retail sector is constantly changing due to advances in technology, shifting consumer expectations, and a dynamic economic landscape. Experts at Webloyalty, a leading company in generating additional income for e-commerce through retail solutions, have identified 10 key trends that will shape the future of the sector by 2025. These trends will redefine the consumer experience and how brands operate, making them crucial for navigating the changing landscape and succeeding in an increasingly competitive environment.

According to Eduardo Esparza, VP General Manager of Webloyalty Iberia & Brazil, “The year 2025 will mark a turning point for the retail sector, defined by innovation, sustainability, and a deep focus on the client. Brands that align with these key trends will be better positioned to face challenges and capitalize on opportunities.” The constant evolution of the market, from the rise of retail media to personalization driven by AI, is redefining not only the purchase experience but also the role of retail in consumers’ daily lives. Agility, authenticity, and the adoption of advanced technologies will be crucial for success.

Some of the key trends include the growth of retail media, which is projected to exceed $166 billion in global expenditure by 2025. Retail media is transforming digital advertising, positioning retailers as key players, and offering a more focused return on investment than traditional media. Another trend is the increasing importance of influencers, with over half of brands planning to increase their budget for content creators by 2025. Influencers play a crucial role in purchasing decisions, offering authentic and reliable recommendations that are especially valuable for younger generations.

Sustainability is also a key priority for the retail sector, with consumers wanting retailers to help them adopt a more sustainable lifestyle. According to a global guide, 64% of consumers want retailers to reduce packaging, 50% want information on how to recycle, and 46% need clarification on the origin of products. Resale, rental, and repair programs are gaining popularity, allowing brands to capture the attention of consumers looking for more conscious consumption. Companies that prioritize sustainability not only satisfy their conscience but also improve their results.

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Other trends include intersectoral collaborations, which are emerging as a key trend, with strategic collaborations between brands from different sectors or with different audiences. These alliances drive customer attraction, with estimated 23% growth, and provide unique experiences. Artificial intelligence is also consolidating as a transforming force in retail, with a projected market of $45,740 million by 2032. AI allows brands to offer personalized experiences that adapt to consumers’ needs, improving customer satisfaction and encouraging loyalty.

The rise of marketplaces is another notable trend, with retailers expanding their catalog with third-party products without the risks associated with inventory. Physical stores are reinventing themselves as experience centers, integrating technology and customization. Concepts such as “Instagrameable” areas, leisure and gastronomy spaces, virtual testers, contactless stores, and online collection points transform the role of traditional stores. This fusion of physical and digital creates attractive environments that strengthen the link between brands and consumers.

Authenticity has become a fundamental value for brands, with 88% of consumers considering it a key factor in their purchase decisions. Brands that project coherence and transparency in their values, from sustainability to communication, will gain consumer confidence and position themselves as leaders. Mergers and acquisitions are also on the rise, with large companies acquiring smaller brands to strengthen their position and expand their scope.

Finally, diversification of income sources has become a strategic priority for retailers, with the single-income source model becoming obsolete by 2025. Leading companies are transforming their platforms into multifunctional ecosystems, integrating options such as advertising or outstanding locations to generate recurrent income. Commercial spaces are evolving from transactional to immersive, combining trade, events, and subscriptions to offer dynamic experiences. In fact, 18% of retailers already generate at least 20% of their income outside their main business, according to a study by Webloyalty and BRC.

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