January 27, 2025 Industry news
UK retail is currently undergoing a profound transformation and 2025 set to be a pivotal year.
Advances in technology, evolving consumer demands, and innovative new business strategies are converging to redefine how we shop.
Here are six of the key trends we expect to see have the greatest impact in shaping the future of retail:
1. Personalised shopping experiences powered by AI
Personalisation is becoming much more complex and has advanced far beyond simply addressing customers by name. Rapid advances in artificial intelligence (AI) is now taking this even further and, in 2025, we can expect to see more and more businesses use AI to deliver deeply customised shopping experiences.
Retailers such as Walmart are already leveraging AI to provide tailored recommendations, such as curated menus based on past purchases. These AI-powered innovations will increasingly extend to dynamic pricing that adapts to individual budgets, loyalty programs designed around personal preferences, and product suggestions that will feel as natural and intuitive as advice from a trusted friend.
2. Supply chain transparency: from factory to feed
The foundations of customer relationships are shifting in the UK and the informed, knowledge-hungry customer will be the norm in the near future. Our own research has revealed that by 2030, the experience most in demand from customers will be access to detailed product information.
Product transparency – its ingredients, its provenance, its carbon footprint – will become critical when earning customers’ trust and cementing their loyalty. Shoppers are no longer focused solely on price but are increasingly interested in the origins and production processes behind their purchases.
By 2025, supply chain transparency will evolve from a competitive advantage to a fundamental requirement. Legislative changes, both at home and overseas, are starting to compel brands and retailers to disclose detailed information about sourcing and sustainability, enabling consumers to make informed decisions aligned with their values.
3. The rise of social commerce
Social media is no longer merely a marketing tool. Platforms such as TikTok Shop and Instagram Shopping are revolutionising retail by combining social media engagement with ecommerce to combine discovery, consideration and purchase – all on one – platform for a seamless shopping experience.
Gen Z consumers, who are more inclined to trust influencer reviews and live-stream demonstrations over traditional advertisements, are driving this shift. Retailers that integrate these platforms effectively will capture the attention and spending power of this demographic.
4. The resale revolution in luxury
The resale market is emerging as a significant force in the luxury segment, aligning with consumer demand for sustainability, affordability and circularity.
In 2025, purchasing pre-owned items will transition from a budget-conscious choice to a preferred option for environmentally conscious consumers. Major brands like Ikea, Levi’s, and Zara are launching their own resale platforms, while dedicated resale marketplaces like Vinted and Depop are becoming mainstream. This trend underscores a broader shift toward circular economy models in retail.
5. Building resilient supply chains
Recent disruptions have highlighted the need for supply chains that are not only efficient but also adaptable.
In 2025, retailers will continue to employ AI and machine learning to anticipate and mitigate disruptions proactively.
Tesco are one of many big retailers leading the way, piloting innovations such as QR codes powered by GS1 to support greater data efficiency and transparency.
This will also help to address challenges such as food waste and inventory management.
6. Sustainability as a core business strategy
Sustainability is no longer an optional initiative—it is becoming a foundational aspect of retail business models. 2025 will see more and more retailers integrate carbon footprint labelling, climate-impact scoring and circular economy practices into their operations. Some are even experimenting with climate-responsive pricing models, where the cost of products reflects their environmental impact. These measures align with growing consumer demand for eco-conscious products and new legislative demands from around the world.
As retail continues to evolve at an unprecedented pace, these six transformative trends highlight how businesses must adapt to meet the demands of a rapidly changing landscape. From AI-driven personalisation to sustainable supply chains, the future of retail will be defined by innovation, transparency and consumer-centric strategies.
Emma-Michaela Rigby
A landmark year
The future of retail is not just about selling products—it is about building meaningful connections and delivering value in new and dynamic ways.
At GS1 UK, we remain committed to supporting businesses through these shifts, helping them harness the power of trusted data to stay competitive and thrive in this new era of transparency.
2025 is set to be a landmark year for the industry and those who embrace these changes will be best positioned to lead the way.
