Coresight Research’s annual year-ahead outlook concludes a substantial proportion of retailers will move toward a unified strategy supporting seamless transitions connecting shopper touch points while leveraging emergent technology in consumer service and outreach.
Companies engaging consumers through unified commerce platforms, from Kraft Heinz to Ulta Beauty, will likely benefit from the seamless integration of back-end operations with all consumer touchpoints moving away from siloed channels, according to the Coresight study, Retail 2025: What Will Redefine U.S. Retail?. Coresight specializes in retail and technology research and insights.
Such channel integration, Coresight reported, will create more impulse buy and upselling opportunities as almost one-quarter of U.S. consumers stated their overall spending has increased either significantly, at 8.2%, or slightly, at 16.6%, as a result of engaging with retailers across multiple channels. Retail technologies connecting the in-store and online approaches to consumer interaction, including electronic shelf labels that can be updated automatically and smart carts supported by AI that can speed shopping and make personalized recommendations, should help drive revenues.
In addition, Coresight notes retailers also should leverage capabilities they already have or have the means to develop in expanding the ways in which they conduct business. Retail media, marketplaces and data sales that extend their brands effectively into new service realms can create fresh revenue streams. Amazon, Kroger, Target and Walmart, with their growing retail media operations have positioned themselves to generate a new flow of dollars, Coresight observed. Retailers getting their own media up and running should partner with tech firms to support the evolution of such initiatives to maximize their potential.
In addition, companies planning to sell or license proprietary technologies and/or software solutions to other businesses will generate additional revenue streams, with Shein currently promoting its “supply chain as a service” for third-party brands and retailers. Amazon has been among the pioneers in generating revenue by generating revenue streams from technology it has developed.
Another opportunity in the year ahead is strengthening marketplace capabilities, Coresight maintained, which can help traditional retailers such as Macy’s, Target and Walmart further gain share of the total retail market while competing more effectively against Amazon. The report notes Shein and Temu are likely to continue maintaining competitive edge in the marketplace space despite a recent U.S. government proposal to remove import subsidies, such as the de minimis rule, that exempt some goods entering the United States from duties.
Producers and retailers slow to embrace emerging technologies, digital platforms and innovative e-commerce strategies, such as those involving GenAI and store digitalization, will find it difficult to engage with modern consumers effectively, Coresight advised.
