Salesforce’s sixth Connected Shoppers Report highlights the challenges and opportunities in the retail landscape. Retailers are feeling the squeeze from rising customer acquisition costs, returns, inflation, and changing consumer preferences. To meet evolving customer needs, they are increasingly turning to AI and unified commerce strategies to streamline operations and enhance shopping experiences. While physical stores are still important, digital shopping paths are becoming more fragmented. The report reveals that almost 40% of shoppers, especially younger ones, are using AI to discover products. Trust is vital for consumers to engage with AI, and retailers need to ensure data security and transparency to build confidence as they embrace AI-driven solutions. Overall, both retailers and shoppers are moving towards a future shaped by AI technologies.
Data from Salesforce’s sixth Connected Shoppers Report reveals crucial insights about the future of retail. Retailers are currently facing challenges from multiple fronts, including rising customer acquisition costs, increasing product returns, and changes in consumer behavior. These factors are influencing profit margins as retailers also contend with inflation and competitive pressures.
To adapt to these shifting dynamics, retailers are turning to AI and unified commerce strategies. These approaches allow businesses to effectively manage sales across different platforms, enhancing customer experiences both online and in-store. Michelle Grant from Salesforce emphasizes the importance of connecting sales channels and customer data. This seamless integration not only improves efficiency but also drives business growth.
As shopping habits evolve, consumers are experiencing increasingly complex buying journeys. Though physical stores still play an important role, their share of purchases is projected to decline from 45% in 2024 to 41% by 2026. Digital spending is spreading across various platforms, including marketplaces and brand websites, rather than consolidating into one dominant channel.
In response, retailers are boosting their AI investments, with 76% planning to increase spending in the next year. Customer service emerges as the primary application for AI agents, who are tasked with answering inquiries and managing returns, allowing human staff to focus on more complex interactions. As highlighted by Velia Carboni from SharkNinja, AI can help create a loyal customer community.
However, realizing the full potential of AI requires unified data. Many retailers still face challenges due to disconnected systems, leading to inefficiencies for both staff and customers. Notably, 81% of retailers report that inefficient technology impacts associate productivity, and nearly half of shoppers have abandoned purchases because of cumbersome processes.
Despite these challenges, 86% of retailers are actively pursuing unified commerce solutions, which promise to improve efficiency and enhance the shopper experience. Interestingly, consumers are also ready to embrace AI in their shopping journeys. A significant portion—39% of shoppers, and 54% of Gen Z respondents—are already using AI for product discovery, showing openness to more automated solutions.
For AI to gain consumer trust, transparency regarding data use and a straightforward opt-in/opt-out process are essential. Grant underscores that success lies in addressing the needs of both retailers and shoppers, ensuring that technology is connected while also fostering trust.
In conclusion, as both retailers and consumers move toward an AI-driven future, the emphasis on connected data and the seamless integration of technology will play pivotal roles in shaping the retail landscape.
Tags: retail trends, AI in retail, unified commerce strategies, consumer behavior, Salesforce report.
What are the key retail trends for 2025 according to Salesforce?
Salesforce highlights trends like increased use of AI for personalizing shopping experiences, more focus on sustainability, and seamless online and offline shopping integrations.
How will AI change the retail landscape by 2025?
AI will help retailers better understand customer preferences, predict buying behavior, and enhance customer service, making shopping more personalized and efficient.
What role does sustainability play in future retail trends?
Sustainability is becoming essential. Retailers will focus on eco-friendly products and practices to meet customer demand for responsible shopping options.
How will customer experiences be improved in retail by 2025?
Retailers will use advanced technologies, like AI-driven chatbots and virtual reality, to make shopping faster, easier, and more enjoyable for customers.
Are small retailers also adapting to these trends?
Yes, small retailers are adopting these trends too. They are using new tools and technologies to compete better and provide great customer experiences, just like larger retailers.