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After years of economic uncertainty and inflation, the market is beginning to show signs of stability. This is good news for retail marketers, as it could allow consumers to adapt to current prices and regain confidence in their purchasing decisions, encouraging them to spend more freely in the months ahead.
In this context, retail sales are forecast to grow at a slow and steady pace through 2028, hovering around 3% growth each year. Within the broader retail landscape, e-commerce continues to grow in popularity among shoppers and is forecast to account for 20% of total retail sales by 2028. This growth is, in large part, driven by the fact that consumers are increasingly purchasing essential goods online rather than in brick-and-mortar stores. For retail advertisers, this shift underscores the increasing importance of connecting with audiences on digital channels via a holistic, omnichannel approach.
Retail ad spending reflects these trends: It’s anticipated to surpass $100 billion for the first time in 2024 and reach $123.5 billion by 2026, with more than 87% of spending going to digital channels that year. To capitalize on this opportunity—particularly this expanding digital opportunity—retail marketers need to home in on the channels that consumers are spending time on, use data-driven insights to create the personalized experiences shoppers crave, and prioritize building trust with consumers. By focusing on consumer preferences and evolving technologies, retail marketing teams can make the most of their ad spending, connect meaningfully with consumers, and foster brand loyalty in an increasingly competitive landscape.
In 2025, finding the right media balance to connect intentionally with both in-store and online shoppers will be key. With approximately 43% of US shoppers preferring to shop mostly online compared to 27% favoring in-store visits, marketing teams must adapt their strategies to reach both groups—as well as the many consumers that opt for a hybrid of in-store and online shopping. This hybrid approach begins before the point of purchase, with a Basis x GWI Retail study finding that consumers generally take a hybrid approach to browsing as well, both looking at items in-store and searching online for items and reviews.
This trend underscores the need for an omnichannel strategy that seamlessly integrates across both online and in-person touchpoints. Currently, only 25% of consumers say they are satisfied with the omnichannel experience retailers provide, while 75% say they want a seamless experience. This highlights a significant opportunity for advertising teams to make meaningful improvements.
There are various approaches teams might consider to make the most of this opportunity. Advertisers might run CTV ads with a QR code that both links to a website and to a store locator; leverage digital out-of-home ads in conjunction with geotargeted mobile ads to connect with shoppers near a retailer’s brick-and-mortar location; or create personalized email campaigns that include exclusive in-store promotions, encouraging recipients to visit physical locations while reinforcing their online engagement. By weaving these elements together, brands can create a more cohesive shopping experience that effectively meets consumers wherever they are in their buying journey.
To empower their teams to achieve this omnichannel balance, retail marketing leaders might consider leveraging an automated advertising platform that integrates all channels into one place. By centralizing data and campaign management, such platforms ensure that retail marketers can easily monitor performance across all channels, optimize their strategies in real-time, and deliver a cohesive shopping experience that meets consumers where they are—be that in a physical store or browsing on their tablet at home.
The rise of social commerce is another trend that is slated to shape the retail marketing landscape in 2025. Over the past several years, social media and shopping have become nearly inseparable, with many social platforms—including Facebook, Instagram, TikTok, YouTube, and Snapchat—now serving both as digital storefronts as well as places to share ideas and connect with friends. Driven by the sheer amount of time users spend on social media each day as well as the influence of content creators, social commerce is quickly transforming how consumers discover and purchase products.
This trend is particularly pronounced among younger buyers. Shoppers aged 25-34 are leading the way, with 23.1% of them reporting at least one purchase via a social platform in the last year. In fact, 66.5% of all social buyers in the US are under 44, reflecting a younger demographic that is both digitally savvy and influenced by online trends. While Facebook currently accounts for the largest number of social commerce buyers across the total US adult population, younger generations are more likely to make purchases on Instagram, YouTube, and TikTok. This shift signals increased opportunities for advertisers to connect with younger buyers on these platforms in the years to come.
And just how substantial is social commerce’s impact on the broader retail landscape? US retail social commerce sales are skyrocketing: In 2023, they accounted for $67.06 billion in sales and are forecast to surpass $100 billion in sales in 2025. By 2027, that number is projected to reach $144.52 billion, representing an increase greater than 115% in just four years. For retail marketers, this growth emphasizes the need to embrace social platforms not just as advertising spaces but also as key channels for purchasing. As the lines between social media and e-commerce continue to blur, marketing teams that leverage social commerce effectively will be well-positioned to reach new audiences (particularly younger ones) and drive growth.
Making the most of brand loyalty programs is another key strategy for retail marketing teams looking to maximize customer engagement and drive loyalty in 2025. With close to three-quarters of US consumers citing such programs as an important or critically important factor to maintaining their brand loyalty, it’s clear that loyalty programs should be a key part of retail marketers’ strategies as they strive to connect meaningfully with consumers.
Yet as the market becomes increasingly saturated with loyalty programs, simply having one isn’t enough. The average US consumer belongs to nearly 18 loyalty programs, but only actively uses nine of them, demonstrating the need for retailers to prioritize features that resonate with consumers. And just what features do customers want from a loyalty program? Shoppers say the top features brands can offer to maintain their loyalty are discounts, surprise offers and/or rewards, and exclusive benefits (for instance, free shipping or early access to newly restocked items). Personalization also plays a pivotal role in making the most of loyalty programs, whether that be offering individualized discounts based on shopping behavior, customized product recommendations, or even AI-powered shopping assistants.
Beyond building brand loyalty and bolstering sales, loyalty programs are also a good way for marketers to effectively collect and leverage first-party data. By tracking customer purchases, preferences, and engagement patterns, retail marketers can gain valuable insights to tailor their marketing strategies, refine their loyalty program offerings, and improve their overall customer experience. Amidst the challenges posed by increasing signal loss, loyalty programs provide a unique opportunity for teams to build direct relationships with their customers and gather actionable first-party data in a privacy-first way.
As retail marketing teams and leaders prepare for the year ahead, focusing on emerging trends and evolving consumer behaviors will be key to standing out in an increasingly competitive landscape. From crafting a seamless experience that translates to both in-person and digital interactions, to tapping into the rapidly expanding world of social commerce, to leveraging loyalty programs both to foster brand loyalty and collect valuable first-party data, retail marketers can deliver meaningful experiences that resonate with today’s shoppers. By embracing these strategies, retail marketers will be well-positioned to not only meet consumer expectations but also drive growth and innovation in the ever-changing retail landscape.