3 shifts shaping retail strategy — and the decisions leaders need to make now

From shifting customer expectations to emerging technologies, retail is changing fast. Discover three key trends transforming the industry and how retailers can navigate what's next.

Key points

Hyper personalization is becoming the norm. Implement it to stay ahead of the curve, while maintaining customer trust.
AI and agentic commerce are helping retail businesses build more seamless experiences and qualitative relationships with customers.
Data and digital transformation help retain customers. Don’t just meet expectations — give them reasons to come back.

The retail landscape is evolving rapidly, creating more opportunities — and challenges — for retailers. From changing customer habits to emerging technologies, how do you make sense of it all? Which decisions will position your business to lead? Three shifts deserve particular attention.

1. Hyper personalization is becoming the norm

Personalization is no longer just about recommending relevant products. It’s about delivering personalized experiences that make shoppers want to come back. The ability to collate and analyze consumer data has led to customers expecting brands to only show them what they want to see — from discovery to checkout.

In fact, according to McKinsey research, 71% of consumers expected companies to deliver personalized experiences, and 76% got frustrated when it didn’t happen.

Retailers have more data than ever before. Turning it into meaningful customer experiences, however, is another challenge.

At the same time, customers expect more than personalization. They want the benefits of a more tailored experience without feeling like their privacy is being compromised or that their information is being used irresponsibly.

What should retailers do to stay ahead?

Unify data across touchpoints: Stop treating each channel separately. Consider how insights from websites, apps, loyalty programmes and brick and mortar stores can help understand customers better.
Personalize the entire journey: Think beyond recommendations. Use customer insights to tailor communications, offers, delivery choices and checkout experiences.
Make trust part of personalization: Be transparent about how data is collected and used, and give customers experiences that feel helpful rather than intrusive.
Measure the commercial value: Connect personalization efforts to measurable business outcomes. Track conversion, repeat purchases, average order value and customer satisfaction.

Offering a choice of payment methods and optimizing checkout can create a more relevant, seamless customer experience. Worldpay (now Global Payments) supports domestic processing in 68 markets, helping retailers expand internationally while reducing checkout friction.

2. AI and agentic commerce are transforming retail

AI and agentic commerce aren’t just reshaping how retailers operate. They’re transforming how customers find, compare and purchase products.

Retailers used to focus on attracting customers to their websites or apps and guiding them through the purchasing journey. Now, AI assistants increase product discovery and even complete transactions for customers.

A recent McKinsey report revealed that more than 50% of global consumers use AI for shopping, and that number continues to rise. How can retailers prepare for this shift?

Make product info AI-ready: Ensure that information is accurate for customers comparing options. Check product descriptions, pricing, availability and product data.
Rethink product discovery: Don’t rely solely on traditional search and advertising. Consider how products are surfaced and recommended through AI-powered shopping tools.
Maintain customer trust: Consider how to preserve transparency and control when AI is involved in purchase decisions.
Experiment before scaling: Test relevant AI use cases, assess their impact and understand where human oversight remains necessary.

Payments, authentications, fraud prevention and transaction security will all become more crucial as agentic commerce evolves. Make sure your business is protected.

3. Retailers are shifting focus to brand loyalty and customer retention

Gone are the days of relying on discounts to bring customers back. Promotions might get new customers, but exceptional experiences retain them. A lack of return purchases could be a result of not collecting enough data to really understand what shoppers want.

And with so much choice at their fingertips, shoppers can easily compare products, prices and delivery options before deciding where to spend. While many brands prioritize new customers at the expense of existing ones, there’s a clear opportunity to do things differently. How can your business stand out?

Reduce friction at every step: Simplify checkout, expand product choices, disclose delivery costs upfront and make returns easy to encourage repeat purchases.
Make loyalty more personal: Look beyond generic discounts and consider relevant rewards, personalized benefits and experiences that prompt engagement.
Analyze what brings customers back: Discover which activities drive loyalty — from repeat purchase rates and purchase frequency to customer lifetime value.
Bridge online and in-person shopping: Deliver consistent service and benefits, whether your customers are buying in app, in store or online.

Payments are only one part of the shopping journey, but getting them wrong can leave a bad impression. See how better payments can help create seamless experiences.

“The more touchpoints [we] have with a customer, the more they spend with us. That’s why we invest in digital.” MC Sonae

Retail is evolving fast. Staying ahead means being ready to adapt. Ready to prepare your business for what’s next? Contact our team to explore how we can help.

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