Retail & Commerce Trends to watch in 2025

Dentsu

Social commerce, fast shopping, loyalty expectations and generational buying patterns are reshaping how European consumers interact with brands. While digital platforms continue to gain traction, preferences vary widely across regions and age groups. To remain relevant, brands must balance innovation with simplicity and cater to both emotional and practical needs.

Social Media Shopping Behaviour

  •  16% of UK consumers shop weekly on social media platforms. 
  • 39% of Europeans have never shopped through social platforms. 
  • 52% feel overwhelmed by ads, especially in France. 
  • Ads with limited offers and product recs are the most appreciated.

Social commerce is growing fast, especially in the UK, but still faces hesitancy. While younger users are embracing platforms like Instagram and TikTok to shop, many consumers of all generations feel overwhelmed with ads on these platforms. However, not all ads are poorly received, discounts and personalised product suggestions are positively received. Brands should focus on these formats to strike the right balance between visibility and value.

Influence & In-Store Preferences

  • Social media drives 56% of product discovery. 
  • 49% of consumers rely on friends and family for purchase decisions. 
  • Gen Z also reports strong influence from creators/influencers. 
  • 65% of shoppers want loyalty cards for personalised in-store offers.

Discovery often starts online, but decision-making is deeply rooted in personal networks. Friends, family, and influencers play a significant role, particularly for Gen Z. While in-person shopping is still preferred by Boomers, most consumers want their offline experience improved with personalised rewards. Loyalty cards and tailored offers are essential to bridge digital and physical retail experiences.

Rise of Fast Commerce

  • 1 in 3 Europeans shop on fast commerce platforms monthly.
  • Spain leads with 45% monthly use of platforms like Shein and Temu. 
  • Price is the top driver (52%), followed by convenience and fun. 
  • Ideal purchase volume is 3–5 items.

Fast commerce is dominating impulse-driven shopping behaviour. Platforms like Temu and Shein have a strong influence over Europeans with low prices and convenience. Consumers often treat themselves with small purchases, and most consider the quality to be acceptable or even excellent. Brands should continue to focus on offering affordable, easy-to-navigate experiences while reinforcing trust in product quality.

Retail Membership & Loyalty Trends

  • 52% of consumers have grocery memberships; 41% have general retail ones. 
  • Nearly half of Europeans have 3–5 memberships, UK leads this number at 31%.
  • Gen Z and Millennials are the most engaged users.
  • 44% say benefits are improving, mainly the younger generations.

Loyalty programs are widely used, but adoption and enthusiasm differ by generation. While Gen Z and Millennials engage the most, older consumers tend to be more skeptical of improvements. Still, everyone values tangible savings like free shipping and discounts. To strengthen engagement, brands must keep refining UX and make benefits clear and easy to access.

Cross-Continent Shopping Habits

  • 26% of Europeans shop from other continents at least monthly.
  • Spain (36%) and Italy (35%) are the most active markets.
  • UK shoppers show less interest in cross-border shopping.
  • German consumers prioritise trust and clear returns. Buying internationally is becoming more common, especially in Southern Europe.

These shoppers expect smooth online experiences, localised payment systems, and multilingual support. Meanwhile, trust and transparency are essential in markets like Germany and the UK. Clear policies and consistent support will be key to gaining ground in those regions.

Implications for Brands

  • Maintain high satisfaction through strong delivery & service.
  • Tailor offers: Millennials & Gen X love deals, Boomers love discovery.
  • Optimise UX and checkout flows for convenience.
  • Showcase both price and quality to different age groups.

The fast commerce boom shows no signs of slowing. To stay competitive, brands must prioritise user experience, transparent pricing, and generational targeting. While younger consumers lean toward convenience and quality, Boomers care more about variety and value. Messaging should reflect those nuances to drive retention and satisfaction.