The future of retail: Trends for 2025 and beyond

The retail world is transforming at a breathtaking pace. Small business owners are navigating a landscape shaped by tech innovations, heightened consumer expectations and the relentless march toward increased transparency.

A recent report by GS1 UK, A new era of transparency, outlines the key trends set to define retail in the coming years. As a small business owner, here's what you need to know to thrive in this rapidly changing environment.

Transparency is the new currency

Customers don't just want to buy products – they demand to understand them. Detailed information about a product's ingredients, origins, carbon footprint and ethical standards will be essential to earn consumer trust.

For small businesses, this means that authenticity and openness aren't just ethical choices – they're business necessities.

Thanks to technology like QR codes, providing this information is more accessible than ever. A quick scan will let customers see everything from allergen data to a brand's story. The takeaway? Transparency isn't just about compliance – it's your new competitive advantage.

QR codes: The future of product engagement

By 2026, they'll be the norm in UK retail environments, say 71% of respondents. All believe this will be the case by 2030, while 41% expect it to have supplanted the barcode by that time as the product identifier.

Why the shift? QR codes can carry much more data, allowing businesses to connect customers with dynamic, real-time product information.

For small businesses, this opens up huge opportunities:

• Educate customers on how to use, recycle or repurpose products.

• Showcase your brand story, highlighting sustainability and ethical practices.

• Streamline operations with better inventory management and supply chain insights.

The bottom line? Investing in QR technology now isn't just smart – it's essential.

Sustainability will be non-negotiable

Consumers are no longer passive about climate concerns. They're actively choosing brands that fit with their values.

In the GS1 UK report, nearly half of retail executives agreed that achieving sustainability goals will require significant investment in technology, including QR codes. These codes will help businesses track and report on their environmental impact and share this information with customers.

For small businesses, the move toward sustainability doesn't have to break the bank. Simple steps – like sourcing ethically, reducing packaging waste and using QR codes to educate customers – can demonstrate your commitment and win loyalty.

Technology will transform the customer experience

The retail world is embracing technologies like artificial intelligence (AI), augmented reality (AR) and predictive analytics to reshape how customers shop. Here's how small businesses can take advantage of these tools:

• AI for insights: Predict customer preferences and make managing stock as efficient as possible.

• AR for engagement: Allow customers to visualise products in their homes or try on virtual items.

• IoT (Internet of Things) and blockchain for trust: Provide real-time updates on product journeys, from production to purchase.

Even modest investments in these areas can significantly boost the customer experience and set you apart from competitors.

The new loyalty: Built on trust, not rewards

Traditional loyalty schemes – think points and discounts – are losing their edge. Today's customers want more than perks – they want to trust the brands they support.

Transparency about product sourcing, ethical practices and environmental impact is becoming a key driver of loyalty.

For small businesses, this is good news. You don't need deep pockets to compete in the loyalty game. Instead, focus on:

• telling your story, by sharing your values, practices and impact

• engaging with authenticity – use digital tools like QR codes to provide customers with honest, detailed information

The rise of omni-channel excellence

The shift from physical stores to online shopping continues to accelerate, but the future is about blending both worlds seamlessly. Customers expect the convenience of online shopping paired with the engagement of in-store experiences.

For small businesses, this means:

• optimising online platforms – make sure your website and social channels offer an easy, enjoyable shopping experience

• enhancing in-store visits – use digital tools like interactive kiosks or QR codes to enrich the shopping experience

• personalising interactions – whether online or offline, tailor the experience to individual customers

The supply chain as a story

Customers are increasingly curious about where products come from and how they're made.

Supply chain transparency isn't just a challenge for big brands – it's an opportunity for small businesses to shine. Highlighting local suppliers, ethical sourcing and eco-friendly practices can set you apart.

QR codes can help you share this journey, connecting customers to details about every step of your product's lifecycle. This level of openness builds trust and strengthens your brand.

Retailers must prepare for a digital-first future

Digitising retail operations is no longer optional. From AI-driven inventory systems to virtual-reality fitting rooms, technology is reshaping the retail landscape.

But you don't need to adopt everything at once. Start with technologies that deliver the most value for your business. That might be:

• QR codes for product transparency

• AI tools for forecasting demand

• cloud-based platforms for better data management

The key is to keep moving forward. Even small steps toward digitisation can yield big rewards.

Final thoughts: Embrace the era of transparency

The retail world is entering a new era defined by transparency, technology and trust. For small business owners, this transformation offers exciting opportunities to connect with customers in deeper, more meaningful ways. Whether it's investing in QR codes, embracing sustainability or adopting AI, the time to act is now.

As Kate Hardcastle MBE puts it in the report:

"This new wave of transparency will shatter the old loyalty models. What we're looking at is a loyalty rooted in deep respect – where customers and brands forge alliances built on openness, authenticity and trust."

Are you ready to meet the demands of the informed customer? The tools and technologies are here. It's up to you to harness them and lead your business into the future.

Getting "Retail Ready" at the StartUp Show

Join our flagship event in January to hear from various retail experts and entrepreneurs, including fashion brand consultant Clare Alexander, Flake Bake co-founder Mike Williams and Hunter & Gather founder Amy Moring discuss the journey from product concept to retail shelves.

Sponsored by GS1 UK, the panel will discuss how to develop a stand-out product, navigate the complex laws surrounding packaging, build relationships with retailers, and create a strategy to secure shelf space.

In an earlier panel, three business founders will discuss emerging consumer trends, the latest retail technologies, and how they've used QR technology to adapt to the ever-changing retail landscape.

The StartUp Show takes place in St. Paul's London on Saturday 25 January 2025. Buy your tickets today