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#BizTrends2025: 7 trends for retailers to '2020-thrive'
6 Feb 2025
In 2025, South Africa's retail landscape is poised for transformative shifts driven by technology, sustainability, and evolving consumer behaviour.
Image generated using Canva from the prompt "future of retail"
For retailers to not only survive but thrive, they need to ensure constant adaptation and innovation to meet the needs of consumers.
Here are some retail trends to to be aware of in 2025:
1. Digital and omnichannel transformation
Photo by Kaboompics.com via www.pexels.com
Retailers are accelerating their digital initiatives at a rapid pace by merging online and offline experiences. With improved digital infrastructure and widespread mobile adoption, consumers are increasingly expecting seamless transitions between e-commerce platforms, social media, and physical stores.
At its core, omnichannel retailing is about creating a unified, cohesive customer experience across all touchpoints.
This integrated approach is vital for building customer loyalty, driving engagement, and therefore boosting sales. But, there's no one-size-fits-all solution.
South African retailers must navigate unique challenges, including varying levels of digital access and diverse customer preferences, to succeed.
2. E-commerce growth and social commerce
Image by andrespradagarcia from Pixabay
In South Africa, the shift to online shopping is gaining momentum, supported by robust mobile payment systems and localised e-commerce platforms.
According to Statista’s Digital Market Outlook estimates, approximately 11.7 million e-commerce users in South Africa are forecast to be registered in 2025, increasing to 21.52 million users by 2029.
In recent years, there's been significant growth in South Africa's online retail sector, surging to R71bn in 2023, a 29% increase from 2022, positioning the sector to break the R100bn mark by 2026.
Social media channels are becoming critical sales channels, as influencers and community-driven marketing strategies resonate with local consumers.
According to DHL's Online Shopper Trends Report 2024, social commerce is becoming the next big thing in e-commerce. It allows users to buy products directly via networks like Instagram and Facebook.
Sales through social media platforms are expected to reach $2tn by 2025 compared to an estimated $700bn in 2024.
With this also comes a shift in preferred devices for buying online. According to a Statista survey, 77% of South Africans browse and purchase products with their smartphones, using them as the dominant shop window and purchasing device. Of course, this also has implications for the presentation of products and the structure of online stores.
Retailers must also look at streamlining online payments for a faster, smarter checkout experience.
3. Experiential and personalised retail
Source: https://voxxexhibits.com
Brick-and-mortar stores are reinventing themselves as experiential hubs. Retailers are focusing on creating immersive in-store experiences — think interactive displays and personalised services — to differentiate from online competitors.
Shopping malls are now incorporating green spaces, art exhibitions, and leisure activities to create vibrant, community-focused environments. This shift caters to consumers’ growing desire for more than just a transactional shopping experience — they want engagement, creativity, and discovery.
In the era of instant gratification, personalisation has the power to drive customer loyalty and engagement. Customers want to feel valued, and personalised service turns every interaction into an opportunity to create a memorable experience.
4. Sustainability and ethical consumption
Source: https://biodegradable.co.za
Environmental consciousness is reshaping consumer expectations. South African retailers are increasingly adopting sustainable practices — from eco-friendly packaging to locally sourced products — to appeal to a market that values ethical and responsible consumption.
Retailers are responding by adopting eco-friendly practices, such as reducing plastic use, sourcing sustainable products, and supporting local suppliers. This trend not only appeals to environmentally conscious shoppers, but also differentiates businesses in a competitive market.
This shift has seen retailers responding to unique ESG-related risks with innovative ESG strategies to enhance their corporate reputation and ensure long-term viability.
5. Local sourcing and community engagement
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There’s a growing emphasis on supporting local producers and entrepreneurs and integrating community narratives into retail strategies. This trend not only bolsters local economies but also creates stronger, culturally resonant brand identities.
As an example, Amazon South Africa recently opened its Amazon Seller Success Centre - a walk-in seller hub aimed at empowering local businesses from across the nation to reach more customers and expand their businesses.
6. Technology-driven insights
Photo by Alex Knight on Unsplash
Investment in AI, data analytics, and IoT is enabling retailers to better understand customer behaviour, optimise inventory, and tailor marketing efforts. This tech integration supports more agile and customer-centric business models.
With the increasing role of technology and omnichannel retailing in South Africa, retailers are becoming smarter at understanding what shoppers need because of all the data that is being acquired through online retailing channels and loyalty programmes.
To stay competitive in this evolving landscape, retailers must embrace digital disruptions and rethink their business models.
7. Adaptive supply chains
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E-commerce competition is fierce, and businesses are under increasing pressure to ensure customer satisfaction. For retailers navigating this fast-paced environment, the key to success lies in meeting — and exceeding — customer expectations.
Achieving high customer satisfaction hinges significantly on the efficiency of last-mile delivery.
The 2024 SA Consumer Experience Report reveals that 60% of respondents consider quality delivery a key driver of repeat purchases.
Given that reliability is also closely tied to last-mile delivery, partnering with a dependable courier service has become essential to running a successful e-commerce business.
As the retail sector continues to innovate, these trends can play a vital role in addressing consumer expectations, environmental challenges, and the demands of a rapidly evolving market.
Overall, South Africa's retail sector in 2025 will be marked by a dynamic blend of modern technology and tradition — while honouring local roots and community values.
