This report identifies key demand-side trends in the retail industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the retail industry based on Avasant’s assessment.

Why read this Market Insights?

Retail enterprises are reimagining operational intelligence by integrating generative and agentic AI that can autonomously generate insights, make context-aware decisions, and take adaptive actions across   the retail value chain. They are using geofencing, embracing avatars and immersive technologies to deliver hyper-personalized engagement, and modernizing physical stores into intelligent, experience-led environments. As consumer expectations shift toward more relevant and personalized advertising, retailers are scaling retail media networks (RMNs) to harness first-party data, enabling brands to deliver targeted campaigns that maximize ROI and drive deeper shopper engagement.

The Retail Digital Services 2025 Market Insights™ aids enterprises in the retail sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Defining the retail digital services scope
  • Key drivers and enterprise response
  • Avasant recognizes 23 top-tier providers supporting the retail industry in digital transformation

Demand-side trends (Pages 8–13)

• • Reimagining operational intelligence by adopting AI systems that can autonomously create, reason, and decide across the retail value chain.
  • Delivering personalized, real-time, and immersive experiences to meet evolving consumer expectations through hyper-personalization.
  • Elevating physical stores into immersive, experience-driven hubs to increase footfall, build brand affinity, and offer differentiated value beyond online channels.
  • Improving supply chain resilience and agility by using real-time data and predictive technologies to navigate demand fluctuations, fulfillment complexity, and ensure sustainability.
  • Using customer data to create personalized ads, boost shopper engagement, and generate new revenue through retail media networks (RMN).

Key contacts (Page 14)

Read the Research Byte based on this report. Please refer to Avasant’s Retail Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.