‘You won’t capture a tech-savvy generation by fixing your internal finance platform’

Young consumers – who are still keen to spend – know what they want from retail technology long before you come close to thinking about it, let alone implementing it.

Some way beyond the table stakes of flawless home delivery or friction-free self-checkouts, they’re trying the latest tech trends on for size. And they’re waiting for you to catch up. The question is: will you, or can you?

Generations apart in adoption and spending intentions

Our 2025 Consumer Outlook research paints an interesting picture. A single age group stood out as likely to spend more money in 2025 than 2024 – those aged 18 to 35. This demographic also represents the fastest adopters of digital shopping technology, with 30% expecting to use more digital tools for shopping this year versus last.

The pace at which younger adults adapt and adopt these tools is staggering. Sure, not everyone is on board – 13% said they plan to use digital tools less. But for every person slowing down, nearly three are eager to increase their engagement.

If we’re honest, lagging behind consumer expectations isn’t news. Remember how the shift from teeming high streets to purpose-built out-of-town shopping centres was furiously contested before customers shortly flocked to these all-in-one shopping, dining and leisure meccas? Time and again, consumers push boundaries and businesses scramble to keep up. Today is no different – though the pace has quickened.

“People may appreciate the freedom of self-checkout but they still expect in-store human experts to provide guidance”

Young shoppers are not just pioneers, they’re the ultimate digital natives. They’ve woven tech tools into their purchasing habits from the moment age restrictions were lifted to welcome their fingerprint payment approval. However, many retailers remain fixated on upgrading back-office IT systems, while their customers scream for greater interactivity or personalisation in their shopping experiences. The harsh truth is that you won’t capture a tech-savvy generation by doubling down on your internal finance platform.

When it comes to winning over younger consumers, not all tech is created equal. Our study reveals a surprising distaste for over-automation, with unstaffed stores disliked by a third of respondents. People may appreciate the freedom of self-checkout but they still expect in-store human experts to provide guidance. Similarly, will chatbots’ history become more of a cautionary tale? Nearly 30% of consumers say they outright refuse to engage with them.

This doesn’t mean these practices are doomed but how you implement them matters. Generative AI may power smarter, more efficient bots but that’s irrelevant if the interaction irritates your consumer base.

Stop thinking systems, start thinking customers

It’s time to move beyond the “minimum viable digital experience”. If you want to gain an edge, consumers need more than convenience – they need engagement. Interactive tools such as virtual testers (trialling make-up via selfie or placing a sofa in your room virtually) and in-store product presentations are ripe with opportunity. Usage rates are still low according to our study – at 27% for interactive displays and just 11% for virtual testing – but the interest is undeniable. One-third of respondents said they’d like to try these tools, while plenty hadn’t heard such experiences were possible.

Don’t confuse playing catch-up with the perfect plan for ERP upgrades or perfectly aligned back-end systems. Those might help operations but they won’t win you customers.

“Invest in tech that engages consumers in ways they haven’t yet imagined – and do it where it matters most to them”

Perhaps the true game-changer is giving consumers reasons to be excited. Augmented reality, hyper-personalisation and frictionless omnichannel touchpoints aren’t just nice-to-haves anymore. They’re the new frontier in a retail battleground that goes far beyond checkout efficiency, whether that be RFID-enabled products or a set of scales to weigh your trolley.

Meet younger customers on their terms. Build seamless omnichannel experiences. Invest in tech that engages consumers in ways they haven’t yet imagined – and do it where it matters most to them, including through social commerce platforms like TikTok Live.

Younger consumers may be the growth story for 2025 but only if you can give them what they want before someone else does. Don’t just build tools – build loyalty. While your customers might appreciate a convenient process, what they’ll truly remember – and return to – is the experience. Otherwise, the same customers setting the pace will leave you in their digitally savvy dust. Catch up or step aside. The choice is yours.