Shopper Behavior is Changing for Good.

A New Era of Consumer Behaviour

Who would have thought that the world of 2025 would see shoppers embracing digital tools, hyper-personalisation, and sustainability as integral parts of their buying journey? Since 2020, the ripple effects of the global pandemic have reshaped retail behaviour at an unprecedented pace, and the changes have proven to be more than temporary adaptations. Businesses worldwide have experienced seismic shifts in how people interact with brands, shop, and make purchasing decisions. The need for agility, innovation, and adaptability has never been more crucial.

At FGX, with nearly two decades of experience working with South Africa’s largest retail centres, we continue to observe these monumental changes closely. The key question remains: how are these shifts influencing your business, and what can you do to stay ahead?

How Shopper Behaviour Has Changed Since 2020

1. The Rise of Omnichannel Shopping

Consumers today expect seamless integration between online and offline channels. While e-commerce saw exponential growth during the pandemic, physical stores have staged a comeback as experiential spaces. However, shoppers now demand:

• Click-and-collect services that offer convenience.

• Real-time inventory visibility across platforms.

• Personalised in-store experiences powered by data-driven insights.

Recent studies show that 73% of consumers use multiple channels during their shopping journey, blending physical visits with digital touchpoints like mobile apps and social media.

2. Sustainability is a Priority

Shoppers are no longer just buying products; they are investing in brands that align with their values. A strong focus on sustainability has led to an increased demand for:

• Eco-friendly products and packaging.

• Transparent supply chains.

• Ethical business practices.

A NielsenIQ report reveals that 78% of global consumers feel companies should act to help the environment, and this trend is particularly pronounced among younger generations.

3. The Dominance of Personalisation

Data analytics and artificial intelligence (AI) have unlocked new possibilities for personalising the shopping experience. From targeted ads to customised product recommendations, shoppers now expect brands to anticipate their needs. Hyper-personalisation has driven increased loyalty, with 80% of consumers more likely to make a purchase when brands provide tailored experiences.

4. Health and Wellness Are Key Drivers

The pandemic heightened awareness of health and wellness. Shoppers continue to prioritise products that promote physical and mental well-being, including:

• Immunity-boosting supplements.

• Fitness technology and wearables.

• Organic and locally sourced foods.

This trend underscores the need for brands to position themselves as contributors to a healthier lifestyle.

Six Shopper Behaviour Thresholds: Updated for 2025

The six thresholds identified in 2020 have evolved significantly. Here’s how they now shape consumer behaviour:

1. Proactive Wellness Buying
   Consumers are embracing proactive health management through technology. From wearable devices to personalised nutrition plans, wellness is now a tech-driven industry.

2. Digital-First Shopping
   The preference for online shopping remains strong. Grocery e-commerce, in particular, has witnessed a steady increase, with AI-powered assistants helping users find deals and manage budgets.

3. Experience-Driven Retail
   Rather than mere convenience, consumers now seek experiences in both online and offline spaces. Augmented reality (AR) and virtual reality (VR) are becoming mainstream tools for engaging shoppers.

4. Ethical Consumerism
   Ethical concerns have extended beyond environmental sustainability to include fair trade, worker rights, and corporate governance. Brands failing to align with these values risk losing relevance.

5. Subscription Models
   Convenience-driven subscription services for essentials, luxury goods, and niche products are growing, providing predictable revenue for businesses.

6. Post-Crisis Resilience
   Shoppers have developed a resilience mindset, with an emphasis on savings and preparation. Discount retailers and second-hand marketplaces are thriving as cost-consciousness grows.

Emerging Trends Shaping Shopper Behaviour

1. AI and Automation Revolutionising Retail

AI and machine learning are enhancing everything from inventory management to customer service. Generative AI tools are being used to create product descriptions, automate marketing campaigns, and even provide interactive customer support. This shift reduces operational costs while improving customer satisfaction.

2. Social Commerce

Social media platforms like TikTok, Instagram, and Facebook have become key retail channels. With features such as live shopping and integrated storefronts, brands are leveraging influencers and user-generated content to drive sales.

3. Decentralised Commerce with Web3

Blockchain and cryptocurrency technologies are enabling decentralised commerce, empowering consumers to own their data and participate in loyalty programs that offer real value. For instance, NFTs (non-fungible tokens) are being used for exclusive brand experiences.

4. Retailtainment

Retail spaces are evolving into entertainment hubs. From pop-up events to interactive art installations, physical stores are using creativity to attract foot traffic and create memorable brand experiences.

5. Enhanced Consumer Privacy

With data privacy concerns on the rise, shoppers are becoming selective about sharing personal information. Brands are responding by adopting privacy-first strategies and transparent data usage policies.

Strategies for Adapting to the New Normal

To thrive in this rapidly changing landscape, businesses must:

• Invest in Technology: Leverage AI, machine learning, and analytics to personalise experiences and optimise operations.

• Prioritise Sustainability: Embrace eco-friendly practices to align with consumer values.

• Enhance Customer Engagement: Create meaningful interactions across all touchpoints, both online and offline.

• Stay Agile: Monitor trends and adapt strategies to meet evolving consumer expectations.

• Foster Trust: Build credibility through transparency and ethical practices.

Key Takeaways

• Omnichannel integration is now non-negotiable for success.

• Sustainability and ethical practices are driving consumer loyalty.

• Personalisation and technology adoption are reshaping the shopping experience.

• Emerging trends like AI, social commerce, and retailtainment are shaping the future of retail.

Frequently Asked Questions (FAQs)

1. What is the biggest driver of shopper behaviour in 2025?
   Sustainability and personalisation are the key drivers, with technology playing a pivotal role in both.

2. How has online shopping evolved since the pandemic?
   Online shopping has become more experience-driven, with features like AR/VR, live streaming, and hyper-personalisation transforming the e-commerce landscape.

3. What role does AI play in retail today?
   AI is used for customer insights, inventory management, personalised marketing, and automated customer support.

4. How can small businesses adapt to these changes?
   By focusing on niche markets, adopting affordable technology solutions, and aligning with sustainable and ethical values.