The Advancements of Retail Tech in 2025

Technology has been helping to shape the retail sector for years. However, in 2025 we’ll see that impact soar as developments become more advanced and arrive faster than ever. The most significant changes will stem from the need to streamline basic processes, like tracking point-of-sale (POS) activations, along with a desire to harness new technology to better know and reach consumers.

A Growing Market and Tech Investments

It's surprising to hear brands say they’ve lost POS displays, a situation costing both time and money, while stalling campaigns. A 2021 survey by Retail Consulting Partners found over half of POS software and hardware systems in use were more than five years old. So it’s encouraging that Fortune Business Insights projects the POS market to grow from $33.41 billion in 2024 to $110.22 billion by 2032. That’s a compound annual growth rate of 16.1 percent.

That said, it’s clear that investments in the technology will grow. This will make the use of modern POS platforms table stakes, enhanced by cloud-based software-as-a-service (SaaS) models that leverage artificial intelligence (AI).

Control and Competitive Advantages

Another development we can expect will be increased use of trace technology. By integrating systems that monitor POS locations, companies can prevent revenue loss from undelivered signage and displays, while improving profit margins through guaranteed brand exposure.

Furthermore, the technology can track and monitor all transactions made through a POS system, yielding a digital record of every sale and an array of corresponding details. This enables retailers to see what items were purchased, date and times of transactions, payment methods, and more. As a result, they can unearth valuable sales trends, better handle inventory, and identify fraud. We’ll increasingly see retailers using trace technology to gain a competitive advantage and secure a place in the future.

IoT and Enhanced Experiences

Integrating Internet of Things (IoT) devices with POS systems is quickly proving an effective way to enhance customer experiences and gather consumer insights. It can help businesses deliver highly targeted marketing and personalized interactions. For instance, IoT-enabled beacons can find customers in or near their stores and send offers to their smartphones to reach them when they’re ready to buy.

The technology can identify which displays attract the most attention from shoppers, too. This can be invaluable for creating future POS displays focused on what resonates most with consumers. It also paves the way for a host of new features. One example is smart shelves with weight sensors. These enable real-time tracking of inventory that can leverage POS systems to provide updates on on-site product availability. This means products are there when customers want them, improving their experiences and increasing sales.

Empowered and Driven

As such technology becomes more commonplace in 2025, even greater developments will be introduced. This will empower organizations to create stronger marketing strategies, driven by newfound capabilities that will engage consumers and lift in-store sales like never before.

Lynne Laba is head of U.S. for Communisis VOX. She is based in the Greater Chicago area.