Most UK retailers focus on investments to drive customer loyalty
The study also found that retailers are increasingly using AI to forge stronger customer connections. Of the businesses already using the technology, 46% highlight improving customer experience as their main focus.
Leveraging Generative AI, such as conversational chatbots, topped the list for tech investment, while 43% said they are using Gen AI to enhance online product search while the same percentage are using it to help resolve customer queries or complaints.
By contrast, last year's study pointed to more cautious AI adoption, with just 14% applying the tech to improve the online customer experience.
The new report also highlighted that retailers are not just focused on digital engagement strategies. Some 38% say they are planning to open new stores in the coming year, with beauty and fashion among the top sectors planning bricks and mortar investment.
And their motivation? A massive 88% believe experiential retail is key to driving footfall , including in-store events and augmented reality 'that allow shoppers to visualise products in their own environment'.
The study revealed that payments are also moving higher on the strategic agenda, with 74% of retailers surveyed agreeing customers now have increased expectations when it comes to the checkout experience.
Some 60% believe they would generate higher sales if they offered more payment options, with 32% describing their current payment experience as 'outdated'.
Dan Edelman, UK general manager, Merchant Services at American Express, said: 'UK retail's super-power has always been how the sector adapts to evolving customer demands. From investment in AI-powered personalisation, richer rewards programmes and a broader menu of payment options, merchants are prioritising ways to build lasting customer relationships.'
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Most UK retailers focus on investments to drive customer loyalty
This is in response to customer demand, with 64% of retailers believing customers now 'expect ' to be rewarded for shopping with them. The study also found that retailers are increasingly using AI to forge stronger customer connections. Of the businesses already using the technology, 46% highlight improving customer experience as their main focus. Leveraging Generative AI, such as conversational chatbots, topped the list for tech investment, while 43% said they are using Gen AI to enhance online product search while the same percentage are using it to help resolve customer queries or complaints. By contrast, last year's study pointed to more cautious AI adoption, with just 14% applying the tech to improve the online customer experience. The new report also highlighted that retailers are not just focused on digital engagement strategies. Some 38% say they are planning to open new stores in the coming year, with beauty and fashion among the top sectors planning bricks and mortar investment. And their motivation? A massive 88% believe experiential retail is key to driving footfall , including in-store events and augmented reality 'that allow shoppers to visualise products in their own environment'. The study revealed that payments are also moving higher on the strategic agenda, with 74% of retailers surveyed agreeing customers now have increased expectations when it comes to the checkout experience. Some 60% believe they would generate higher sales if they offered more payment options, with 32% describing their current payment experience as 'outdated'. Dan Edelman, UK general manager, Merchant Services at American Express, said: 'UK retail's super-power has always been how the sector adapts to evolving customer demands. From investment in AI-powered personalisation, richer rewards programmes and a broader menu of payment options, merchants are prioritising ways to build lasting customer relationships.'
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3 days ago
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Most UK retailers focus on investments to drive customer loyalty
Some 87% of UK retailers are funnelling investment into initiatives to power consumer loyalty and drive sales, according to new research from American Express. And many are turning to artificial intelligence (AI) to support the drive, while also opening more physical stores. The Amex annual study of 500 senior executives from a range of UK retailers of all sizes, reveals 'notably upbeat ambitions' with 82% aiming to grow their business this year, up 10 percentage points on a year ago. Respondents see ramping up loyalty as integral to driving that momentum, with 45% planning to either launch or enhance an existing loyalty programme this year. This is in response to customer demand, with 64% of retailers believing customers now 'expect ' to be rewarded for shopping with them. The study also found that retailers are increasingly using AI to forge stronger customer connections. Of the businesses already using the technology, 46% highlight improving customer experience as their main focus. Leveraging Generative AI, such as conversational chatbots, topped the list for tech investment, while 43% said they are using Gen AI to enhance online product search while the same percentage are using it to help resolve customer queries or complaints. By contrast, last year's study pointed to more cautious AI adoption, with just 14% applying the tech to improve the online customer experience. The new report also highlighted that retailers are not just focused on digital engagement strategies. Some 38% say they are planning to open new stores in the coming year, with beauty and fashion among the top sectors planning bricks and mortar investment. And their motivation? A massive 88% believe experiential retail is key to driving footfall , including in-store events and augmented reality 'that allow shoppers to visualise products in their own environment'. The study revealed that payments are also moving higher on the strategic agenda, with 74% of retailers surveyed agreeing customers now have increased expectations when it comes to the checkout experience. Some 60% believe they would generate higher sales if they offered more payment options, with 32% describing their current payment experience as 'outdated'. Dan Edelman, UK general manager, Merchant Services at American Express, said: 'UK retail's super-power has always been how the sector adapts to evolving customer demands. From investment in AI-powered personalisation, richer rewards programmes and a broader menu of payment options, merchants are prioritising ways to build lasting customer relationships.'
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Fashion, jewellery help save weak UK June e-tail, AI increasingly key
It raises the stakes for Amazon 's Prime Day this month with major discounting days (or four days intros case) such as this being key spending events. And its not just those selling via Amazon that could benefit as other retailers respond with their own promotional events as the July clearance sales period continues. So let's look at June spending in a bit more detail. We're told UK consumers spent £7.5 billion online in the period and while the overall annual rise of 1.4% wasn't anything to write home about, some categories saw healthy growth. On the 'explosive growth' list were video games leaping 94% due to the Nintendo Switch 2 launch, while gift cards rose 52% helped by Father's Day, and barbecues 42% (not surprising given the unexpectedly warm weather). There was also good news for jewellery, which was up 20%, and clothing that rose a healthy 8%. That clothing figure does tally with other reports that have suggested fashion sales were strong online in recent weeks, although it's unclear so far how much of this was at full price and how it will impact profits for the year as a whole. Interestingly, Adobe also said that retail is 'on the cusp of a GenAI revolution' as shoppers using and trusting AI assistants is on the rise. Compared with August 2024, traffic to retail websites from AI tools in June 2025 was up 1,200%, 'as consumers increasingly use the services to compare prices, compile shopping lists and research products'. That's important for a number of reasons, the key one of which is that 'AI-sourced traffic is high value'. When landing on retail pages from AI-sources, 'shoppers spend 23% longer on-site' than those who arrive directly, from social media sources or from traditional search. And AI-sourced conversion rates 'are surging as consumers use services as personal shoppers'. Conversion rates from AI sourced traffic have grown by 100% between April 2025 and June 2025 showing higher levels of consumer trust in the results from AI-search and highlighting the importance for online retailers to feature in the responses and links that AI search engines like ChatGPT and Google Gemini, Perplexity and others return to users. Not that AI use is universal just yet but it's growing fast and as recently as last October, the picture was very different. The conversion rate from non-AI sourced traffic back then was 89% higher than the conversion rate from AI-sourced traffic. But last month the conversion rate from non-AI sourced traffic was only 38% higher than AI-sourced traffic 'showing the increasing trust and use of AI and GenAI search as personal shoppers'. It all suggests that we're not far off from the two sources reaching parity and then AI-sourced traffic moving into the lead.
