Voice of Business Survey - Part 2 - Lessons from Retail Brands

Although the pandemic was one of the most bonkers things to happen to all of us in recent times (and there's been many bonkers things as of late too!), it created a boom for a lot of retail brands. Fast forward to 2025, and for many, things seem to be going in the opposite direction. Whilst there are lots of brands bucking the trend, we’ve heard from dozens of companies that are finding it really tough.

This is particularly evident on the high street, where we’re seeing more retail closures and vacant shops. Consumer confidence is low, many people are spending less and FDs are tightening up their purse strings. 

Retail brands are having to battle shifts in buying behaviours, increased competition and technological advancements.

We’ve been keen to find out what’s working, and quite frankly, what’s not working within the retail space. At the end of 2024, we launched our Voices of Business Survey and spoke to senior stakeholders in real businesses to uncover the biggest challenges, trends and strategies.

Here are some lessons from retail brands:

1. What’s going on in the retail space?

We asked: “What’s going on in your industry at the moment? Any notable trends having a big impact on your business?”

We were told:

• Market saturation is making it harder for brands to stand out.
• Marketing and visibility challenges persist across multiple industries.
• AI is disrupting search
• Traditional retail channels are consolidating, limiting distribution options.
• Oversupply in some industries is forcing price reductions.

What business leaders told us:

“In retail, the consolidation of retailers has changed how products are bought and sold.”

“We’re finding it much harder to be seen"

“We’re seeing a glut of product in the marketplace, creating pricing pressure.”

“The PPE industry is always evolving with new safety standards making it harder to reach our core audience.”

There’s a battle for visibility and demand

Across industries, brands are facing the same core issue - visibility. Even with great products and competitive pricing, reaching target audiences is increasingly difficult and way more expensive than it ever has been. Brands that once thrived on organic reach and traditional advertising are now struggling against changing algorithms and ever-growing consumer expectations.

Retail brands are having to deal with their direct competitors but also technology itself. The rise of AI-powered search results means that users are getting information directly from search engines, reducing website traffic and conversions. Brands that once relied on organic rankings are seeing diminishing returns.

Adaptability is key

Retail brands can’t afford to operate the way they did even two years ago. Market conditions aren’t particularly favourable. We believe there are a few priorities:

• Diversifying marketing efforts – Relying on a single traffic source like Google Ads is risky. Brands need to invest in multi-channel eCommerce marketing strategies, including partnerships, paid ads, influencer marketing, PR, organic and email. 
• Optimising pricing and product positioning – With oversupply in some industries, brands need smarter pricing models (subscriptions, bundles, pre-owned options) to maintain demand.
• AI-readiness – AI-driven search is changing how customers find products. Brands should start optimising for AI-driven discovery and leveraging automation with platforms like Hubspot CRM for customer engagement.
• Customer trust and loyalty – With so many options available, focussing on retaining customers is just as important as acquiring new ones. Loyalty programs, tracking and measuring customer service metrics and collecting user generated content / reviews / testimonials will help to cement your position in the marketplace. 

2. What are the biggest growth challenges for retail brands?

We asked: “What are the biggest barriers to growth in your industry right now?”

We were told:

• Cash flow constraints are limiting investment and innovation. Many businesses are struggling to balance growth ambitions with financial realities.
• Scaling operational efficiency without increasing costs is difficult. Brands are caught between expansion and profitability.
• Recruiting and retaining skilled talent is becoming a challenge. Hiring the right people, particularly in digital marketing and tech, is a growing concern.
• Consumer expectations are rising, with demands for better experiences at lower costs. Customer loyalty is harder to maintain as competition intensifies.
• Global economic uncertainty is making long-term planning more difficult. Inflation, supply chain issues and fluctuating demand are all adding complexity.

What business leaders told us:

“Cashflow vs. R&D is a constant challenge—growing while staying profitable is tricky.”

“Running both retail and distribution businesses side by side requires constant regulation checks and monitoring of exchange rates.”

“We’re just branching into hardware, which brings new complexities.”

“Finding people with the right skills and retaining them is a challenge.”

Sustainable growth is tricky

For many retail brands, growth is a double-edged sword. The push to scale often comes with significant financial strain, particularly as marketing costs rise and supply chains remain unpredictable. Businesses that once relied on steady consumer spending are facing the reality that purchasing behaviour is shifting due to economic concerns.

Talent acquisition is another mounting issue. Finding individuals with the right skill set is becoming more difficult.

At the same time, consumer expectations are higher than ever. Customers need seamless online experiences, faster delivery and more personalisation - without paying a premium. 

So how do you grow sustainably?

It seems sensible to balance ambition with operational efficiency. 

• Smarter hiring and outsourcing – Investing in automation / AI to undertake junior tasks, and leveraging freelancers or agencies can help brand's scale without adding excessive people overheads, mitigating short and long term risk.
• Stronger financial planning – Businesses need to be more strategic with budgets, focusing on high-ROI activities rather than spreading themselves too thin.

3. What strategic goals are retail brands setting for 2025?

We asked: “Have you set any goals or strategic targets for the next 12 months?”

We were told:

• Profitability remains the number one priority. Brands are adjusting their pricing, reducing costs and rethinking their business models.
• Some brands still lack a clear roadmap. Not every business has a well-defined long-term plan in place.

What business leaders told us:

“Becoming profitable would be nice.”

“Our main goal this year is to have all customers satisfied with our service.”

“We need to be more proactive with our website updates and online marketing.”

“Not really, even if we should.”

“We had a great year last year, largely due to the investments we made in technology - so much of the same.”

A shift from growth-at-all-costs

For years, many retail brands focused on rapid revenue growth, often prioritising sales volume over profitability. Now, the tide is turning. With rising customer acquisition costs and economic uncertainty, brands are being forced to refine their strategies, making predictable and sustainable profitability top priorities.

Meanwhile, digital transformation continues to be a common theme. Many businesses are adopting more sophisticated platforms like Shopify, CRM systems, automation tools and data-driven decision-making to improve efficiency and performance.

However, it’s clear that not all brands have a clear roadmap. Some businesses admit they are still operating without a well-defined strategy, which puts them at risk of stagnation while more proactive competitors move ahead.

Does your brand have a plan?

• Prioritising profitability – Getting granular with your cost of sale, focussing on GP and operating profit rather than just chasing higher turnover.
• Committing to a clear long-term strategy – Businesses without a defined roadmap will struggle to adapt as the market evolves around them.

4. How are retail brands adapting to digital transformation?

We asked: “What role does digital transformation play in your business strategy?”

We were told:

• Many brands still feel their website is underutilised. A lack of investment in UX, mobile optimisation, and content strategy is holding businesses back.
• Omnichannel strategies are becoming more important. Customers expect seamless transitions between online and offline experiences.
• Some businesses are still playing catch-up. Not every company has the budget or expertise to implement digital transformation effectively.

What business leaders told us:

“The company’s site is antiquated and cumbersome to update.”

“Our CRM investment last year transformed how we manage leads and customers.”

“We adjust our website 3-4 times a year, but we need to be even more proactive.”

“We’re looking into AI chatbots and automated workflows to improve efficiency.”

Digital maturity 

Many businesses that have started the year strong, have embraced digital as a core part of their strategy. 

However, many brands still struggle with digital adoption. Some are working with outdated websites that don’t reflect their brand or support their sales goals. Others haven’t fully integrated automation, missing out on opportunities to improve processes and increase efficiency.

Omnichannel experiences are another key differentiator. Consumers expect to be able to browse online, pick up / purchase in-store and access customer support seamlessly across multiple touchpoints.

How to lean on technology

• Website optimisation – A well-designed, mobile-friendly website is essential for brand credibility
• AI and automation – From chatbots to workflows, AI can help brands personalise customer experiences.
• Omnichannel experience – Seamless integration between online and offline channels is an expectation.
• Proactive digital updates – Don’t launch it and leave it. Regular updates, new content and strategic enhancements should be a continuous effort.

Summary

The retail space in 2025 is incredibly complex and challenging. Increased competition, evolving customer expectations and technological advancements are forcing brands to rethink their strategies. Retail brands that embrace change whether through digital transformation, smarter financial planning or innovative customer engagement strategies, will stand a better chance of making out the other side.

Key takeaways from our research:

• Visibility is a battle. Market saturation and changing algorithms mean brands must work harder to get in front of their audience.
• Technology is both a challenge and an opportunity. AI, automation, and digital tools can streamline operations, but businesses need the right strategy to make them work.
• Sustainable growth is the new priority. Profitability is taking centre stage, and brands are shifting away from aggressive expansion at all costs.
• Customer experience is the differentiator. Retention strategies, omnichannel experiences, and personalisation are essential for long-term success.
• Digital transformation is ongoing. A strong website, AI-supported marketing and seamless eCommerce experiences are crucial.

The next 12 months will be very interesting, and we’ll continue to unearth more lessons from retail brands in 2025.

Stay Tuned!