When you think of modern retail, what does it look like? Shopping online from the comfort of home? A highly visual journey from search to product page to checkout? Or a trip to your favorite store rich with immersive in-store experiences?
For most shoppers, the answer is all of the above, and today’s retailers are working hard to deliver.
To get a fuller understanding of what retailers are prioritizing in 2025, Cloudinary commissioned a survey from independent research firm Researchscape International. Polling more than 400 IT, marketing, and business leaders in retail, the survey revealed an industry leaning in on modern, immersive experiences, online and in-store.
Here are some of the biggest takeaways from the report.
It’s long been known that the more tailored your message is, the more likely that message will drive ROI. Our survey reflects that attitude among retailers, 88% of whom say personalization is critical to their business strategy.
When asked more specifically about its value, 93% of our respondents estimated that personalization alone delivers anywhere from a 50-400% improvement in business outcomes.
Historically, though, personalization at scale has been difficult to offer. Resources, technical capability, and data overwhelm are just a few problems that retailers have faced in the past when trying to leverage the tactic. That’s why, increasingly, businesses are relying on automation to create, deliver, and measure the effectiveness of personalized messaging.
- 67% dynamically adjust content for language, currency, browser, and device.
- 65% account for geographic location.
- 50% optimize quality for bandwidth.
- 40-48% rely on generative AI to automate image and video editing tasks like background removal and replacement, captioning, smart cropping, and object removal.
Today’s online retailers are still feeling the growing pains associated with translating an inherently offline shopping experience into a digital one. From a previous Cloudinary survey, we already know that 30% of holiday shoppers who returned items did so because the item looked different in person than it did online, and 46% of holiday shoppers abandoned their cart because they weren’t sure if an item would fit properly.
What’s more, these customers claim that they are more likely to buy a product if they can see it as a 360-degree spin-set or a 3D model. So it’s no surprise that when we asked retailers about their plans to incorporate innovative media into their digital strategies, more of them shared that they’re investing in experiences that break down the barriers shoppers face online vs in person, like:
- Employing more video (62%).
- Prioritizing virtual try-on (53%).
- Building AR/VR experiences (46%).
- Rolling out 3D spin-sets (36%).
The European Accessibility Act (EAA) — legislation that aims to make digital experiences more accessible to EU citizens with varying abilities — takes effect in just a few months. Come June, European regulators have the authority to penalize companies that operate within the EU if they don’t meet standards set by member states. Getting a head start on achieving compliance doesn’t just help companies stay out of hot water — it also allows them to tap into a market worth $13 trillion globally — and our survey indicates that retailers are doing just that.
- 62% are optimizing content for screen readers.
- 57% are adding alt text for images and videos.
- 56% are providing closed captions.
The past few years have seen consumers, businesses, and regulators take a stronger stance on sustainability in retail. From curbing waste through sustainable packaging and paperless transactions to ensuring ethical and fair trade practices, retailers are adjusting to meet the expectations of their eco-friendly consumers. Our survey shows that:
- 50% are optimizing media delivery for lower energy consumption.
- 47% are recycling or repurposing digital content.
- 41% are tracking and reporting their digital carbon footprint.
View this infographic for more survey results.
With built-in accessibility features, support for innovative media like 3D models and 360 spin sets, and tools to scale video and image management, Cloudinary’s API-first visual solution allows retailers to capitalize on all the latest trends reshaping the space. Join our survey respondents and usher in a new age of retail.
Contact us to see how Cloudinary can help you streamline workflows, reclaim wasted budget and labor, and deliver responsive, personalized, quick-loading visuals to customers all over the globe.
