New American Express research reveals upbeat ambitions of UK retailers

New research from American Express has revealed that UK retailers are doubling down on providing a great customer experience, with major investment shifts in AI, payments and loyalty to drive growth planned in 2025.

With the retail landscape rapidly evolving, the latest findings spotlight where the sector is heading next - and how merchants are adapting to rising customer expectations.

The annual study, which surveyed 500 senior executives from a range of UK retailers of all sizes, reveals notably upbeat ambitions amid an evolving external landscape.

The research finds that nearly half plan to launch or enhance loyalty programmes, while AI adoption is surging – especially for personalisation and customer support. Rising customer expectations around payments and seamless service are driving these investments, as retailers seek to stand out in a rapidly evolving market.

The key points from the report include the news 87% of UK retailers are prioritising investments to attract and retain customers, with 82% planning to grow their business this year - up 10% year-on-year. Also, nearly half (45%) will launch or enhance loyalty programmes, with 64% saying customers now expect rewards.

In addition to this, the report shows that 46% of AI-using retailers focus on customer experience, with generative AI and product search (43%) as top applications for the tech. A further 38% of respondents said they plan to open new stores, whilke 88% think experiential retail is key to driving footfall

Dan Edelman (left), UK general manager for 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. We’re committed to supporting that ambition by connecting merchants to our loyal, high-spending card members, and providing insights and incentives that help drive greater sales.”