Conclusion Chapter -- 1 5 key challenges that will impact retail marketing in 2025 and beyond Chapter -- 2 What marketers need from Point of Sale partners to overcome these challenges
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Executive Summary
DS Smith and TMS Global commissioned research from White Space Strategy to understand the challenges facing retail marketers at brands and retailers, and to explore how PoS displays could help them overcome these challenges.
This research has been combined with a European Shopper research study of 2960 shoppers in the UK, Denmark, France, Germany, Sweden, and Poland* to understand how changing consumer preferences impact the goals of brands and retailers around retail display marketing.
5 major challenges that retail marketers will face in Europe in 2025 and beyond:
1. Getting shoppers’ attention
How do you get shoppers’ attention across a range of channels and touchpoints?
2. Purpose-Based Buying
How do you ensure that your products are displayed in a way that shows off the product’s authenticity and sustainability credentials?
3. Showcasing Product Superiority
How can you leverage displays to engage shoppers and push them towards a purchase?
4. Technological Integration
How can you use next-gen technology to create costeffective engagement with shoppers and beat the competition?
5. Retailer-Brand Collaboration
How do you manage the relationship between brands and retailers to maximise the impact of displays, particularly in seasonal campaigns?
PoS solutions can support retail marketers in simplifying supply chains, which allows for cost savings and greater consistency for brands and retailers.
And with award-winning designs and leading sustainability credentials, marketers can ensure their products get noticed by shoppers, and that key messaging is conveyed, which increases the likelihood of purchasing.
IntroductionWhy was this report commissioned?
DS Smith and TMS Global wanted to summarise the challenges faced by their partners and keep these challenges front of mind as they build solutions, globally and consistently across all markets.
What research underpins this report?
DS Smith and TMS Global commissioned a research project with White Space Strategy to uncover the challenges retail marketers will face in 2025 and beyond, and the role PoS display could play in overcoming these challenges.
White Space Strategy conducted 45 in-depth interviews, both with staff working on the shop floors and senior marketing decision makers at retailers and brands across Denmark, Poland, Italy,
Germany, the UK, Hungary, France and Spain, to get a comprehensive view on what is needed from Point of Sale solutions to achieve marketing goals, and what barriers they face.
White Space Strategy interviewed retailers and brands including:
DS Smith ran a European Shopper research study with 2960 shoppers in the UK, Denmark, France, Germany, Sweden, and Poland* to incorporate the consumer angle into the findings.
Overall, the report captures views from consumers, retailers, and brands.
Chapter -- 1
5 key challenges that will impact retail marketing in 2025 and beyond
5 key challenges that will impact retail marketing in 2025 and beyond
Intense competition for shoppers’ baskets means brands and retailers need to maximise the returns from retail marketing, and White Space interviewed experts to understand what they see the biggest challenges they would face in 2025 and beyond. 5 key challenges emerged from the research:
1. Getting shoppers’ attention
2. Purpose-Based Buying
3. Showcasing Product Superiority
4. Technological Integration
5. Retailer-Brand Collaboration consistently across all markets.
CHALLENGE 1: GETTING SHOPPERS’ ATTENTION
In today’s retail environment, shoppers are exposed to thousands of advertising messages, particularly through digital channels, before they even enter a store. Additionally, they now have more shopping options across several types of retailers. This means that products need to be especially eye-catching instore to compete with the pre-set buying intentions that shoppers bring with them.
The Consumer Angle: How can European marketers adapt to the different retail habits of shoppers?
“ Some PoS just isn’t ‘aggressive’ enough in terms of colours and images, it just doesn’t convince shoppers to buy the product”
The DS Smith/GWI European Shopper Survey shows distinct shopping patterns and preferences across several countries. In the UK, 24.7% of shoppers visit grocers 2-3 times weekly, compared to 13.7% visiting discounters with the same frequency. In contrast, Germany sees higher engagement, with 29.3% visiting grocers and nearly 25% at discounters regularly.
Marketers are challenged to find strategies that allow them to catch the eye of shoppers in a range of retail channels, and displays are a powerful tool to achieve that.
FRANCE:
“WHEN
YOU ARE SHOPPING, WHICH OF THE FOLLOWING WOULD MAKE YOU NOTICE A PRODUCT? PLEASE SELECT ALL THAT APPLY”
Displays
Retailer discounts or loyalty card coupons
CHALLENGE 2:
PURPOSE-BASED BUYING
Shoppers are increasingly considering factors like sustainability and authenticity, which can be highlighted through informative PoS displays and demonstrated through the material used for the display itself.
The Consumer Angle: Sustainability influences purchasing
The DS Smith/GWI European Shopper Survey shows 19.5% of shoppers in UK, DK, FR, DE, SE, and PL strongly agree they prefer to buy sustainable products. Similarly, nearly 18.8% of shoppers want brands to tell them what they are doing to support the environment and 16.2% are interested in buying products that are made from reused materials.
Product displays that emphasise sustainability increase likelihood of purchasing, with even the material of PoS displays impacting some shoppers.
“Point of Sale helps to articulate a brand’s purpose to consumers, explaining why they should choose us and not our rivals”
“TO
WHAT EXTENT DO YOU AGREE WITH THE FOLLOWING STATEMENTS ABOUT SUSTAINABILITY?”
% of respondents who strongly agree with the statement
I would prefer to buy products that are sustainable
Brands should tell me what they are doing to support the environment
Sustainability is important to me
Product packaging should highlight their sustainability credentials
I am interested in buying products made from reused materials (e.g. grass paper, recycled cardboard)
I look for products that have sustainable packaging
I would buy a brand from a product display if that display was recyclable
I look for icons and symbols to represent sustainable products
I would buy a brand from a product display if that display were made from recycled materials or repurposed materials (e.g. ocean plastics, other waste)
I would pay more for products that are sustainable
I would choose a brand because it was running a promotion linked to sustainability e.g. a charity donation or supporting the local community
CHALLENGE 3: SHOWCASING PRODUCT SUPERIORITY
Once a shopper considers purchasing a product, they need to be convinced that this product delivers on the practical factors that matter to them, and that this product beats the competition from other brands and/or private label alternatives.
The Consumer Angle: When shoppers make their choice, value is front of mind
The DS Smith/GWI European Shopper Survey shows the most important factor when shopping remains good value. However, consumers also want to buy products they see as easy to use and convenient for them to buy.
“Taking up space in-store reminds consumers that we’re there, and pushes us in front of our competitors in their heads”
In a crowded retail environment, ensuring products demonstrate their superiority in these areas will be crucial to being chosen over competitors.
“ON A SCALE FROM 1 - 5 WITH 1 BEING ‘NOT IMPORTANT AT ALL’ AND 5 BEING ‘VERY IMPORTANT’, HOW IMPORTANT ARE EACH OF THE FOLLOWING TO YOU WHEN CHOOSING
PRODUCTS WHILST SHOPPING?”
% of respondents who selected
- Very Important”
I have tried it before I know where it has come from It looks great It is good value It is easy to use I know what is in it It is convenient It makes me feel good
CHALLENGE 4: TECHNOLOGICAL INTEGRATION
“Interactivity, particularly through the integration of technology, is the biggest trend for the future within Point of Sale”
Once a shopper considers purchasing a product, they need to be convinced that this product delivers on the practical factors that matter to them, and that this product beats the competition from other brands and/or private label alternatives.
The Consumer Angle: Can technology replace samples and demonstrations?
DS Smith/GWI European Shopper Survey shows that sampling plays a key role when consumers are considering a purchase; 48% of shoppers would consider buying a product if they received an in-store sample.
A further 26% of shoppers want to see product demonstrations in-store. The question raised to marketers is “Can you use technology like AI and AR to create the level of engagement you get through samples and product demonstrations, but at a lower cost and at greater scale?”
“PoS that includes product samples are becoming ever more popular. I know Airwick created a display which sprayed the scent at shoppers as they walk past. This captivates shoppers and will be more prevalent in the future”
CHALLENGE 5: RETAILER-BRAND COLLABORATION
“We really like displays that we can use for one product and then change the format and then use for another 2 weeks with a different product”
The evolving dynamics between retailers and brands mean PoS displays need to be flexible and adaptable to various promotional strategies and collaborations.
The Consumer Angle: Seasonal events provide an opportunity for retailer and brand collaboration
DS Smith/GWI European Shopper Survey shows that when it comes to impulse purchases price naturally plays a significant role, with 69.2% of shoppers citing this as a factor.
However, 13% of shoppers will impulse purchase due to seasonal retail events. Christmas was the most important event to surveyed shoppers; however,
Mother’s Day, Easter and Summer were also all significant seasonal events, highlighting how seasonal promotions and displays can play an important role throughout the year.
“WHICH OF THE FOLLOWING WOULD CONVINCE YOU TO BUY AN ITEM THAT YOU WERE NOT PLANNING TO BUY WHEN YOU ENTERED THE STORE?
PLEASE SELECT ALL THAT APPLY”
Examining the role Point of Sale can play
marketers
There was a price discount
I was offered a free sample or demonstration
It was promoted alongside another product I was planning to buy
There was a competition, reward, or gift with purchase
It’s cheaper to refill or re-use the item
It was part of a retail event e.g. Easter or Halloween
I saw a display away from the shelf
“WHICH
OF THE FOLLOWING EVENTS ARE RELEVANT / IMPORTANT TO YOU? PLEASE SELECT ALL THAT APPLY”
