In the latest InternetRetailing webinar, Ian Jindal, chief executive of RetailX, sat down with Greg Kieran, solutions engineer director at commercetools, to discuss the InternetRetailing UK Fashion 2025 report – and explore how, despite all the current challenges, the fashion retail sector remains resilient.
Fashion retail is going through a tough time right now. The rising cost of living has hit the industry hard, with many UK consumers being syphoned off by the competing forces of ultra-cheap fast fashion retailers such as Shein and the rise of second-hand DTC marketplaces such as Vinted. Sales are flat and being eroded by inflation. Retailers are battling increasing costs across the board, including property, staff, raw materials, and global tax tariffs.
But all is not lost. Fashion retail is – as Ian Jindal, chief executive of RetailX, puts it – one of the most “battle-hardened and fit for purpose” sectors around today. And the challenges are not new – although, as Ian points out, they’re sharpened by the “accelerating forces of AI, sustainability and competition.” What this means for fashion retailers, as Ian says, is that “depending on where you sit, this is either a very exciting time or one of continual challenge.”
This was among the insights shared in Ian’s recent conversation with Greg Kieran, solutions engineer director at retail tech company commercetools. Both experts in their fields, Ian and Greg were discussing the InternetRetailing UK Fashion 2025 report, which explores the fast-changing landscape of fashion retail in great depth – and how the role of technology as both a huge opportunity and an ongoing challenge is at the very centre of the transformation going on in the sector.
Rapid pace of change
Greg described the current environment as “possibly the fastest moving time I’ve ever seen in technology,” largely due to the advent of Generative AI (Gen AI). A significant challenge for fashion retailers is that many have invested heavily in legacy POS and instore technology, and the current pace of change threatens any opportunity of maximising that investment, while also requiring them to invest further as the sector moves towards unified commerce – and simultaneously worrying that the sector will have been disrupted even further by the time they’ve committed to that investment.
AI is, of course, the largest disruptive force in ecommerce at the moment. The rise of AI-based answers in search results – or zero-click searches – means consumers are getting information from the initial AI response rather than clicking through to brand sites. This shift is, as Greg explained, already having a “significant impact on how consumers and brands… find each other,” with some reports suggesting a 25% decline in click-throughs to brand sites over the last 18 months.
Opportunity for brand storytelling
What’s clear, though, is that the decline of reliance on traditional SEO due to zero-click search is an opportunity for credible fashion brands with integrity and purpose to focus on becoming better storytellers. “The future will definitely be won by the brands who do have a strong story, who can drive loyalty – which isn’t just about giving discounts, it’s about adding value,” Greg said.
Despite the headwinds, the UK fashion sector continues to demonstrate resilience and adaptability. As Ian Jindal and Greg Kieran emphasise, the brands that will succeed are those that embrace change – leveraging technology, storytelling, and operational agility to stay competitive in an era of AI-driven disruption and shifting consumer expectations.
Want to explore these insights in depth?
Watch the full conversation between Ian Jindal and Greg Kieran in our exclusive webinar on the InternetRetailing UK Fashion 2025 report here. Download the InternetRetailing UK Fashion 2025 report here.
