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“UK High-Street Poised for Revival by Gen Z in 2025”

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October 22, 2024
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“UK High-Street Poised for Revival by Gen Z in 2025”
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New research by Lightspeed Commerce Inc. (NYSE | TSX: LSPD) reveals that brick-and-mortar stores are experiencing a resurgence in popularity, thanks to a generation of savvy, younger shoppers. The one-stop commerce platform, which empowers merchants to provide the best omnichannel experiences, predicts that this trend will continue into 2025, driven by social media and the rise of “Social First Shoppers.”

According to the research, nearly eight in 10 Brits (79%) currently prefer to shop in physical stores, with four in 10 planning to increase their in-store purchases in the coming year. This offers hope for the retail sector as they navigate the changing landscape and find ways to attract and retain consumers.

The study identified four key shopper trends that could have a significant impact on the British high street by 2025.

One of the key drivers of in-store shopping is the influence of social media. The research found that Gen Z, the most optimistic age group in the nation, is spending more money now than they did 12 months ago, with 28% making impulsive purchases due to social media. Platforms like TikTok (59%), Instagram (53%), and Facebook (24%) are the top influencers for this group, with 31% saying they are influenced by social media and subsequently visit the high street to purchase the items they see online.

The study also revealed a growing interest in AI-powered shopping solutions among British shoppers. 35% identify as “Personal Shoppers” and look for curated, brand-driven shopping experiences. 32% are comfortable with AI being integrated into their shopping experience. Looking ahead to 2025, AI-powered personalized discounts (39%) are the most exciting innovation for shoppers, followed by self-checkouts (41%) and virtual fitting rooms (26%).

The research also found a surge in second-hand shopping, with those under 45 being the most likely group to purchase pre-loved or reconditioned items. The top motivations for this trend include cost-effectiveness (61%) and environmental concerns (35%). With growing opposition to fast fashion, 24% of shoppers are now buying second-hand or refurbished goods, a trend that is expected to continue into 2025.

Another significant group identified in the study is the “Deals Shopper,” with 70% of consumers surveyed falling into this category. These shoppers actively seek out discounts, offers, and promotions, such as 2-for-1 deals (51%), switching retailers for better prices (39%), and waiting for sales (24%) before making a purchase.

Liam Crooks, MD of EMEA at Lightspeed, says, “It’s encouraging for retail businesses to hear that people are looking to shop in-store next year, and even more exciting to know that they can make strides in converting business by taking steps to look at what ‘makes’ the shopper experience. From simple and easier AI-powered tech to personalized deals and offers, retail in the UK can once again thrive in 2025.”

To learn more about Lightspeed and their one-stop commerce platform, visit www.lightspeedhq.co.uk.

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