A Retail Times’ sponsored post
By Dan Edelman, general manager, UK Merchant Services at American Express
For decades, high streets have been synonymous with retail, destinations where local commerce thrived. But as consumer habits evolve, high streets continue to transition from retail centres into vibrant community spaces where people come together, socialise and seek out leisure activities.
Recent research from American Express in partnership with retail experts GlobalData* has revealed the shifting role high streets play in our daily lives – with the study suggesting that their future relevancy hinges on offering more than just functional shopping options. While a diverse range of retailers is still important to consumers – according to our research about two thirds (67%) value this variety of shops – almost one third (31%) of people say they now visit their high streets purely for social purposes.
The critical role of leisure and hospitality
Naturally, those visiting their local high street want a blend of big brands and independent stores, but are also seeking restaurants, pubs, and cafés. Over half (52%) of the consumers we surveyed say independent eateries are a key component for a ‘great’ high street experience, while two-fifth (40%) emphasise the importance of hospitality venues that help bring people together.
Our experience through running our Shop Small campaign in the UK for more than a decade reinforces this affection for small, independent venues and how they help bring vibrancy to local communities.
Leisure and entertainment options are another key attraction, drawing people to their local high streets. Our research found that locations offering cinemas, theatres, parks, and other leisure activities are most sought after. This is particularly important for younger generations, with Millennials and Gen Z consumers most likely to combine shopping with socialising. Consumers from these age cohorts were more likely to say that a decent mix of entertainment options make a high street great.
However, it’s not just about the younger generations; about two-thirds (65%) of shoppers in the ‘Boomer’ age cohort say independent restaurants or pubs contribute to a great high street. Whether it’s catching a film or dining out, people want their high streets to offer more than just retail therapy; they want rounded experiences.
Balancing fun and functionality
Yet, while leisure and dining are crucial, the practical role of high streets cannot be ignored. Running errands remains the number one reason consumers visit their high streets, with 67% of shoppers saying they go to buy something they need.
Accessibility is also a major factor; 62% of consumers say good parking is essential, and 38% believe that having a railway station nearby is key.
The future of high streets
The rapid evolution of technology has given consumers more ways to shop than ever before, and there are many leisure options away from the traditional high street setting. Despite this, consumers are still gravitating towards them. Almost half of those we surveyed said they visit their local high street at least once a fortnight, with one in 10 visiting daily.
Consumers are clear about what they want: a balanced mix of big-brand retailers and independent stores, combined with places to socialise and enjoy downtime. If local high streets can continue to adapt to these demands, they will remain valuable to the communities they serve. Almost three-quarters (73%) of consumers expect their local high streets to be as important to them a decade from now.
American Express is committed to backing merchants of all sizes on the British high street. While there is no one solution to guarantee ongoing success, our research demonstrates there are plenty of opportunities for collaboration among industry, government and other stakeholders to help deliver a winning formula of variety, convenience and leisure that people enjoy.
Click here to explore further findings from the American Express high streets research
*GlobalData conducted an online survey during May 2024, with a nationally representative sample size of 2,000 UK consumers, asking people how they feel about their high street, and which factors they feel contribute to a great high street generally. From analysis of this data, GlobalData identified the 15 most influential factors, and subsequently, via site visits and further research and analysis pinpointed 10 high street locations in Britain that had the most compelling combination of those 15 influential factors.
