In recent years, the Great British high-street has been facing challenges with the rise of online shopping. However, a new study by Lightspeed Commerce Inc. (NYSE | TSX: LSPD), a leading one-stop commerce platform, has revealed that the younger generation is bringing a renewed interest in brick-and-mortar retail stores.
The research, conducted in October 2024, shows that 79% of Brits currently shop in physical stores, with 40% planning to increase their in-person shopping in the coming year. This trend is driven by the rise of ‘Social First Shoppers’, defined as those who discover trends on social media and then visit physical stores to make their purchases.
According to the study, Gen Z is the most optimistic age group in the nation, with 24% of them spending more money now than they did 12 months ago. The influence of social media on this group is evident, with 28% admitting to making more impulsive purchases due to seeing trends on social media.
The platform with the biggest impact on social purchases for Gen Z is TikTok (59%), followed by Instagram (53%), and Facebook (24%). This trend is expected to continue, with 31% of Gen Z respondents saying they will be influenced by what they see on social media and then head to the high street to find the item.
The study also reveals a growing interest in AI-powered shopping solutions among British shoppers, with 35% identifying as ‘Personal Shoppers’ who seek curated, brand-driven shopping experiences. In addition, 32% are comfortable with AI being integrated into their shopping experience.
Looking ahead to 2025, AI-powered personalised discounts are the most exciting prospect for shoppers, with 39% specifically looking for tailored promotions. Other in-store innovations, such as self-checkouts (41%) and virtual fitting rooms (26%), are also seen as a draw for tech-savvy shoppers.
The research also shows a surge in the popularity of preloved items, with those under 45 being the most likely group to shop for second-hand or reconditioned goods. The primary motivations for this trend are cost-effectiveness (61%) and environmental concerns (35%). With the growing opposition to fast fashion and the recurrence of fashion trends, 24% of shoppers are now buying second-hand or refurbished goods, and this is expected to continue into 2025.
The study also identifies a significant group of ‘Deals Shoppers’, making up 70% of consumers surveyed. These shoppers actively seek out discounts, offers, and promotions, and are more likely to take advantage of 2-for-1 deals (51%), switch retailers for better prices (39%), and wait for sales (24%) before making purchases.
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 personalised deals and offers that show they really know their customer, and understanding the motivations around ethical purchases, retail in the UK can once again thrive in 2025.”
To learn more about Lightspeed, visit www.lightspeedhq.co.uk.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.