As the UK’s high streets adapt to shifting consumer behaviors, a new generation of tech-savvy, social-media-driven shoppers is set to breathe new life into brick-and-mortar stores. According to new research by Lightspeed Commerce Inc. (NYSE | TSX: LSPD), a leading commerce platform enabling merchants to offer seamless omnichannel experiences, the revival of in-person shopping is expected to gain momentum in 2025. This resurgence is largely fueled by social media trends and the rise of ‘Social First Shoppers’—individuals who spot trends online and head to stores to make purchases.
A Promising Outlook for Physical Retail Stores
The research shows that nearly 79% of British shoppers currently frequent physical stores, with 40% planning to increase their in-store shopping in the coming year. As merchants look for ways to capitalize on this growth, these insights offer hope for the high street, indicating that the shift toward online shopping has not completely eroded consumer interest in traditional retail.
Liam Crooks, Managing Director of EMEA at Lightspeed, comments on the findings:
“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 to show they really know their customer, and understanding the motivations around ethical purchases, retail in the UK can once again thrive in 2025.”
Key Trends Expected to Shape Shopping in 2025
Lightspeed’s research highlights four critical trends poised to shape UK high streets in the coming year:
1. Gen Z to Power the High-Street Revival
Generation Z is emerging as the most optimistic demographic when it comes to shopping habits. Nearly a quarter (24%) of Gen Z shoppers are spending more than they did 12 months ago, and 28% attribute their increased spending to impulsive social media-driven purchases. Platforms like TikTok (59%), Instagram (53%), and Facebook (24%) have significant influence, with 31% of Gen Z respondents admitting they are inspired by social media to visit physical stores to find trending items.
2. AI-Enhanced Shopping on the Rise
British shoppers are becoming more comfortable with AI-powered solutions, with 35% identifying as ‘Personal Shoppers’ who seek curated, brand-driven experiences. The appeal of AI is evident, with 32% of consumers open to its integration into their shopping journeys. Looking ahead, 39% of shoppers are most excited by AI-powered personalised discounts, followed by innovations such as self-checkouts (41%) and virtual fitting rooms (26%).
3. Preloved Goods Gaining Popularity
The demand for second-hand and reconditioned items is surging, especially among those under 45. Cost-effectiveness (61%) and environmental concerns (35%) are driving this trend, which is set to continue in 2025. With nearly a quarter (24%) of shoppers now opting for preloved items, this shift reflects growing resistance to fast fashion and an embrace of sustainability.
4. Deals Shoppers Dominate the Market
In 2025, discount hunters will remain a formidable force on the high street. A staggering 70% of consumers identify as ‘Deals Shoppers’, actively seeking discounts and promotions. Whether through 2-for-1 deals (51%), switching retailers for better prices (39%), or waiting for sales (24%), this group is determined to make the most of their shopping budgets.
The Future of the UK Retail Sector
The insights provided by Lightspeed’s research offer a glimpse into the future of UK retail, where the high street could thrive once again. Retailers that adapt to the demands of Gen Z, embrace AI-enhanced shopping experiences, and cater to the rising interest in sustainable fashion will be best positioned to succeed.
