Once the lively epicentre of every town and city, the UK high street has fallen on harder times. Rising costs of maintaining a retail space, combined with changing consumer habits and preferences has left many premises vacant, with online shopping and out of town shopping centres proving more inviting. The COVID-19 pandemic also greatly impacted retailers, between March 2020 and March 2022 over 9,000 retail outlets closed on British high streets.

Understanding how consumers prefer to shop in a post-COVID world, what motivations and barriers influence their habits and behaviours, is key to navigating our new retail landscape, and perhaps re-envisioning what roles the high street plays today.

Our recent insights survey found that 2 in 3 consumers claim to do 50% or more of their non-food based shopping online. This rises to a huge 76% among 18-39 year olds, although fewer than 10% claim to exclusively shop online.

However, when asked about their preference for online vs. in-store shopping across various categories including beauty, skincare, clothing and furniture, a consistent majority of consumers expressed a preference for the in-store experience, even the younger shoppers.

Top categories for shopping in person:

1. Skincare – 60%
2. Clothing and shoes – 58%
3. Furniture and homeware – 57%
4. Accessories – 53%
5. Beauty products – 52%

The implication is that although online competition is stiff, the desire to shop in-store among consumers is still there, as is the opportunity for retailers.

Late night openings, offering convenience for 9-5 workers, appealed to almost a quarter of surveyed consumers. Around a third of consumers want to see more cafes and restaurants, and 21% called for more leisure and entertainment spaces. What this amounts to is a desire for the resurrection of the high street as a destination that focuses more on experiences than purely transactions.

Many larger retailers are already harnessing the power of experience to bring shoppers into stores. The smartest brands are bringing together moments that are not easy to replicate digitally, yet consumers would still want to share online.

For example, Primark’s largest stores now include cafés with changing seasonal collaborations celebrating pop culture; providing limited runs of social media friendly moments in combination with a chance for shoppers to rest and recharge.

The London toy store Hamleys delivers on-brand child friendly experiences through meet and greets with characters and a daily store-opening ceremony but also doubles as a creative event space, offering birthday party and sleepover packages.

Shopping in-store brings consumers face to face with your brand, allowing for discovery and charm that is hard to find online. For the moment, a physical presence is still a very valid prospect for retail brands – particularly if it offers something that can’t easily be replaced through the relative convenience of online shopping.

Consumer opinion is split on whether it’s still possible for the high street to make a comeback, with almost half of UK adults surveyed believing empty retail units should be converted to housing instead. For the high street to thrive once again, retail brands will need to approach their in-store experience with both creativity and innovation, underpinned by a solid understanding of who their customer is and how they want to shop and engage with brands. Market research techniques like segmentation or brand tracking can be the ultimate secret weapon in deciphering where to focus resources.

Take your retail brand further with Clusters

Market research is crucial for retail brands aiming to secure a competitive advantage. By adopting these strategies, retailers can more effectively meet their customers’ needs, driving growth and success.

At Clusters, we’re committed to providing the expertise and support necessary to action these insights effectively. To learn more about our retail experience, visit our dedicated retail page or contact us today.