Gen Z Set to Uplift the UK High-Street in 2025

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As the Great British high-street continues to evolve, a generation of savvy, younger shoppers is breathing new life into brick-and-mortar retail stores. According to the latest research by Lightspeed Commerce Inc. (NYSE | TSX: LSPD), the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, the resurgence of in-person shopping is set to continue into 2025, driven by social media trends, and the rise of the ‘Social First Shoppers’, defined as those who spot a trend on social media and visit in store to purchase.

The research has revealed that nearly eight in 10 Brits (79%) currently shop in physical stores, with four in 10 planning to increase their shopping on the high-street in the coming year. This offers optimism for the retail sector, as merchants look for ways to attract and retain consumers.

The research has identified four key shopper trends that could impact the British high streets in 2025.

Gen Z Could Help Uplift the High-Street in 2025

Gen Z are the most optimistic age group of the nation, with almost a quarter (24%) of Gen Zers spending more money now than they did 12 months ago, and with 28% saying they make more impulsive purchases, thanks to social media.

#TikTokmademebuyit reigns true as it is the platform with the biggest influence in social purchases amongst this age group (59%), followed by Instagram (53%), and Facebook (24%). 31% of Gen Z respondents will be influenced by what they see on social media and subsequently head to the high street to find the item they’ve seen on social media.

Shoppers Excited by AI-Enhanced Experiences

The research reveals a growing appetite for AI-powered shopping solutions among British shoppers, with 35% identifying as a ‘Personal Shopper’. These consumers look for curated, brand-driven shopping experiences, and 32% are comfortable with AI being integrated into their shopping experience.

Looking ahead to shopping in 2025, AI-powered personalised discounts top the list of what excites shoppers, with 39% looking specifically for tailored promotions. Other in-store innovations, such as self-checkouts (41%), and virtual fitting rooms (26%) are also seen as a pull for tech savvy shoppers.

Preloved Items are Increasing in Popularity

There’s a surge in second hand goods, with those under-45 being the most likely group to shop for pre-loved or reconditioned items, primarily driven by cost-effectiveness (61%) followed by environmental concerns (35%). With recurring fashion trends and growing opposition to fast fashion, nearly a quarter (24%) of shoppers are now buying second-hand or refurbished goods, which is set to continue into 2025.

The ‘Deals Shopper’ Takes Centre Stage

70% of consumers surveyed identify themselves as ‘Deals Shoppers’ meaning they actively seek out discounts, offers, and promotions, such as taking advantage of 2-for-1 deals (51%), switching retailers for better prices (39%), and waiting for sales (24%) before hitting the high street..

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 to 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.

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