The resurgence of in-person shopping is set to continue into 2025, a new survey has revealed, as 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., the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, 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.
The research has identified four key shopper trends that could impact the British high streets in 2025.
Gen Z
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 per cent 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%). Nearly one in three (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.
AI-enhanced experiences
The research reveals a growing appetite for AI-powered shopping solutions among British shoppers, with 35 per cent identifying as a ‘Personal Shopper’. These consumers look for curated, brand-driven shopping experiences, and 32 per cent 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 per cent 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
There’s a surge in secondhand 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.
‘Deals Shopper’
70 per cent 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.
“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,” Liam Crooks, managing director of EMEA at Lightspeed, commented.
“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.”
Russell George MS has been elected as the new Chair of the Cross-Party Group on Small Shops, succeeding Vikki Howells MS.
The decision was taken during the CPG's annual general meeting held on Wednesday (6). The meeting also saw discussion over the important role of access to cash in local communities.
Convenience store body Association of Convenience Stores (ACS) highlighted in the session the current access to cash trends across the convenience sector and the important role that cash plays in local communities and businesses.
Sarah McKenzie, Financial Conduct Authority (FCA), also joined the meeting to discuss the FCA's latest interventions to protect access to cash for communities in Wales and what this means for businesses across Wales. The CPG committee also heard from Tenby's Vince Malone, who shared his experience of running a Post Office in his local community and why cash is still important for his customers.
The core purpose of the group is to ensure that the voice of small shops is heard within the Welsh Parliament.
George said, “As a former small shop owner, I am delighted to be elected as Chair of the Cross-party Group on Small Shops. This role is vital in advocating for our local businesses and ensuring that their voices are heard. Access to cash is crucial for communities across Wales, especially in rural areas where many residents rely on cash transactions.
“We must work together to safeguard cash access, ensuring that the people of Wales can engage fully with their local economies and maintain the health of our high streets. I look forward to leading this group in promoting policies that support small shops and enhance financial inclusivity.”
British supermarket group Sainsbury's on Thursday (7) stuck to its full-year forecast of up to 10 per cent profit growth after a 3.7 per cent rise in the first half, with robust grocery sales offset by weakness in general merchandise.
Sainsbury's strategy of matching discounter Aldi's prices on hundreds of essential items and providing better offers for members of its Nectar loyalty scheme, financed by cutting costs, is paying off for CEO Simon Roberts.
The group is also benefiting from the continuing trend of Britons dining at home more, with sales of its premium Taste the Difference range up 18 per cent in the first half.
"Our food business is going from strength to strength and we're making the biggest market share gains in the industry, with continued strong volume growth," said Roberts, adding that he was expecting another "strong performance" at Christmas.
Sainsbury's has a UK grocery market share of 15.2 per cent, the latest data from researcher Kantar shows, up 40 basis points year-on-year. Britain's No. 2 grocer after Tesco said it still expected 2024-25 retail underlying operating profit, its preferred profit measure, of between 1.01 and 1.06 billion pounds, growth of 5 per cent to 10 per cent versus 2023-24.
The group said it also still expected to generate retail free cash flow of at least 500 million pounds.
For the six months to Sept 14, Sainsbury's made retail underlying operating profit of 503 million pounds, up from 485 million pounds in the same period last year.
Second-quarter like-for-like sales, excluding fuel, rose 4.2 per cent, having been up 2.7 per cent in the first quarter.
Grocery sales rose 5.3 per cent and general merchandise and clothing sales in Sainsbury's stores were up 2.2 per cent. However, sales at the Argos business fell 1.4 per cent.
"We remain confident of delivering strong profit growth in the full year, with continued leverage from Sainsbury's grocery volume growth and a stronger Argos H2 performance," said the group.
Small Business Saturday UK has launched its national roadshow that travels the length and breadth of the country ahead of Small Business Saturday on 7 December.
Kicked off in Lossiemouth on Monday (4 November), The Tour will travel over 3,000 miles across the UK for over the course of five weeks in an electric van to limit emissions and reflect the sustainable switches many small business owners are making as part of their vital role in the race to net zero.
The Tour will visit 23 different towns and cities, visiting small businesses, going behind the scenes and meeting the people running them, to shine a light on their invaluable contribution to local communities and the wider UK economy.
It will also offer a jampacked free daily programme of online training and insight - including webinars, mentoring and inspiring entrepreneurial stories - open to all small businesses.
Running from 4 November to 4 December, Monday to Friday at 11am, small businesses can sign up to as many free daily webinars as they want. Covering essential topics like marketing on a budget, time management, finance, sustainability and more, the webinars will offer practical tips and insights from industry experts.
As part of The Tour, the campaign is also offering 1-hour mentoring sessions with trusted small business experts. Sessions run from 4 November to 16 December. Businesses are being urged to book before the 16 November deadline to secure their spot.
Small Business Saturday UK is a grassroots, non-commercial campaign, which highlights small business success and encourages consumers to 'shop local' and support small businesses in their communities.
Details of the Tour locations, webinar programme and mentoring sessions are available here.
Mondelēz International has on Thursday announced that its Cadbury core sharing bars, manufactured in Bournville and Coolock and sold in the UK and Ireland, will be wrapped in 80 per cent certified recycled plastic packaging, which can be attributed to plastic sourced from advanced recycling technology.
This move is the result of a collaboration with Amcor, a global leader in developing and producing more sustainable packaging solutions and Jindal Films, an industry leader in the development and manufacture of recyclable films designed for flexible packaging.
Starting from 2025, in a phased approach, the project aims to cover approximately 300 million sharing bars across the UK and Ireland Cadbury core tablet portfolio. The move will see the highest percentage of recycled flexible plastic used within the Cadbury brand globally.
As part of this effort, 80 per cent of the plastic used in the packaging can be attributed to recycled plastic through mass balance and ISCC (International Sustainability and Carbon Certification) PLUS certification.
Consumers can also access a new platform via an on pack QR code to find out more about the sustainable packaging journey the Cadbury brand is taking and a consumer-friendly explanation about mass balance. The platform also features the Recycle Now locator from WRAP, enabling consumers to check local collection and recycling points for a wide range of packaging materials.
“This is the latest move in our journey to increase our use of post-consumer recycled plastic across our Cadbury tablets portfolio in the UK&I.” said Louise Stigant, SVP and UK&I managing director, Mondelēz International.
“We remain focused on our long-term aim to offer more sustainable packaging, in particular flexible plastic packaging using advanced recycling technologies. For us this is based around a three-part approach aimed at reducing our packaging, evolving, and designing our packaging to be recyclable and improving systems by supporting the development of UK infrastructure and capabilities to collect, sort and recycle it back into food contact packaging.”
Amcor’s AmFiniti solution converts post-consumer plastic waste into new products, providing Mondelēz International with a packaging solution that is made using 80 per cent certified recycled plastic. This innovative process uses advanced recycling material (ARM) that is suitable for food-grade applications.
Leading confectionery wholesaler Hancocks has unveiled ‘unbeatable’ deals for retail customers this Black Friday.
Their big Black Friday event will be held on 28 November from 8am-8pm.
For one day only, Hancocks are cutting the costs of confectionery treats, seasonal sweets, novelty favourites and big brands including Millions, Cadbury and Haribo.
Retailers have the chance to make big seasonal savings and stock up on the confectionery staples their customers love. All deals are available while stocks last.
On the popular classic Swizzels range, Hancocks is offering customers the chance to buy six and save £10.80.
Retailers can buy six, save £10.00 on Haribo pick and mix, including Giant Cola Bottles, Gold Bears, Happy Cherries, Rhubarb & Custard, Heart Throbs and Fried Eggs.
Novelty lines are also on offer this Black Friday. Customers can buy any three Kidsmania lines and save £5.00, including Peek-A-Poo Potty Pops, Shark Bite, Pooplets and Quick Blast Sour Spray.
From Crazy Candy Factory, retailers can buy one Unicorn Laser Pop and get one Submarine Dip n Lick for free.
Hancocks is also inviting retailers to stack and save with their double deal on Kingsway pick and mix favourites, with the offer of buy ten + bags, save 40p per bag or buy 20 + bags and save £1 per bag.
“Our Black Friday event … is a great opportunity for retailers to benefit from massive savings on the products they always restock,” Kathryn Hague, head of marketing at Hancocks, said.
“This year, we are offering great deals on some of our most popular lines and brands, including Crazy Candy Factory, Swizzels, Warheads, Haribo and Cadbury. This is a great chance to stock up, make your money stretch further and keep your customers happy.”