There’s no denying that remarks about the death of the high street are overblown.
Physical retail has seen a resurgence in recent years as customers are heading back to bricks-and-mortar stores to seek out service, experience and the reassurance that comes with touching, feeling and trying out products.
In partnership with American Express, Retail Gazette brought together industry leaders from retailers including Primark, Sainsbury’s, John Lewis and B&M and trade bodies including UK Hospitality and BIRA to discuss what makes a great high street, and how it can be revitalised through collaboration, data, and adapting to new shopping trends.
We summarise the main points made at the discussion.
What shoppers want from the high street
To explore what the factors are that gives a high street great shopper appeal, American Express commissioned GlobalData to undertake an extensive consumer research project.
It found that the high street is still a big part of consumers’ lives with two thirds of those surveyed saying they visit their local one at least once a week.
But what draws them to the high street? The research found that variety is the spice of life with two thirds (67%) of shoppers claiming a good mix of shops is key ingredient for a “great” high street.
The variety of stores wanted include independent retailers. This desire is particularly strong in the Boomer generation (those aged 60-78) where almost three-quarters expect to see local independent stores on a great high street, compared to just 27% of Gen Z (aged 12-29) and 43
However, retailers such as Boots, M&S and Primark feature highly within the list of retailers that consumers would expect to see on a great high street which points to the need for high streets to get the balance right between big brands and independents.
American Express UK general manager, merchant services Dan Edelman pointed out that the variety consumers seek extends beyond retailers.
“People want not just shops but leisure, entertainment, food and hospitality. In some of the most successful high streets, vacant shops have been replaced by leisure and experience-based tenants,” he said.
One roundtable attendee, the stores director of a fashion retailer, concurred: “Our customers are visiting the high street for a day out. It’s how they’re spending their Saturday – a form of entertainment. They’re visiting the cinema, having a meal, and browsing and shopping too.”
This makes the high street distinct to other shopping destinations such as retail parks, which typically attract mission-based shoppers, therefore a wider array of leisure and hospitality options is critical.
Fun versus the functional
Retailers are faced with consumers that want many different things from the high street.
For example, the American Express research highlighted a notable generational divide.
The older Boomer generation, who are both time and disposable income rich, are far more concerned with completing the functional task of shopping for items that they need, than seeking out experience and entertainment.
In fact, they were the generation least likely to visit the high street to eat out or for leisure, according to the consumer survey. There is also a far stronger desire for services such as banks and post offices in these older age brackets.
Perhaps unsurprisingly, Gen Z and Millennial shoppers were the demographics most likely to visit their local high streets for leisure, eating out or social arrangements.
However, one department store retailer pointed out that preferences do not just change based on age. “It is split attitudinally and it is spilt based on mission as well. You could be looking for fun in one scenario and functional in others,” he said.
Interestingly, it is the more functionally-minded Boomers that are least satisfied with the shopping offer on local high streets.
This could in part be attributed to the collapse of retailers that were once key destinations for this generation, such as BHS and Debenhams.
The contrasting wants and needs of consumers creates a challenge for retailers.
One department store retailer talked about the need for “light and shade” in its stores as it balances the theatre and experience that some shoppers crave, with the speed and convenience of others.
A fashion stores director, who termed her business “an experience-led retailer”, noted the complexities of serving very different customer needs.
“Some people want to have fun in stores, others know exactly what they want and want to get in and out as quickly as possible. Our team is pivotal in understanding the psyche of the customer as soon as they walk through the door. Fundamentally we have to understand our customer,” she said, pointing out that its store assistants were critical to this.
In truth, the high street needs to appeal to all – the functionally-minded and the experience-hungry – the retailers in the room agreed, and the right balance needs to be struck between experience and convenience.
But constant adaptation is needed to ensure it stays up-to-date with ever-changing consumer needs.
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A cohesive high street
Participants also discussed the importance of data in understanding customer behaviour and making informed decisions about high street retail.
With data taking centre stage in retail now more than ever, attendees agreed it is crucial for retailers to leverage insights to make informed, localised decisions while ensuring consistency to stay both competitive and relevant.
Edelman referenced the granularity of Cardmember data that Amex provides to its merchant partners, allowing them to design personalised offers with high redemption rates. He said: “We’re seeing more merchants lean into our Amex Offers programme because it is highly targeted in reaching the right customer, at the right time.”
One attendee highlighted how the high street in his hometown had been regenerated by a shift in focus to value retail and hospitality offerings, which resonated with the demographic there.
Transport and accessibility is also a crucial factor in the eyes of consumers. Good parking options is the second most popular factor for what makes a good high street – beaten only by variety of shops – with almost two thirds of people (62%) deeming it important.
Meanwhile, almost a third (31%) of those surveyed say good public transport links are the practical aspect they like the most about their local high street.
The retailers at the roundtable universally agreed that good, inexpensive parking options are critical to the success of high streets, and added that accessibility amenities such as toilets and baby changing were also important.
Furthermore, almost a third (32%) of respondents to American Express’ survey said they liked the nice places to sit and catch-up with friends or family on their local high street.
Many of these big shopper pulls toward the high street are things that individual retailers cannot control and laid bare the need for a cohesive plan for our town centres.
One fashion retailer said the key to a successful high street is about “place setting, rather than chucking a few shops in there”.
The senior leaders in the room highlighted that this can often be challenging due to the disparate ownership structure of the high street.
Many individual landlords making leasing decisions in isolation can often lead to a lack of variety – which we know is a crucial factor for consumers – and high streets flooded with many similar occupants such as estate agents and hairdressers.
The retailers said both councils and business improvement districts can play a role in developing and driving a cohesive masterplan.
One attendee highlighted how local authorities can have a big impact on the high street by implementing small changes such as introducing free parking.
Newcastle City Council is one local authority that has implemented initiatives of this ilk around the Christmas period to encourage footfall to the town centre.
The council has gone one step further to ensure a vibrant retail scene. To minimise vacant units, it is working with Eldon Square, the shopping centre in the heart of Newcastle, to “accelerate and facilitate the delivery of a series of major new leasing deals, whilst offering significant benefits to the city centre and local community”.
The new partnership led to both Sephora and Next signing deals for new stores in the centre this year, with Next taking on the empty Debenhams unit.
High street regeneration
As one of the most visited shopping areas in the world, London’s West End was also discussed.
One retailer highlighted the advantages of being located near Regent Street, where the Crown Estate – which owns all of the famous shopping street – has a clear vision and significant influence, which benefits local businesses.
However, it’s not just world-famous high streets that can benefit from a cohesive vision.
Gloucester, which consumers ranked as their second best city high street in the American Express study behind only Cardiff, has undergone an impressive regeneration in recent years.
Like many high streets, it had been hit by store closures, including its flagship Debenhams store, however a mixture of government funding, and private and public sector investment along with a big vision for what it wanted to achieve has helped Gloucester thrive again.
The former Debenhams store in being redeveloped into an education hub for the University of Gloucester, while it is revamping the Kings Square and King’s Walk Shopping Centre in the city centre, and improving transport, including the train station.
Gloucester town centre
A new £107m business hub is also being built, which will include a hotel, rooftop bar, a gym, a multi-storey car park and 135,000 sq ft of office space aimed at attracting cyber businesses.
The consumer study found that Gloucester currently provides “more function than flair”, as it ranked highly on areas including choice and variety, the prevalence of independent retailers and eateries, along with its leisure options.
One negative in the consumer ranking was vacancy rates, however, local officials said that the regeneration was “attracting more retailers to the city” and called out the willingness of all partners involved in the town centre to work together as the key to Gloucester’s successful regeneration.
Although this can be challenging to make a reality, as Gloucester’s success shows, the impact of a cohesive plan and all parties working together can be dramatic.
Ultimately, consumers want a vibrant high street. The majority of consumers surveyed by American Express believe the high street will still play an important role in their daily lives in 10 years’ time.
The challenge for retailers, landlords and placemakers is that what people want from high streets is changing. No longer is it simply a place to shop. It’s a place to eat, meet, and be entertained, as well as pick up everything they might need.
The high streets that adapt, flex and meet these myriad needs will thrive for years to come.
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