Creating a winning formula for high streets

The retail landscape has seen a rapid transformation in recent years, spurred by technological advancements and shifting consumer habits.

Yet, amid these changes, one constant remains; the central role that vibrant high streets play in local communities. But what makes for an appealing, thriving high street and what factors encourage people to visit regularly and spend?

To unlock these insights, American Express recently commissioned research in partnership with retail experts GlobalData [1] to identify what, according to the public, makes for a ‘great’ high street experience. The study also highlighted Britain’s top 10 most appealing high streets, outlining the key factors that contribute to their success.

Choice at the heart of high streets

Our research found that the core of a great high street is variety. Shoppers prioritise a diverse mix of retailers over even practical considerations like parking.

In fact, about two thirds (67%) of consumers said that variety is crucial to their high street experience. This includes a blend of independent shops, big-brand retailers, and hospitality venues such as pubs, cafes and restaurants.

Notably, 54% of shoppers told us that local independent stores are a key part of what makes for a great high street, while a similar proportion (52%) emphasised the importance of independent hospitality venues to an enjoyable high street experience.

This affinity for small and independent businesses is something we see every year as part of our Shop Small movement and our continued support of the Small Business Saturday campaign, which this year takes place on December 7 and encourages people to spend with these much-loved firms.

High streets as leisure hotspots

We know that consumers today are looking for more than just a shopping trip when they visit their local high street. They are seeking more rounded experiences; and opportunities to socialise, dine and be entertained.

Locations with cinemas, theatres and other leisure outlets are becoming essential to a thriving high street.

Gen Z consumers are most likely to combine functional shopping with leisure activities, the research found. In fact, the research showed that over a third (36%) of consumers feel leisure and entertainment options are an important feature of what they think makes a ‘great’ high street.

According to our study, Cardiff’s Queen Street, Gloucester’s central shopping area, and Chester’s Eastgate Street ranked as the top three most appealing high streets, with their diversity of retail, hospitality and leisure options being a key contributor to their popularity.

Balancing fun and functionality

Despite a rising demand for leisure experiences, practicality remains a strong driver of footfall.

Shoppers still expect their high streets to serve functional purposes, with over half (53%) saying running errands is usually the main reason they visit their local high street and two-thirds (67%) saying they visit to pick up something specific.

Accessibility is equally important, with good parking and public transport connections seen as essential by many. The research found that 62% of shoppers consider parking a critical factor for a great high street, while 38% believe proximity to a railway station is important.

Driving future relevance

The role and relevance high streets play in our daily lives at present is evident; nearly two thirds of consumers told us they visit their local high street weekly and one in 10 said they visit daily.

Most encouragingly, almost three quarters (73%) of consumers expect their local high streets to be just as important to them a decade from now.

American Express remains passionately committed to supporting merchants of all sizes on British high streets. Backing these businesses can help safeguard and deliver thriving high streets, creating spaces where commerce and community go hand in hand.

For high streets to remain essential to the communities they serve, they must continue to adapt and evolve; while there is no one solution to guarantee ongoing success, our research demonstrates there are plenty of opportunities for collaboration to help deliver this winning formula.

[1] GlobalData conducted an online survey during May 2024, with a nationally representative sample size of 2,000 UK consumers, asking people how they feel about their high street, and which factors they feel contribute to a great high street generally. From analysis of this data, GlobalData identified the 15 most influential factors, and subsequently, via site visits and further research and analysis pinpointed ten high street locations in Britain that had the most compelling combination of those 15 influential factors