The dominance of retail on high streets is something of the past. Whilst shopping will still be a key feature, there is greater demand and opportunity for restaurants and leisure activities, as well as for more public services, such as health centres and libraries, in town centres, points out a recent report by House of Lords.
The Built Environment Committee's report, "High Streets: Life beyond retail?", published today (28), sets out how high streets can be regenerated and become more resilient, emphasising that retail will remain vital but must be part of a broader mix including leisure, services and community spaces.
The committee found that local authorities often lack adequate resources and skills to support high streets, recommending investment in training town centre managers and highlighting the need for greater coordination between Government departments.
The report states that what communities want and what can be sustained on the high street is constantly evolving, so a fixed vision and monolithic approach to their future should be avoided. Local authorities, communities and businesses need to work together to shape high streets that are reflective of local conditions, adaptable, and resilient.
High streets will only thrive if people can get to them easily and safely. Access by car and sufficient parking are necessary for commercial sustainability, though their adverse consequences can be mitigated by better public transport connectivity, particularly through improved bus networks, states the report.
As retail occupancy declines and leaves behind vacant units, cafés and restaurants have taken their place. There has also been a rise in the number of charity shops, which benefit from substantial business rates relief and often have lower staff costs, making them more able to afford high street rents. Public authorities are also tentatively moving public-facing services (such as surgeries and libraries) on to high streets. This can both improve access to those civic functions and increase footfall to sustain local businesses, states the report.
Leading trade association British Independent Retailers Association (Bira) has welcomed a major new report from the House of Lords that calls for empowered local leadership and simplified funding to help revive Britain's high streets.
"People, particularly young people, value having space to socialise and spend time without spending money on the high street. They also value green spaces on or near the high street. More green space and an improved public realm should be a key consideration in proposed regeneration programmes.
"Local authorities and the Government create the structures for high street renewal. The planning system, taxation and funding can all impact the success or failure of projects to revive local places. But, the previous Government's plans to revive high streets were not well co-ordinated.
"The new Government's local growth funding reforms must ensure that high streets are enabled to flourish in the long term, and that those responsible for their future have enough expertise to deliver improvements. The Government should recognise that local authority bidding for central funding has become expensive and wasteful and should consider replacing that approach with a transparent system of funding distribution that commands greater confidence," states the report.
Commenting on the report, Andrew Goodacre, CEO of Bira, which represents 6,000 independent retailers across the UK, said, "This report has identified some of the key elements to a successful high street, whilst recognising that each place needs to find its identity and solution to create a vibrant high street.
"For some time Bira has been saying that retail is no longer the dominant feature of high streets, with consumers looking for more services and leisure opportunities. We also agree with the conclusion that high streets need diversity and adaptability, - characteristics often delivered by independent retailers and independent business in general.
"It is also good to see recognition of the need for good accessibility by investing in infrastructure where possible and highlighting the importance of good car parking.
"Finally, we absolutely support the idea of local business leaders and local communities being involved with future plans to regenerate a place. Funding can also then be devolved to a local level, supporting coherent plans. Independent retailer care about their high street and the their communities, and all too often their voice can be ignored," he added.
The report urges the Government to provide local authorities with more targeted support and calls for a radical simplification of the current funding landscape, which it describes as "patchy and uncoordinated."
It also emphasises the importance of providing resource funding alongside capital investment to ensure sustainable regeneration.
New research from Budweiser Brewing Group UK&I (BBG) has revealed a significant shift in holiday drinking habits, with nearly half of Gen Z opting for a ‘Dry Christmas’.
The survey of 2,000 adults who celebrate Christmas and drink alcohol revealed that 34 per cent of Generation Z feel more pressure to drink alcohol during this period compared to previous years. However, the younger generation appears to be resisting the pressure, with a significant 78 per cent of those born after 1996 planning to start Dry January early, as soon as they finish work for the festive season.
This trend among younger drinkers is largely driven by a desire for balanced lifestyles, financial mindfulness, and the empowerment of making personal choices. In comparison, only 17 per cent of Baby Boomers have ever considered not having a drink over Christmas in the past, with just six per cent planning to do so this year.
Despite the generational differences, the study found that 65 per cent of all drinkers cutting back this Christmas believe they can enjoy the festivities just as much without alcohol. Additionally, a quarter of respondents expressed a preference for moderating their drinking with no-and-low alcohol options at work Christmas parties, a figure that rises to 35 per cent among the youngest workers.
“Moderation is no longer limited to awareness months and days; it is now part of our everyday lives,” Brian Perkins, president of Budweiser Brewing Group UK&I, commented.
“Efforts to moderate in January have been brought forward into the festive period and throughout the rest of the year, as we see more people choosing no-and-low alcohol alternatives as their drink of choice. While pressure to drink alcohol may still exist, it is promising to see people resisting this, and celebrating moderation. What’s even more positive is that moderation isn’t impacting people’s enjoyment; in fact, these results reaffirm that we can and do still enjoy ourselves just as much."
The study also highlighted that four in 10 respondents believe the ‘Dry Christmas’ trend will gain popularity in the coming years. Although this is driven by 60 per cent of Gen Z compared to only 43 per cent of Gen X.
Nearly a third (30%) have noticed more people in their social circles opting to moderate or remove alcohol from their Christmas plans. Furthermore, 56 per cent believe that festive parties now offer more low-and-no-alcohol drinks than five years ago, and 55 per cent feel that the quality of these options has improved.
In fact, the research also found that 64 per cent of adults are keen to moderate their alcohol intake longer term, not just at Christmas.
Perkins added: “Christmas is a time for celebration, and enjoying a drink can be a part of that festive spirit. However, a strong proportion of people are now choosing to embrace the holidays and special occasions all year round with a focus on balance and moderation. To help people moderate, it is important they have options available to do so – that’s why we pride ourselves on having a strong no alcohol portfolio which is growing from strength to strength, including favourites such as Budweiser Zero, Corona Cero and Stella Artois Alcohol Free Lager.”
A good majority of young shoppers prefer shopping at independent retailers, with many even willing to pay extra, states a recent report.
According to a survey of 2,000 adults, commissioned by global online wholesale marketplace and Bira partner Faire, a majority of people aged 18-27 prefer the "personal touch" of an independent store, with 40 per cent of the Gen Z age group also most inclined to avoid chain stores for indie retailers.
74 per cent of Gen Z shoppers prefer shopping at independent retailers, with 62 per cent willing to pay more at indie shops. Among the items most likely to be purchased from independent shops by Gen Z, according to the survey, were clothing (29 per cent), gifts (23 per cent), and home décor or homewares (17 per cent).
The survey also found that a large majority (82 per cent) of adults think their high street needs reviving, with 40 per cent believing more independent shops are key to bringing it back to life.
The survey, carried out through OnePoll, reports that over half of all adults surveyed (56 per cent) cite the cost of living as the main factor driving them to bigger chain stores, while over a quarter (27 per cent) state that they shop at independent retailers more frequently than they did two years ago.
Charlotte Broadbent, UK general manager at Faire, said, “The independent retailers we work with at Faire tell us that it’s often their youngest shoppers who most value the uniqueness and personal touch that independent stores offer over larger retailers.
"The fact they’re also prepared to pay extra for products sold by independent stores shows just how strongly they feel and how optimistic we should be for the growth of the independent retail sector in years to come.”
Charlotte added, “The number of people who want to see local high streets thriving again is huge, and we believe that supporting independent businesses is key to making this happen because they offer so many unique products and experiences that bigger retailers can’t.”
Food sales edged up in the three months to November as more shoppers plan to increase spending this Christmas, shows industry data released today (3).
According to the British Retail Consortium (BRC), the industry lobby group, and KPMG, the consultancy, retail sales slid by 3.3 per cent last month, down from growth of 0.6 per cent in October.
Food sales increased 2.4 per cent year on year over the three months to November, against a growth of 7.6 per cent in November 2023. This is below the 12-month average growth of 3.7 per cent. For the month of November, Food was in growth year-on-year.
Commenting on the figures, Helen Dickinson, Chief Executive at the British Retail Consortium, said, “While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year.
"Even so, low consumer confidence and rising energy bills have clearly dented non-food spending. Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds.
“Retailers will be hoping that seasonal spending is delayed not diminished and that customers get spending in the remaining weeks running up to Christmas. If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year.
"The Budget, as well as the introduction of new packaging levies, will cost retailers over £7 billion extra next year. How effectively the government works the industry to mitigate these costs will determine the extent of price rises and job losses in the future.”
Commenting on food and drink sector, Sarah Bradbury, CEO, IGD, said, “Post-October Budget, shoppers have likely noticed the media reaction from businesses, but this hasn’t significantly shifted their behaviour.
"November’s grocery market performance shows year-on-year growth in both value and volume. IGD’s latest research highlights signs of festive cheer, with 5 per cent more shoppers than last year (41 per cent vs 36 per cent in 2023) planning to spend what they want this Christmas.
"However, despite this uplift, it's unlikely to be a bumper Christmas for all, as many remain focused on budgeting. The festive optimism is there, but the underlying caution means spending will still be influenced by economic pressures, especially on out-of-home activities.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said, “Along with the cold snap at the end of the month, retail sales also went into minus numbers for November.
“An upturn in health product buying also signalled that the winter months had arrived and, along with food and drink, was one of very few categories to see in-store or online sales growth.
“While the majority of November’s data tells a disappointing tale for the retail sector, this reporting didn’t include Black Friday week, so the hope for retailers is that consumers were being savvy shoppers and that the promotional push in the last days of the month saw held-back consumer spend materialise and mitigate what is otherwise a disappointing month. If not, then we may see some retailers launching Christmas sales early.”
Footfall took a "disappointing tumble" in November, shows recent industry data, as retailers remain hopeful that the Black Friday and Christmas sales will help to turn things around for good.
According to BRC-Sensormatic data, total UK footfall decreased by 4.5 per cent in November (YoY), down from -1.1per cent in October. High Street footfall decreased by 3.7 per cent in November (YoY), down from -3.6 per cent in October.
Retail Park footfall decreased by 1.1 per cent in November (YoY), down from +4.8 per cent in October. Shopping Centre footfall decreased by 6.1 per cent in November (YoY), down from -1.6 per cent in October.
Footfall decreased year-on-year for all four nations, with Northern Ireland falling by 2.8 per cent, England by 4.2 per cent, Scotland by 6.8 per cent, while Wales experienced the biggest decline at 7.1 per cent.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Footfall took a disappointing tumble in November, as a later-than-usual Black Friday and low consumer confidence meant customers were hesitant to hit the shops. Some northern cities also suffered particularly badly due to Storm Bert, which caused travel disruption towards the end of the month.
"Retailers remain hopeful that the Black Friday and Christmas sales will help to turn around the declining footfall seen through most of 2024, crucial as we enter the “golden quarter”.
"Retail not only contributes to the economy of local areas but is essential to everyday life in communities across the country. New costs bearing down on retailers in 2025, including from rises in Employer National Insurance, National Living Wage, and packaging taxes, means investment in jobs, stores, and high streets will likely be curtailed.
"If the Government wishes to bolster footfall and the growth and investment that would come with it, it must help retailers mitigate the impact of the £7 billion additional costs they face from next year.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, "Retail store visits dipped in November as consumer confidence remains volatile, perhaps not helped by post-Budget spending jitters and shoppers withholding festive purchases, opting instead to shop around for the best prices or hold out for further discounting.
"This lacklustre footfall performance will have come as a blow for many retailers, who would have been counting on getting early Christmas trading results under their belts before the start of advent.
"However, it’s worth noting that these figures do not include Black Friday and the Saturday of the Black Friday weekend - tipped as one of the top busiest days for store shopping during peak trading - which will hopefully jump start seasonal shopping. Now, all eyes turn to December, where retailers hope to make up for lost ground and turn around their festive fortunes.
"This will rely not only on effective merchandising and shored up inventory availability, but on building the compelling and immersive experiences that bring the seasonal magic to life in-store.”
Consumer confidence is subdued as the key festive shopping season approaches, with households concerned about the economy following last month’s Budget, suggests new data from the British Retail Consortium (BRC) and Opinium.
BRC’s Consumer Sentiment Monitor, which surveyed people between 12 and 15 November, showed a slight improvement in personal financial expectations, from -4 to -3. However, expectations for the wider economy worsened to -19 compared to -17 the previous month.
Meanwhile, personal spending on retail saw a small increase, rising to +3 from +2 in October. Overall personal spending remained stable at +17, and personal saving expectations remained unchanged at -9.
“There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead-up to Christmas,” Helen Dickinson, Chief Executive of the BRC.
“While there was a very slight improvement in people’s expectations of their personal financial situation, this was offset by declining expectations of the wider economy. Personal retail spending remained positive, edging up slightly, though this was to be expected as consumers prepare for the festive season.
"Within this, non-food spending expectations remained low, though expectations of spending on eating out improved the most out of all categories, as people prepare for Christmas catchups with friends and relatives.”
She added: “The last month clearly did little to shift the dial for households either positively or negatively, however, the same cannot be said for the retail industry. With over £7bn in additional costs in 2025 resulting from the Budget, retailers will have little choice but to raise prices or reduce investment in jobs and shops.
"To mitigate this, the government must ensure that changes to the business rates system, planned for 2026, bring about a meaningful reduction in bills for all retailers.”