Britain’s local retailers are powered by loyal regulars who generate them up to five times more annual revenue as they typically return to a business 11 times throughout the year, according to research from Square, the global technology company.
For high street retailers specifically, the Square Local Economy Report reveals that UK consumers most often visit their local retailers and shops, over and above cafés, restaurants and beauty salons, with 70% shopping locally at least weekly.
This is the highest rate across the four countries Square surveyed, compared to the US, Australia and Canada.
Despite the squeeze on household incomes, Square’s report highlights UK shoppers’ unwavering support for their local high streets – with people visiting more local businesses in 2025 than they did in 2024, up 11% YOY.
This is translating into real spending behaviour too. In the last 12 months, nearly a quarter of UK consumers (22%) say they spent more at local businesses and a further 55% say they spent the same amount. Looking solely at local retail, this is even stronger, with a third of consumers (33%) increasing their spending in-store and online.
The picture looks positive for the future too, as consumers are confident about their ability to keep spending locally over the next year; a fifth expect to spend more and a further 56% plan to maintain their spend. Plus, seven in 10 are likely to keep shopping with a local business if it raised prices alongside increased value – whether that is better service, better products, or more compelling offers.
John O’Beirne, CEO at Square International, said, “While some households may be tightening their belts, local spending continues to hold strong. But local growth doesn’t come from a single ‘big bet’ moment – it’s nurtured over time, with regulars acting as stabilisers for businesses. Owners need to design their business around repeat visits and low-friction loyalty. That means combining consistent quality, human connection and convenient digital tools to make repeat visits easy and rewarding, so everyday purchases can become lasting habits.”
Four in five British shoppers say their relationship with their favourite local spot is much more than transactional, with 40% describing the relationship as familiar – that feeling of being recognised when you walk through the door. Another 29% say they feel connected with a personal bond with the staff and one in 10 describe their favourite local business as part of their social life and community.
This important emotional connection means that consumers are willing to prioritise quality experiences when choosing where to spend locally. Quality remains the most important factor influencing consumer decisions (according to 73% of respondents) followed by price (63%), convenience (57%) and friendly, reliable service (54%), which is where local retailers can shine.
Keeping regular customers who return to the same business at least four times in a year form the backbone of local commerce, and business owners recognise this, actively investing in marketing to build relationships. Use of Square’s marketing products has risen every year since 2021 and, in 2025 alone, loyalty subscriptions grew by 46%. In fact, 93% of Square businesses using a marketing product successfully maintain regulars, compared to 39% of businesses that don't use a marketing product.
And this isn’t marketing for marketing’s sake: using a marketing product is associated with stronger day-to-day performance. Square data shows the right products are associated with 7x higher average daily transactions and 4x higher average daily spend.
Joanna Mangion, Founder and Director, nue ground Wellness Lifestyle said, “Our growth has come through loyalty, increased frequency, and a widening customer base. Since opening a studio next to our café, customers are spending more time with us: coming for a class, staying for brunch, getting a massage, enjoying a wellness drink, or working from the café. Spending has become more intentional as quality matters more, and overall engagement has increased.”
Regular shoppers also have a bigger impact on the high street in general. More than a third of UK consumers (35%) say they always or often visit other types of local businesses when they’re already out shopping locally.
To learn more about how customers are supporting their local communities, you can find the Square Local Economy Report here.