Far from luring consumers away from the high street, social media is sending them to the door in their millions.
New research from American Express estimates that content scrolled on phones is now behind around 1.7 billion visits to UK highways every year, an average of more than 30 million a week.
The Hype to High Street study, carried out with Retail Economics analysts, found that almost two-thirds (63%) of UK adults went into a shop or pub, cafe or restaurant in the past year after being influenced by something they saw on social media. For Gen Z consumers, ages 18 to 28, the figure rises to 88%.
It’s a wonderful twist on the typical story of a doomed brick-and-mortar store. For all the talk of falling footfall and closed shops, the station often accused of ruining the high street is increasingly causing people to come at all.
Research suggests that social media has become a powerful engine of both adoption and loyalty, especially among younger consumers. More than four in five consumers (82%) return to a business after a first visit influenced by social media, rising to 96% among Gen Z. They make persuasive advocates, too: nearly eight in ten (79%) say they shared their recent visit in some way, whether by recommending the business, posting about it or leaving a review online. Among Gen Z, that rises to 89%.
Short form video seems to be very good at converting online buzz into offline lines. The proliferation of brands such as Dubai chocolate and matcha drinks, as well as trending destinations and events, are pushing consumers to find out for themselves.
That points to the emergence of what research calls the ‘viral pilgrimage’ economy, where consumers travel real distances, to other cities and other parts of the country, to get their hands on products, places and styles first discovered on screen. More than one-third (35%) of Gen Z shoppers say they have traveled to another city or state to buy something they first saw trending online. Once there, almost nine in ten (87%) say they would happily queue for the product they are looking for or more information.
It’s behavior that would have baffled marketers a decade ago, when the rise of live commerce and video-on-demand was still a novelty borrowed from China’s platforms. Today, the journey from a 30-second clip to a virtual till is becoming a trend.
The findings draw on a survey of 2,000 UK adults, combined with economic modeling used to measure the total amount and volume of spending influenced by social media on the high street.
Almost nine in ten (87%) respondents said they spent money during a socially-influenced visit, rising to 94% among Gen Z shoppers. Broader, Retail Economics modeling suggests that social media now shapes one in 20 high street purchases across the UK, a measure of how fast online interactions are replacing real-world spending.
At a time when many high streets are still under pressure, with the British Retail Consortium reporting six consecutive months of falling footfall at the end of last year, research suggests the benefits of social tourism have spilled far beyond the business it led.
Nearly one-third (32%) of shoppers visited additional nearby stores, restaurants or venues on the same social-influenced trip, while more than one in five Gen Z shoppers (22%) admitted to spending more than they planned upon arrival. For neighboring independents, a dangerous time a competitor can raise the whole street.
Dan Edelman, UK General Manager, Merchant Services at American Express, said: “Social media has become the new window for shopping on Britain’s high street.
“What’s amazing is that the impact doesn’t stop at the place that first caught the consumer’s attention, social media creates a domino effect that benefits neighboring businesses and helps all high streets to thrive. For retailers, especially those looking to attract younger shoppers, the ability to turn online hype into memorable in-person experiences has never been more important. For businesses in the UK and American Express we committed to succeeding on the high street, American Express is winning them over. helping retailers to take full advantage of this changing consumer behavior.”
Few businesses exemplify this trend better than Randalls, a family-run sweet shop in the East Midlands. After posting a 60-second video of staff packing a customer’s £270 order, he watched shoppers arrive from all over the country. This clip has grown to more than 12 million views, it has raised awareness and, most importantly, the wealth of the surrounding streets.
“We always knew we had something special, but it was always a local secret. One video changed that day,” said Jarrod Burke, founder of Randalls UK. “People started traveling from all over the country to visit the store, including one customer who made a special trip while visiting the UK from Australia. Since the video went viral, our daily take-out has tripled, and we used to have a queue outside the store. It’s amazing to see the impact spread beyond our business, people make your day in Market Harborough, nearby businesses visit independent shops.”
For freelancers wondering how to manage their time, the course is less about chasing virality than being prepared to convert it, with the basics of how to increase your store’s sales as well as engaging content.
Richard Lim, CEO of Retail Economics, said the channel’s influence now extends beyond e-commerce. “Social media is not only driving online sales, it is now also influencing personal consumption on the UK high street,” he said. “The growth of the channel underlines how fast social shopping has grown, and the extent of its positive contribution to the long-term health of UK high streets. Social media is becoming a very important driver of inflation in its own right, helping to transform shops, restaurants and venues into places where consumers actively seek, visit and share.”
Time is of the essence. With online sales accounting for more than a fifth of total UK retail spend and the high street long-term target for the worst, the idea that feed can fill the high street rather than empty it is a welcome change, and one that gives small, nimbler retailers a rare advantage over their bigger rivals.
American Express, meanwhile, has been expanding its high street presence. As of 2021, the number of UK locations accepting its cards has tripled, with more small businesses entering than ever before, and Amex cards will now be accepted at more than 170 million merchant locations worldwide by the end of 2025.
