[Lightspeed] What was discussed at the Retail Trends Dinner

On the 5th August at the sublime Akara restaurant in Borough Yards, London, the UK Retail team at Lightspeed spent an evening talking with key retail experts about their latest retail trends report.

This research has revealed that the high street could see a boost later this summer with nearly eight in 10 Brits (79%) surveyed shop in person and four in 10 are looking to increase how much they hit the high street shops this year.

The research also revealed:

• Seven in 10 identify as being a ‘Deals Shopper’ meaning getting ‘bang for their buck’ is top of the shopping agenda
• Shopping smarter in 2024: despite more people planning to shop on the high street, Brits employ tactics to boost value for money:
  • 51% take advantage of offers such as 2 for 1
  • 39% change who they shop with to get better prices
  • 24% only shop during sales periods
  • 24% buy reloved or reconditioned items
• Those under 45 years old are most likely to shop reloved and reconditioned items, primarily driven by the cost effectiveness
• AI powered personalised discounts are what shoppers are the most looking forward to from AI

Rise of the ‘Deals Shopper’ Breathing Life into British High Streets

The latest research by Lightspeed Commerce Inc., the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, reveals that the high street could see a boost later this summer with nearly eight in 10 Brits (79%) surveyed shop in person and four in 10 are looking to increase how much they hit the high street shops this year.

Lightspeed’s study captures the nation’s feelings on the costs of products rising in the past few years, with 77% of respondents saying they believe that rising prices for retailers, such as energy bills and rent, are the primary reasons behind increased prices. More than half (51%) of those surveyed do not believe these price hikes are fair.

To counteract these rising costs, shoppers are adopting cost-saving measures such as taking “2 for 1” deals (51%), changing their preferred retailers to find cheaper prices (39%), shopping less frequently than last year (38%), only shopping during sales periods (24%), and asking others what they want for Christmas and birthdays to avoid wasting money (24%).

Apparently the most optimistic age group of the nation, almost a quarter (24%) of Gen Zers are spending more money now than they did 12 months ago, with 28% saying they make more impulsive purchases, thanks to social media, and nearly a third (32%) of Gen Z shoppers now shopping exclusively during sale periods to get the best deals. #TikTokmademebuyit reigns true as it is the platform with the biggest influence in social purchases amongst this age group (59%), followed by Instagram (53%) and Facebook (24%), however despite this age group being the least likely to shop in store, 33% will be influenced by what they see on social media and subsequently head to the high street to find the item they’ve seen on socials.

Adopting pre-loved items

Despite 62% of those surveyed saying they haven’t shopped in store for pre-loved or reconditioned items, nearly half of respondents (46%) stated that they plan to already check or consider the ethical and sustainable origins of a product before buying something new. With under 45s being the most inclined to buy reconditioned or pre-loved items, the primary reason for doing so is less ethically driven and more to do with the impact on their pocket. Cost-effectiveness (61%) is seen as the top motivator followed by environmental concerns (35%), old items being seen as better quality than new items (29%), recurring fashion trends that have come round again (20%) and opposing fast fashion (19%).

How people feel about AI when they shop

When it comes to the use of AI during the shopping experience, the nation is currently split on how comfortable they feel about AI, with 32% stating they are somewhat comfortable to very comfortable with AI being part of the shopping experience and 35% saying they feel somewhat uncomfortable to very uncomfortable with it.

When asked about people’s direct experience with AI whilst shopping, it’s the need for speed that wins shoppers over, with 41% of respondents saying that self check-out in more stores would enhance their experience the most. This is followed by people being more open to AI in stores that delivered personalised discounts to them (39%), personalised suggestions in-store (28%), recipe suggestions based on what’s in their grocery shopping (27%), virtual fitting rooms (26%), make-up shade matching (23%), and changing digital window displays (21%).

The emerging shopper typologies

When respondents were asked what type of shopper they are, a huge 70% identified as a ‘Deals shopper’, meaning they actively look for deals, discounts and offers to gain bang for the buck, followed by 46% of shoppers stating they are ‘Last minute shoppers’ who like a speedy in store experience with attentive customer service, good stock availability and multiple store locations so they can get what they want, when they want.

70% of our respondents say they are a ‘Deals Shopper’: I actively look for deals in store and sign up for offers and discounts that offer value for money. I’m less bothered about the in-store shopping experience, it’s all about getting bang for my buck!

46% of our respondents say they are a ‘Last Minute Shopper’: I purchase on the high street and want a speedy in store experience with attentive customer service, and I expect good stock availability and multiple store locations so I can get what I want, when I want.

35% of our respondents say they are a ‘Personal Shopper’: I like to schedule a shopping trip. I expect good customer service and I’m open to stores using AI to enhance my shopping experience, so it feels like it’s more personal to me. I buy into a brand and want to receive offers and in store experiences that are tailored to me.

32% of our respondents say they are a ‘Fair Share Shopper’: I actively search out second-hand pre-loved shopping experiences, and I value the ethical and sustainability of a brand and the items they stock. I expect sustainable materials to be used in packaging.

17% of our respondents say they are a ‘Social First Shopper’: I buy things ‘on trend’ and get inspiration from social media and then I might buy in store so I can experience it hands on before purchasing.

Liam Crooks, MD of EMEA at Lightspeed says, “It’s encouraging for retail businesses to hear that people are looking to shop in store in the second half of 2024, and even more illuminating to know that they can make strides in converting business by taking steps to look at what ‘makes’ the shopper experience. From simple and easier AI powered tech, to personalised deals and offers to show they really know their customer, and understanding the motivations around ethical purchases, retail in the UK can once again thrive”.

To learn more about Lightspeed, visit www.lightspeedhq.co.uk.

 Methodology

 Lightspeed initiated a consumer survey throughout July 2024 using third party survey vendor Perspectus Global. 1,004 responses were collected across the UK. Respondents were required to be over the age of 18, all responses collected were anonymous, and have been quality reviewed for a reasonable margin of error.

About Lightspeed

 Powering the businesses that are the backbone of the global economy, Lightspeed’s one-stop commerce platform helps merchants innovate to simplify, scale, and provide exceptional omnichannel customer experiences. Our cloud commerce solution transforms and unifies online and physical operations, multichannel sales, expansion to new locations, global payments, financial solutions, and connection to supplier networks.

Founded in Montréal, Canada in 2005, Lightspeed is dual-listed on the New York Stock Exchange and Toronto Stock Exchange (NYSE: LSPD) (TSX: LSPD). With teams across North America, Europe, and Asia Pacific, the Company serves retail, hospitality, and golf businesses in over 100 countries.

 For more information, see www.lightspeedhq.co.uk.

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