Defying the gloom: High Street sales on the rise.

With the cost-of-living crisis and gloomy sentiment surveys dominating headlines, you’d be forgiven for thinking that consumers are tightening their belts. But the latest data tells a more nuanced story.

Yes, people are cautious, but they’re also spending – and they’re being selective, choosing purchases that bring joy, convenience, or new experiences.

Recent data from the Office for National Statistics (ONS) showed a 1.7% rise in retail sales volumes in January 2025 compared to December 2024, driven largely by High Street food sales.

This suggests that Brits are feeling more optimistic than predicted.

Last month MRI Software and Retail Economics reported 88% of the UK population visited a retail destination in late 2024.

This month British Retail Consortium Sensormatic are even more upbeat indicating that total UK footfall was up by 6.6% on January last year - led by Wales (8.5%), then England (7.4%), Northern Ireland (3.5%) and Scotland (1%).

It's in keeping with Clear Channel UK's recent study that found over a third plan to increase spending on food this year, even as they focus on saving.

They’re not splurging indiscriminately – they’re prioritising experiences that add value and are open to trying new brands that catch their interest.

Gen Z and younger Millennials are leading this trend, experimenting with brands in food (47%), clothing (35%), household items (31%), toiletries/cosmetics (28%) and drinks (24%).

They’re particularly influenced by recommendations and relatable advertising, showing the power of authentic, localised messaging.

Adding to this shift is a resurgence of cash. Nationwide Building Society revealed a nearly 30% surge in cash withdrawals since 2021, defying the narrative of digital payment dominance.

Economic uncertainty and the cost-of-living crisis are significant drivers of this trend. But this isn’t about avoiding technology; it’s about control. Cash gives consumers a tangible way to budget, helping them spend more intentionally on the things they truly value.

For marketers of bricks and mortar retail brands, this presents a unique opportunity. Consumers are not retreating; they’re recalibrating. They’re looking for meaningful experiences, relevant products, and authentic brands.

To reach them, brands need to be hyper-local, relatable, and ready to engage shoppers who are selective but willing to spend.

We’ll be exploring how to leverage these insights at our next Talking Local Webinar #6 – How to Maximise Your Digital Reach, hosted by We Are Acuity and Be Addressable.

Join us on 26th March at 11am to learn how to connect with these experience-driven consumers and turn insights into impactful local campaigns.

Sign up here and make the most of these emerging opportunities.

We Are Acuity have over 25 years experience in driving local retail for independent and multi-location brands , you can learn more about the services we offer by clicking here.

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