4 Ways Gen Z Will Revolutionise Retail

As global retail continues to navigate a post-Covid, AI-centric reality, brands and businesses are continuously looking for the next big British retail trend to balance eCommerce with in-store experiences and to drive footfall into their retail spaces. The collective UK retail industry is always on the hunt for new ways to innovate the shopping experience and attract shoppers, but often these experiments are based off trends and hunches without real proof or research.

So the timing is perfect that American Express, in partnership with futures consultancy Trajectory, conducted research (aptly named The Retail 2050) to understand what British retail could look like by 2050 and how the shopping experience may evolve over the next 25 years. And it comes as no surprise that Gen Z are the focus of this study, as Gen Z (today aged up to 28) will be the main cohort with the greatest spending power and economic influence.

And because it's Gen Z we're talking about, it is also unsurprising that topics like immersive shopping and AI usage feature heavily in the report. Read on to learn about the 4 biggest takeaways from The Retail 2050 on how Gen Z will shape and change the UK's retail sector over the next 25 years.

1. Shopping should be a "full day out"

65% of Gen Z shoppers say that every high street shopping trip should provide experiences they cannot get online, such as dining out, hanging out with friends and so on, and 59% treat a shopping trip as a full "day out", combining shopping, dining and culture into one outing. In fact, 4 out of 5 shoppers want future retail destinations to be more than just a retail space; they want stores to incorporate leisure spaces such as bars and cafes, to allow for breaks between purchases and places to catch up with friends.

How retailers should adapt: we are seeing this shift occur already. Whether it's stores like Tommy Hilfiger incorporating People's Place, a café where you can sip a latte while waiting for the shop assistant to bring out your size, or Battersea Power Station, where the centre is a mixture of retail shops, restaurant and bars and even social spots such as Bounce (table tennis), retailers are looking to incorporate leisure into the shopping experience. If you cannot commit to a full-time coffee space, why not organise a pop-up lemonade stall in the summer and a hot chocolate booth for the winter?

2. Tech-led experiences and personalisation

Given that Gen Z are the generation brought up with digital, tech and social media, it is no surprise that they value tech-led experiences. 76% of Gen Z shoppers believe retailers should use AI to create more immersive in-store experiences, and 60% say they would be more likely to visit a store that integrated tech with the shopping process, such as digital try-ons or AI-generated styling advice.

How retailers should adapt: Embrace the tech. It may seem scary, but there are so many tech and AI vendors out there who tailor to different aspects of retail, your digital in-store vision can very likely become a reality. Whether it's VR headsets for furniture stores to simulate a fully furnished living space, or AI stylists taking the customer's style and size into account, there are countless ways to bring digital to the world of in-person shopping.

3. Personalisation and friction-free convenience

Where previous generations may be reticent about sharing their personal data and preferences with AI, Gen Z see the positives of hyper-personalisation. 83% would welcome personalised rewards and recommendations based on purchase history. In addition, Gen Z shoppers highly value frictionless retail, with mobile and self-checkout, speedy kerbside pick-ups and in-store digital guides ranked as important. The ability to self-serve makes the shopping experience smooth and efficient, making the "full day out" more enjoyable overall.

How retailers should adapt: if real-time, hyper-personalised AI advisors are out of scope (or budget), start investing in data analytics, to help spot patterns in consumer behaviours and retail trends. As for frictionless retail, invest in technological advancements such as RFID labelling and convenient payment methods to create a seamless shopping experience.

4. Create the Retail Trifecta

According to Retail 2050, the three things Gen Z shoppers expect from their shopping experience are Retail (duh!), Leisure and Culture. In other words, they want the high street to be more than just shops: 82% of Gen Z shoppers want their high streets to remain fresh through a steady rotation of pop-ups and new venues. In fact, 64% want cultural spaces such as galleries and theatres to be integrated into retail environments.

How retailers should adapt: it is clear the future UK consumers want the shopping experience to encompass more than retail; they want a combination of retail, leisure and cultural experiences. So start working on an events calendar: find key dates and events that align with your brand's values and ethos, and organise events such as evening Q&A sessions with relevant influencers or coffee mornings before the store opens. This is a simple way to transform your store into more than just a store; these experiences make your store a social hub.

What is the future of the high street in the UK?

If you haven't sensed it by now, the future of UK retail and the British high street is about immersive consumer experiences. But this spans beyond just AI in retail; from creating cultural and social hubs within retail spaces to hyper-personalisation, the UK retail industry must embrace the evolution of the high street experience to encompass the Retail Trifecta: retail, leisure and culture.

How is AI transforming UK retail in 2025?

The Retail 2050 may predict how UK retail will be shaped over the next 25 years, but it is clear that AI is already shaping UK retail trends and customer experiences today. Retailers are already using AI to:

• assist with forecasting and predicting consumer demand

• analyse consumer behaviour and personalise marketing messages

• draw inspiration for future collection designs

• enable virtual try-ons

If you are feeling overwhelmed by the number of AI solutions in the world of retail, get in touch with us today and let us untangle the confusion and work towards a profitable, viable AI solution for your retail business.

Retail tech will continue to evolve as businesses dream up and create new tech capabilities quicker than ever before, and it is clear that Gen Z will expect more and more from retailers compared to previous generations. So why not get ahead of the curve and start thinking about creative, imaginative ways to incorporate digital and tech into your retail experience, both online and offline?

Need help with Retail Tech?

Inspired to get cracking on speaking to Gen Z but not sure where to start? Get in touch and let us know what help you need, and let's see how we can help find the perfect retail tech solution that works well for your business.