UK high streets show signs of revival amid shifting consumer trends

Some cities are thriving due to income-driven demand, tourism, and cultural appeal, while others continue to struggle with high vacancy rates. Deloitte’s consumer confidence tracker reveals a notable rebound in discretionary spending during Q2 2025, with growth strongest in clothing and footwear at 6.6 per cent.

City centres, occupying just 0.1 per cent of UK land but accounting for 9.1 per cent of all face-to-face spending, are showing contrasting fortunes. London (7.4 per cent vacancy), Cambridge (8.5 per cent), Oxford (9 per cent), Brighton (9.2 per cent), York (9.2 per cent), and Edinburgh (9.3 per cent) are thriving, benefitting from tourism, professional economies, and diverse leisure offerings.

By contrast, Newport (19 per cent vacancy), Bradford (18 per cent), and Blackpool (17.6 per cent) face stark challenges with nearly one in five shops empty. Disposable income remains a critical factor, with every 1 per cent rise in local income reducing vacancy rates by 0.8 per cent.

Cities like Reading and Milton Keynes, where incomes are significantly higher, show stronger resilience and retail diversity, while towns dependent on retail-only models see footfall diverted to out-of-town centres.

Gen Z-led cities such as Manchester, Bristol, and Brighton drive demand for wellness studios, cafes, and creative retail, while Cambridge and Edinburgh continue to benefit from their cultural pull. In contrast, retail-reliant centres such as Wigan and Huddersfield lag behind.

The high street is changing and for the better. For business owners ready to launch, the opportunity is real, but success depends on three key ingredients: location, timing, and understanding consumer behaviour.

For entrepreneurs, the report highlighted clear opportunities. Success in 2025 depends on choosing the right location, understanding consumer behaviour, and aligning with growth sectors such as food, wellness, homeware, and hybrid cultural spaces.

ALCHEMPro News Desk (SG)