From shopping to social: the new role of the high street

American Express’ in-depth Retail 2050 research has found nearly two-thirds (64 per cent) of shoppers believe retailers should prioritise differentiated experiences that foster a sense of belonging, while a similar proportion (62 per cent) expect in-store visits to offer something digital cannot.

 

This signals a decisive shift from transactional convenience to experience-led destinations – the high street is no longer just a place to buy things, but somewhere people choose to visit as a way of connecting with others.

 

The high street as a social destination

 

Consumers, particularly those in younger generations, are redefining shopping as a social activity rather than a functional task. Nearly six in ten (59 per cent) Gen Z (aged 13 to 28) treat a shopping trip as a full “day out”, compared with just 30 per cent of Baby Boomers (aged 61 to 79), highlighting how retail is becoming more embedded in leisure time for younger generations.

 

Regardless of generation, four-fifths (79 per cent) of all consumers say they prefer destinations where shopping sits alongside food, culture and entertainment – signalling that retail spaces are now expected to play a part in delivering a broader, more engaging experience.

 

Over half (55 per cent) of consumers expect stores in the future to become multi-sensory environments, according to the research, where elements such as light, sound and scent enhance the overall experience. For retailers, the implication is immediate: success will depend on creating spaces people actively choose to spend time in; environments that feel relevant, welcoming and worth the visit.

 

As a long-standing champion of the high street, American Express partners with businesses to help build these lasting customer relationships – supporting them to welcome Cardmembers seamlessly, whether through broad acceptance, integrated payments or tailored offers that help turn visits into lasting loyalty.

 

Technology as the enabler

 

If experience defines the future of retail, technology will enable it. Two-fifths (41 per cent) of shoppers believe artificial intelligence (AI) will make shopping faster and more efficient, while 30 per cent expect more personalised choices as these tools evolve.

 

This shift is already underway. Agentic commerce – where AI can search, select and complete purchases on a customer’s behalf – is beginning to reshape how people discover and buy goods. Amex is part of this ecosystem, along with AI platform partners and industry bodies working to support secure, seamless AI-assisted transactions.

 

Underpinning this is the need for reliable, widespread acceptance – shoppers will want to complete purchases across multiple channels, whether in-store, online or via AI-driven interfaces – as seamlessly as possible. With 60 per cent of shoppers highlighting payment friction as a pain point, according to the research, ensuring customers can pay with their preferred method is becoming a critical part of the overall experience.  

 

As commerce itself becomes more automated, physical retail is freed to focus on what it does best: human interaction, discovery and memorable experiences. Personalisation is moving from a differentiator to an expectation and, importantly, this evolution is not pulling consumers away from physical retail – it is drawing them back in. Nearly two-thirds (65 per cent) say they expect to shop in-store more frequently in the future, suggesting that when deployed well, technology will help strengthen the role high streets play in future.

 

What this means for retail leaders

 

The emergence of AI-driven commerce presents one of retail’s biggest opportunities. As technology automates more of the transactional work by searching, comparing and, ultimately, purchasing on behalf of customers, brands will have greater opportunity to invest in experience, connection and discovery.

 

In the future, the most successful retailers will not choose between digital efficiency and physical experience. They will use one to elevate the other, meeting customers seamlessly across channels while creating in-store moments that cannot be replicated elsewhere. For businesses, this requires a clear shift in mindset: away from efficiency-first thinking and towards experience-led investment, where technology enhances human connection rather than replaces it.

 

American Express is now accepted at more high street and online businesses than ever before, meaning Cardmembers can use their card wherever they work, live and travel. In a retail landscape increasingly defined by experience and connection, customers paying in their preferred way is a simple but powerful part of making every visit feel seamless and inclusive. For high street businesses, that can make the difference between a missed opportunity and a meaningful interaction – helping turn everyday transactions into lasting customer relationships.

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Explore the full Retail 2050 research