LocalVerse

Author: Karam

  • The Future of Local Shopping: How to be Discovered

    The landscape of local shopping in the United Kingdom is undergoing a significant transformation. Traditional high streets face challenges from the rise of online retail, changing consumer behaviours, and economic pressures. Yet, amidst these shifts, opportunities emerge for local businesses to enhance their visibility and thrive. This report delves into the future of local shopping in the UK and strategies for businesses to be discovered in this evolving environment.

    The Current State of UK High Streets

    Recent years have seen a decline in physical retail spaces. Iconic establishments like Jolly’s of Bath, a 200-year-old department store, have closed their doors, marking the end of an era for many traditional retailers. Factors contributing to these closures include the surge in online shopping, increased operational costs, and shifting consumer preferences. In the first half of 2021 alone, approximately 8,700 high street stores closed (according to a study from PwC), a trend exacerbated by the COVID-19 pandemic and the growing demand for online retail.

    The Rise of Independent Retailers

    Despite these challenges, independent retailers are carving out a niche on UK high streets. According to McKinsey, 71% of consumers expect personalized interactions, and 76% get frustrated when they don’t receive them. This trend indicates that independent businesses, known for their authentic and tailored customer experiences, are well-positioned to meet these evolving consumer preferences.

    According to Our High Streets, 100 UK high streets reported a 40% reduction in traditional retail space, creating opportunities for independent businesses to occupy these spaces with innovative, experience-led models.

    Embracing Multi-Channel Strategies

    To remain competitive, local businesses are adopting omnichannel retail strategies, integrating both offline and online presences. This approach allows customers to engage with businesses through multiple channels, enhancing convenience and accessibility. The “Click and Collect” model, pioneered in the UK by retailers like Argos, enables customers to order online and pick up in-store, blending digital convenience with physical presence.

    Leveraging Local SEO and Online Platforms

    Visibility in the digital realm is crucial for local businesses. Optimising for local search engine results ensures that potential customers can easily find businesses online. Utilising tools like Google Business Profile allows businesses to manage their online presence, appearing in local searches and on Google Maps. Accuracy and consistency in online listings are vital, as they directly influence local search rankings.

    Community Engagement and Collaboration

    Building strong ties within the local community fosters loyalty and word-of-mouth referrals. Participating in initiatives like Small Business Saturday encourages consumers to support local enterprises. This campaign, held on the first Saturday of December, has seen growing success, with consumers spending £748 million with small businesses on the day in 2017. In 2024, according to research from American Express, it earned £634 million, the highest since the pandemic, even despite challenges from Storm Darragh.

    Adapting to New Retail Formats

    The concept of “dark stores“, which are retail outlets or distribution centres not open to the public but dedicated to online order fulfilment, has gained traction. Supermarkets and retailers utilise these spaces to meet the increasing demand for online shopping, ensuring efficient and timely deliveries. This model reflects a shift towards blending traditional retail with e-commerce to meet modern consumer expectations.

    In the evolving UK retail landscape, independent retailers are increasingly adopting technology to enhance in-store operations, despite initial reservations about online engagement. According to a report by Retail Technology, these retailers are integrating digital solutions to streamline processes and enrich customer experiences, thereby influencing the high street’s future.

    Similarly, research from Retail Technology Show indicates that artificial intelligence (AI) is viewed by UK retail leaders as a key driver for growth in 2025, with AI applications ranging from personalized marketing to in-store analytics.

    Additionally, findings from Retail Insight Network reveal that 66% of British independent retailers embracing digital operations report thriving businesses, and 48% attribute increased revenues to technological adoption. These developments underscore the necessity for independent retailers to leverage technology, not just for online presence but to enhance traditional retail operations and remain competitive.

    How LocalVerse Can Help

    To adapt to the future of shopping, retailers can leverage technology to enhance customer engagement and streamline operations. LocalVerse can help by providing tools that simplify the process of digital discovery for local businesses, enabling them to reach customers more effectively. This includes offering support with inventory management, customer interaction, and optimizing in-store experiences with digital tools. By embracing these solutions, retailers can ensure that they stay relevant in a rapidly evolving landscape and maintain a competitive edge, even in an increasingly tech-driven retail environment.

    Conclusion

    The future of local shopping in the UK is dynamic and multifaceted. While challenges persist, especially for traditional high street retailers, opportunities abound for those willing to adapt. By embracing digital tools, fostering community connections, and exploring innovative retail models, local businesses can enhance their discoverability and thrive in the evolving marketplace.

  • January 2025 VS 2024 Retail Comparison

    In January 2025, the UK retail sector exhibited varied performance across different categories. Independent clothing stores continued their downward trend, albeit with a less pronounced decline than in January 2024. Independent household goods stores showed signs of recovery, outperforming their January 2024 figures. Conversely, independent food stores experienced a dip compared to the previous year, following a strong 2024. The sports equipment, games, and toys sector saw significant growth, building on an already successful year. Meanwhile, the computers and telecom equipment sector maintained positive performance, though growth rates slightly lagged those of January 2024. Based on data from Office of National Statistics (ONS) and major news sources.

    Sector Performance Comparison

    Independent Clothing Stores

    Independent clothing stores continued their decline in January 2025, from the numbers published from ONS, sales decreased by 18.6% from December though less sharply than in Janurary 2024 where it decreased by 31.5%. Competition from online retailers, changing consumer preferences, and economic pressures on discretionary spending remain key challenges. The high street has been particularly affected, with several long-standing stores closing. Dinghams Cookshop in Salisbury shut after 40 years, citing unsustainable costs, while Dobbies closed its Northampton branch due to inflationary pressures. TimePiece, a family-run watch repair shop in Bolton, also shut after 19 years, reflecting declining foot traffic and the shift to online shopping. These closures highlight the persistent struggles faced by independent retailers.

    Independent Household Goods Stores

    January 2025 marked a positive shift for independent household goods retailers, from the numbers published from ONS, sales decreased by 0.6% with performance improving compared to January 2024 where it decreased by 6.5%. This resurgence can be linked to increased consumer investment in home improvements and furnishings, driven by a desire to enhance living spaces. The Construction Products Association forecasted 3% growth in private housing repair and improvement in 2025, reflecting a wider trend of spending in this area.

    Additionally, Barclays reported a 6.3% rise in spending on ‘Insperiences’—at-home experiences—suggesting that consumers are prioritising home-related purchases. Promotional activities such as seasonal discounts, in-store exclusive deals, and bundle offers likely played a key role in attracting customers back to physical stores. Retailers may have also leveraged loyalty programmes, click-and-collect incentives, and interest-free credit options to encourage spending.

    Independent Food Stores

    After a robust performance in 2024, from the numbers published from ONS, sales for independent food stores experienced a downturn in January 2025 where there was a decrease of 2.8% while in 2024 there was an increase of 5.3%. This decline could be due to increased competition from larger supermarket chains, changes in consumer spending priorities post-holiday season, and potential supply chain disruptions affecting product availability.

    Despite this short-term dip, the long-term outlook for these stores remains positive, supported by sustained consumer interest in locally sourced and specialty food products. NielsenIQ highlights that consumers continue to prioritize fresh, locally sourced, and organic foods, driven by health and environmental considerations. This trend underscores the resilience of independent food retailers catering to the growing demand for sustainable and high-quality food options.

    Sports Equipment, Games, and Toys

    The sports equipment, games, and toys sector experienced substantial growth in January 2025, from the numbers published from ONS, sales increased by 14.4%, building on an already successful 2024 where sales increased by 4.6%. This rise can be attributed to a growing consumer focus on health and fitness, with more people investing in home gym equipment, outdoor sports gear, and wellness-related products. A survey by PA Consulting found that four in five consumers planned new wellness and fitness purchases by 2025, reflecting a broader shift towards active lifestyles.

    Additionally, the continued popularity of gaming and home entertainment contributed to strong sales in this category, as consumers sought high-quality leisure options. Experian reported that the UK’s health and wellness boom has driven increased spending in related markets, further supporting demand. Marketing campaigns promoting the latest sports technology and gaming innovations have also played a role in driving consumer engagement, making this one of the strongest-performing retail sectors in early 2025.

    Computers and Telecom Equipment

    In January 2025, the computers and telecom equipment sector continued to perform well from the numbers published from ONS, sales increased by 7.8%, driven by remote work trends and the need for up-to-date technology. However, growth rates were slightly lower than in January 2024 where there was an increase by 28.5%, likely due to market saturation and extended product lifecycles. As noted by the Corporate Finance Institute, market saturation leads to increased competition, shifting the focus from customer acquisition to retention.

    Rapid technological advancements and shorter product lifecycles, as explained by Wharton, contribute to slower growth despite ongoing demand. According to S&P Global, the networking industry is also expected to experience moderate recovery in 2025 after a decline in 2024.

    Retail Closures & Openings

    The retail sector faced notable challenges, with several independent and long-standing stores closing due to economic pressures and shifting consumer behaviours. In 2024, the UK experienced a significant number of retail store closures. According to data from the Centre for Retail Research, a total of 13,479 shops closed during the year, averaging approximately 37 closures per day. Independent retailers were particularly affected, with 11,341 closures.

     For instance, Hughes Electrical, a family-owned retailer, closed its Felixstowe branch after 40 years, citing the rise of online shopping as a significant factor.

    The closure of Clitheroe Books, driven by rising property rents, highlights a broader issue affecting small businesses in town centres. Owner Paul Hamer expressed concern over the increasing number of non-retail establishments, such as barbers and vape shops, which he believes contribute to the “dumbing down” of the area. He pointed out that such businesses may not attract visitors in the same way a bookshop can, ultimately harming the town’s appeal. Hamer’s decision underscores the challenges small businesses face considering high rental costs and shifting local retail landscapes.

    Similarly, The Original Factory Shop announced the closure of its Great Harwood store, influenced by lease terminations and broader high street struggles. These closures reflect the broader trend of declining physical retail presence, influenced by increased operational costs and the growing preference for online shopping.

    Tee Tea, a bubble tea and dessert store in Brighton, was forced to close after its lease expired. Despite efforts from new owners to save the financially struggling business, the landlords requested the property back in February 2025. The café is now seeking public support via a GoFundMe campaign to help secure a new location and cover operational costs. The business plans to offer special discounts and free drinks to donors once they reopen in a new spot.

    The retail sector is facing significant challenges, with several long-standing stores closing due to rising costs and changing consumer habits. Notable closures include Hughes Electrical in Felixstowe, Clitheroe Books, and The Original Factory Shop, each affected by factors like high rents, competition from online shopping, and shifting local retail dynamics. On the other hand, some businesses, such as Tee Tea in Brighton, are striving to reopen by seeking public support, reflecting the resilience of small retailers navigating economic pressures.

    Consumer Trends & Behavioural Shifts

    In January 2025, UK consumers exhibited a cautious yet adaptive spending approach, balancing online and in-store shopping preferences. According to Barclays Corporate Banking, overall retail spending increased by 1.2% year-on-year, with non-essential spending rising by 2.7%, driven by sectors like entertainment and health & beauty. However, the Confederation of British Industry reported that consumer-facing services firms experienced a significant decline in profitability, reflecting a cautious spending mindset among households.

    Additionally, NielsenIQ noted a five-point drop in the UK Consumer Confidence Index to -22 in January, indicating prevailing economic uncertainties influencing more selective spending, particularly in categories such as clothing and food. Despite these challenges, certain sectors, notably health and beauty, have successfully attracted consumers back to physical stores, offering unique products and in-store experiences that resonate with the health and wellness trend.

    Key Takeaways & Outlook

    The UK retail sector in January 2025 demonstrates resilience amidst economic challenges. Sectors that have adapted to changing consumer preferences. This growth was particularly evident in health and beauty products, where spending rose by 10.7% according to the British Retail Consortium (BRC), influenced by social media trends and endorsements have seen positive outcomes.

    However, traditional retail models, especially independent stores, must innovate and differentiate to remain competitive. Looking ahead, retailers should focus on enhancing digital presence and discoverability, offering unique in-store experiences, and closely monitoring consumer trends to navigate the evolving market landscape.

    At Localverse, we help retailers stay ahead by providing data driven insights into shifting consumer trends, market demands, and competitive positioning. Our innovative products empower businesses to enhance their digital presence, optimise in store experiences, and adapt to changing retail dynamics with confidence. By leveraging our expertise, independent retailers can make informed decisions that drive growth and resilience in an evolving market. Contact Localverse today to discover how we can support your business.

    Conclusion

    In summary, January 2025 presented a mixed landscape for UK retailers. While certain sectors like household goods and sports equipment experienced growth, others, including independent clothing and food stores, faced challenges. The ongoing shift towards online shopping, coupled with economic pressures, underscores the need for retailers to adapt strategies that align with changing consumer behaviours and market dynamics.

  • How Local Markets Contribute to Economic Growth

    Local markets have long been integral to the UK’s economic landscape, serving as hubs of commerce, community interaction, and cultural exchange. Beyond their traditional roles, these markets significantly contribute to economic growth and employment across the nation.

    Economic Contributions of Local Markets

    Local markets are dynamic centres of economic activity, fostering entrepreneurship and supporting small businesses. They generate substantial revenue, with estimates indicating that UK farmers’ markets alone contribute approximately £500 million annually to the economy. According to a study from VISA, for every £10 spent at a local business/market, typically £3.80 remains within the local community, strengthening local businesses and services. Whereas when shopping with high street chains, it is estimated that just around £1.40 stays in the local economy. 

    According to a report published by Power to Change in 2022, there are approximately 11,000 community businesses operating in England, generating a total income of just under £1 billion. These businesses are deeply rooted in their communities, contributing both financially and socially to local economies.

    Moreover, markets enhance the vitality of town centres by increasing footfall, which benefits surrounding retailers and service providers. This increased activity can lead to higher local spending, further stimulating economic growth.

    Employment Opportunities

    The role of local markets in job creation is significant. Traditional retail markets directly employ around 32,000 market traders, and over 22,000 small and micro businesses operate within these spaces. These markets offer accessible entry points for entrepreneurs and create diverse employment opportunities, from stallholders to supply chain roles.

    Additionally, markets often employ more people per square metre than supermarkets, distributing profits locally and adding vibrancy to high streets. This localised employment not only reduces unemployment rates but also fosters a sense of community and belonging among residents.

    Supporting Sustainable Economies

    Local markets contribute to the development of sustainable economies by promoting shorter supply chains and reducing transportation emissions. By sourcing goods locally, these markets minimize the environmental impact associated with long-distance transportation and support local producers. This practice not only benefits the environment but also ensures that a higher percentage of consumer spending recirculates within the local economy.

    By purchasing from local markets, consumers help support small-scale farmers, artisans, and other local businesses that may struggle to compete with larger corporations. This can lead to job creation, economic diversification, and greater food security. Local markets also encourage the production of niche, organic, or sustainable goods that might not be viable for mass production or export.

    The Role of LocalVerse in Strengthening Local Markets

    Here at LocalVerse, digital innovation is utilised to support local economies, helping them thrive in an increasingly globalised world. LocalVerse is a UK-based research and development company that leverages digitalization and decentralization to revitalize local markets. By offering an online marketplace tailored for independent businesses, small vendors are enabled to reach a broader audience through increased discoverability of their products without the need for significant technological investments.

    Our approach directly aligns with the principles of economic sustainability, as it allows consumers to shop locally through digital means while ensuring that money remains within their communities. Additionally, by promoting local sourcing and minimizing transportation emissions, LocalVerse contributes to environmental sustainability, reinforcing the importance of responsible consumption.

    By integrating digital tools with traditional markets, LocalVerse helps small businesses remain competitive in an evolving retail landscape. Their platform strengthens community engagement, supports employment, and fosters a more resilient and self-sustaining local economy.

    Conclusion

    The multifaceted contributions of local markets to the UK’s economic growth and employment landscape are evident. They serve as incubators for small businesses, generate significant economic activity, and provide diverse employment opportunities. By supporting local markets, digital innovations like LocalVerse can revitalise the high street with a renewed sense of community spirit, economic resilience, sustainability, and vibrant local culture.

  • The Importance of Supporting Local Businesses

    Supporting local businesses in the UK is crucial for fostering economic sustainability and enhancing community well-being. By choosing to shop locally, consumers play a direct role in strengthening the local economy, promoting community growth, and ensuring a resilient future.

    Economic Benefits of Supporting Local Businesses

    When consumers shop at local businesses, a significant portion of their spending remains within the community. This circulation of money helps create job opportunities, reduces unemployment rates, and supports other local providers through a multiplier effect. As a result, local incomes increase, and the overall financial health of the community improves.

    Economic Benefits of Local Businesses

    Moreover, small-scale, locally owned businesses contribute to more prosperous and connected communities. They often procure goods and services from other local providers, which further helps to stimulate economic activity within the area.

    Community Growth and Sustainability

    Local businesses are integral to preserving the unique character of communities. They reflect the distinctiveness of their areas, contributing to a sense of identity and pride among residents. By supporting these businesses, consumers help maintain the cultural fabric of their communities.

    Additionally, local businesses often engage in sustainable practices, such as sourcing products locally, which reduces transportation emissions and waste. This environmental consideration aligns with broader goals of sustainability and responsible consumption.

    Challenges and the Need for Support

    Despite their importance, local businesses face challenges that can threaten their survival. Economic pressures, policy changes, and competition from larger chains can create difficult operating conditions. For instance, recent budgetary decisions have led to increased financial strain on small businesses, resulting in closures and economic downturns in some communities.

    To counter these challenges, government initiatives are being proposed to support local economies. These include restructuring procurement rules to allow councils to favour small businesses and setting targets for government departments to allocate more contracts to small and medium-sized enterprises. Such measures aim to stimulate local growth and job creation.

    Conclusion

    Supporting local businesses is vital for economic sustainability and the positive impact it has on communities. By choosing to shop locally, consumers contribute to a cycle of economic activity that supports livelihoods, fosters community growth, and promotes environmental sustainability. In these ways, local businesses are not just commercial entities but are foundational to the health and vibrancy of their communities.

  • 2023 – 2024 Retail Performance

    The retail landscape is constantly evolving, shaped by shifting consumer behaviour, economic trends, and industry innovations. This analysis explores key insights behind the rise and fall of sales across various retail sectors in the UK from 2023 to  2024, based on data from the Office of National Statistics and major news sources.

    Independent Clothing Stores 

    Independent clothing retailers in the UK faced significant struggles in  2024, with a widespread decline in sales compared to 2023

    While there was some improvement during the holiday season, overall figures remained well below previous levels. The rising cost of living, high inflation, and increased operational expenses, including soaring energy costs and staff wages, placed substantial pressure on these businesses. Furthermore, the continued shift to online shopping made competition fierce, with many independent stores failing to maintain their customer base.

    Independent Household Stores 

    Independent household goods stores also experienced sharp declines, failing to meet any of their 2023 quarterly sales figures. Major retailers such as  DFS and  Wickes reported weakened demand for high-cost household items, attributing this to consumers exercising caution with discretionary spending amid economic uncertainty. Rising mortgage rates and the broader cost-of-living crisis further dampened consumer confidence in making large purchases, significantly affecting the home improvement and furniture sectors.

    Retail Store Closures

    Store closures surged across the UK in 2024, with nearly 13,500 retail locations shutting their doors—marking a 28% increase from 2023. Independent retailers bore the brunt of this downturn, accounting for 84.1% of closures. Even established brands like Superdry and Ted Baker struggled, citing tough trading conditions and significant drops in revenue that led to the closure of multiple locations. The shift towards online retail, coupled with higher rent and business rates, contributed to the widespread downturn for brick-and-mortar stores.

    Independent Food Stores 

    Conversely, independent food stores witnessed growth, driven by a record £1B in investments in 2024, up from £646M in 2023 This funding was directed toward store refurbishments, implementation of energy-efficient technologies, and crime prevention measures.

    Consumer behaviour also played a role, as shoppers increasingly sought high-quality, locally sourced products. Upmarket grocers such as Booths saw a 6.7% rise in annual sales, exceeding £300M for the first time, as foot traffic and basket spend increased.

    Castore & Telecom Sales

    Castore, the British sportswear brand, reported a record-breaking trading period in December 2024, with a 16% rise in sales. The growth was fuelled by a surge in demand for football shirts and Formula One merchandise, reflecting the increasing influence of sports fandom on retail trends. The global sports and outdoor toys market is also on track to expand at a compound annual growth rate of 4.6% from 2025 to 2034, driven by heightened health consciousness and a shift towards active lifestyles and outdoor recreation.

    The UK’s telecom and computer sectors saw significant gains in 2024, propelled by technological advancements and increased consumer spending. The release of new AI-driven products, particularly from major companies like Apple, led to a nearly 35% surge in sales of telecoms and computers in September alone. This contributed to a 1.9% overall increase in retail sales for the third quarter, the highest since mid-2021. Additionally, the UK telecommunications market grew to £22.12B in 2023, with forecasts indicating a compound annual growth rate of 5.1% from 2024 to 2032. This expansion is largely driven by the rapid deployment of 5G networks and the increasing adoption of Open RAN technology, which offers more flexible and cost-effective network solutions.

    Conclusion

    The UK retail sector in 2024 saw mixed fortunes, with some industries thriving while others struggled. Independent clothing and household goods stores faced declines due to rising costs and cautious spending, while sectors like food retail, fuel stations, and tech-driven markets benefited from strategic investments and shifting consumer preferences. Trends such as the rise of collectibles, health-focused spending, and AI advancements highlight the importance of adaptability. As the retail landscape continues to evolve, businesses that embrace innovation and respond to consumer needs will be best positioned for long-term success.