The death and revival of the UK High Street
The British High Street has seen better days. According to the Local Data Company, there was a net closure rate of 14 stores a day in 2023. The UK is not alone in this struggle: the US and Europe are reporting store closure rates of 5% per annum. Boarded-up shopfronts, declining foot traffic, and the rise of digital-first retail strategies have led many to predict the death of traditional brick-and-mortar stores. The movement towards e-commerce has been relentless, with more than one in four UK retail sales happening online during 2023, according to the Office for National Statistics (ONS).
Rising rents, operational costs, and the aftermath of the COVID-19 pandemic have compounded the challenges faced by physical retailers. Vacancy rates for retail properties across the UK reached 14% at the start of 2024- a staggering indicator of the crisis. On the brand side, Nike saw its stock price drop by around 20% to a four-year low, caused by slowing online sales and higher-than-expected inventory levels.
But amid this bleak landscape, change is brewing. Some retailers are rethinking their strategies, deploying hybrid models that blend digital and physical experiences. The future of retail may lie in a hybrid approach, where physical stores become a key differentiator in an increasingly crowded online shopping landscape.
Building back, brick by brick
Brick-and-mortar stores offer brand experiences that online platforms cannot replicate. These physical interactions help to create customer loyalty, with omnichannel customers – those who interact with a brand both online and offline – spending up to 30% more than single-channel shoppers. As digital marketing costs rise and competition intensifies, global brands are looking for new ways to increase sales and improve margins. Enter influencers.
Traditionally associated with generating online sales, influencers are now proving their ability to impact in-store performance. By collaborating with brands, influencers are bridging the gap between online engagement and physical retail, inspiring their followers to visit stores and experience products firsthand.
Influencing the crowd
The growth of the influencer economy has been one of the most significant developments in retail marketing over the last decade. According to global advertising and marketing agency, Dentsu, the influencer marketing industry is set to exceed $24 billion globally by the end of 2024, driven by the rise of micro and nano influencers and the growing preference for authentic, creator-led content.
While seen as a tool for brand awareness and online engagement, influencers are now recognised for their potential to impact in-store sales. According to our own data, 70% of the total ROI from influencer engagement is found in-store, rather than online. This is a turning point in how retailers approach influencer marketing, especially in the UK, where physical retail is fighting to remain relevant.
In our experience, brands that have constructed their influencer strategies to include in-store promotion have seen a measurable impact. O ur data also suggests that when optimised with omnichannel metrics, influencer campaigns demonstrated a positive ROI of 60%, a clear indication that influencers’ reach extends far beyond the digital. The key to this is measurement: you can’t track what you can’t see, and an omnichannel view is needed to trace the footsteps into stores.
Retailers such as Mango, IKEA, and Calzedonia have seen measurable success by incorporating influencers into their omnichannel strategies. Mango’s partnerships, for example, showcase collections in relatable, real-world settings, encouraging customers to visit stores to explore these looks firsthand. Similarly, Calzedonia’s targeted campaigns featuring micro-influencers have led to more foot traffic to their physical locations, while IKEA’s collaborations focus on lifestyle content that inspires in-store visits to curated showrooms.
A maturing market
The influencer economy has grown from its early days of sponsored posts and giveaways to become a mature marketing channel capable of delivering strong ROI. UK influencer marketing spend was expected to reach $1.17bn in 2024, as a result of brands recognising the value of long-term partnerships and investing in tools to measure impact across all touchpoints.
Omnichannel metrics have revolutionised how influencer campaigns are evaluated. Brands can now track online conversions, in-store purchases, and foot traffic, gaining a holistic understanding of the customer journey. This level of insight enables retailers to justify their investments in influencers and physical stores while optimising campaigns for maximum impact.
Influencers have also adapted to this new reality. Beyond promoting products, they now curate entire brand experiences, blending storytelling, personalisation, and community building. Their ability to connect with audiences both online and offline makes them a valuable asset in omnichannel strategies. Influencers can drive not only sales but also loyalty and engagement, creating meaningful connections that traditional advertising often fails to achieve.
The role of community and engagement
One of the reasons influencers are so effective in bringing about in-store traffic is their ability to create a sense of community and engagement. Through authentic content and direct interaction with their followers, influencers build trust and relatability. This sense of connection often translates into a desire to engage with the brands they endorse – both online and in person.
In-store meet-and-greets or influencer-hosted launch parties further enhance this connection. These experiences give followers a chance to engage with their favourite creators while exploring a brand’s offerings in a physical setting. For example, collaborations that include exclusive in-store promotions or product unveilings often see increased foot traffic and sales.
Challenges in measuring offline impact
While the benefits of influencer marketing in physical retail are clear, measuring their impact remains a challenge for many brands. Unlike online sales, where data points like click-through rates and conversion metrics are readily available, tracking in-store purchases influenced by digital campaigns requires sophisticated analytics.
However, the adoption of advanced omnichannel tracking tools is helping bridge this gap. By integrating data from online interactions, social media campaigns, and in-store transactions, retailers can now create a cohesive picture of the customer journey. These insights not only demonstrate the value of influencer-driven foot traffic but also allow brands to fine-tune their strategies for greater efficiency and ROI.
Influencers as a pillar of the future high street
The UK high street is not dead – it just looks different to the way it did before. In an era where customer experience is paramount, influencers are uniquely placed to connect the dots between digital and physical retail. By driving foot traffic and in-store engagement, they play a crucial role in revitalising the high street and creating a hybrid shopping model that combines the best of both worlds.
As vacancy rates reveal the ongoing challenges faced by physical retail, the integration of influencers into omnichannel strategies offers a path forward. Retailers that use this approach will not only remain relevant but also thrive in an increasingly competitive market. Influencers’ ability to connect with consumers on a personal level and drive tangible outcomes makes them a cornerstone of modern retail strategy.
On the ground, however, our Black Friday 2024 analysis of the UK’s top 30 retailers revealed a missed opportunity to fully mobilise influencers, despite their proven impact. While Instagram was the most popular platform with 344 influencers generating 448 pieces of content and reaching 20.5 million consumers, TikTok had little activity except one viral post. It was also noteworthy how many of the top 30 retailers failed to do anything over this peak trading period. This disparity reveals the untapped potential of influencers to drive ROI and engage audiences both online and in-store. Expanding influencer strategies across platforms could unlock significant value in future retail campaigns
Collaboration beyond sales
The value influencers bring to the high street extends beyond immediate sales. They serve as cultural ambassadors for brands, often shaping the way consumers perceive and interact with fashion. Their ability to highlight sustainability efforts, promote inclusivity, or spotlight local craftsmanship resonates deeply with today’s socially conscious shoppers.
Retailers can tap into this cultural influence to improve their brand narrative. For instance, influencer campaigns that focus on sustainable fashion lines or limited-edition collaborations can create a sense of urgency and exclusivity, driving foot traffic to physical stores. These campaigns often encourage customers to become brand advocates themselves, further amplifying the impact of the initial influencer partnership.
Retail redefined
The rise of influencer marketing has transformed the way high-street fashion brands engage with their audiences. While much of the focus has been on online sales, the impact of influencers extends far beyond digital platforms. By encouraging in-store visits and creating physical brand experiences, influencers are helping to redefine the future of retail.
As the industry continues to change, the ability to measure and optimise the impact of influencer marketing will be a defining factor in success. High-street retailers and fashion brands that recognise the full potential of their influencer partnerships will not only adapt to changing consumer behaviours but also lead the charge in revitalising the UK high street, one storefront at a time. With a blend of authenticity, community building, and omnichannel innovation, influencers are proving that the high street still holds a vital place in modern retail.
