Retail High Street Revival: How Physical Stores Are Making a Comeback in 2025

Retail High Street Revival

The UK retail sector is experiencing a resurgence in physical store high street revivals, with shops expanding and reestablishing their in-store presence. Forrester forecasts that physical retail will make up almost 80% of global retail sales in 2025. This trend signals that the high street is far from dead; instead, it’s evolving. As retailers adapt to changing consumer behaviours and market conditions, they are poised to thrive in this new landscape. This retail rebirth movement demonstrates the sector’s resilience and adaptability, suggesting a shift towards meeting consumer needs and behaviours on the shop floor. 

 

Retail High Street Expansion Trends 

Several major retailers have announced ambitious expansion plans for 2025: 

  • The Range aims to open 10 new superstores each month 
  • Co-op plans to launch 75 new stores this year 
  • Holland & Barrett is looking to add 50 new locations 
  • Waterstones intends to open at least a dozen new bookshops 

These expansion plans reflect a growing optimism in the retail sector to stamp its mark back on the high street with a renewed focus on physical store presence. 

 

Successful Retail High Street Revival Comebacks 

In recent years, we’ve witnessed impressive physical store comebacks from retailers who faced significant challenges: 

Wilko: After going into administration in 2023, Wilko is making a strong return. They’ve already reopened stores in several cities and plan to open 300 new stores across the UK. 

HMV: The music retailer, which nearly closed in 2019 in the face of worldwide Covid lockdown measures, has grown to over 120 UK outlets. Under Doug Putman’s ownership, HMV has returned to profit in 2022, reopening their flagship Oxford Street store in November 2023. 

Toys R Us: Following the closure of all UK stores in 2018, the brand has returned through a partnership with WHSmith, with 37 new concessions opening within WHSmith stores following a successful trial period in 2022 

Greggs: The bakery chain achieved a pre-tax profit of £204m in 2024 by better understanding customer behaviours and implementing digital innovations like their mobile app. 

Homebase: After facing difficulties in 2018, Homebase has steadily reopened stores, with centres already open and a further 14 planned store openings in 2025. 

 

Factors Driving the Retail High Street Revival

Several factors contribute to this retail sector revival: 

  1. Adapting to changing consumer behaviours: Retailers are reimagining their business models to meet evolving customer expectations. 
  2. Omnichannel strategies: Successful retailers are integrating physical and digital experiences to provide seamless shopping journeys from home to high street. 
  3. Focus on customer experience: Stores are creating unique, engaging experiences that cannot be replicated online such as leisurely browsing and smart app features rewarding loyalty.  
  4. Operational efficiency: Retailers are leveraging technology to streamline operations and reduce costs such as stock management systems to reduce waste.  
  5. Sustainability initiatives: Many retailers are incorporating eco-friendly practices to appeal to environmentally conscious consumers, a frontrunner in modern consumer buying behaviours. 

 

Ongoing Challenges in the Retail Landscape 

Despite the resurgence of physical stores, the retail sector continues to face significant challenges. The ongoing inflation and cost of living crisis remain major concerns, as they impact consumer spending habits. Many households are cautious with discretionary spending, affecting retailers across various categories. Additionally, supply chain disruptions and labour shortages pose operational challenges, from inventory management to service quality. These factors underscore the need for retailers to remain agile and adaptable in their strategies. 

 

Emerging Technologies and Concepts in Retail 

The future of retail is being shaped by innovative technologies and evolving concepts. Artificial Intelligence (AI) is poised to transform various aspects of retail, enhancing personalised shopping experiences and improving operational efficiency. Augmented Reality (AR) and Virtual Reality (VR) are also becoming integral, allowing customers to interact with products in immersive ways. A digital outlook for retailers may be necessary in remaining competitive, and incorporating technologies into physical store locations will be essential for combating online purchasing trends. Retailers are also leveraging their customer data to create retail media networks, offering targeted advertising opportunities and new revenue streams. As these technologies continue to evolve, retailers who successfully integrate them into their operations will be well-positioned to thrive in the dynamic retail landscape of the future. 

 

The Future of Retail Shop Floors 

The retail sector’s resilience is evident in recent market forecasts. An outlook survey of 43 senior retail leaders found that 85% expect sales in 2025 to surpass 2024 levels, up from 71% last year (Knight Frank). This renewed confidence, coupled with stabilising vacancy rates and positive rental growth, suggests that the retail rebirth of physical stores is set to continue. 

As we witness these exciting developments, it’s clear that the future of retail belongs to those who can innovate, adapt, and continuously optimise the customer experience. The high street is far from dead – it’s evolving, and those retailers who embrace this change are poised for success in the years to come. 

 

At Nine Feet Tall we specialise in transformation in Retail, helping retailers to innovate, strategise and ultimately reach new heights. Get in touch today to get your revival on track and make it a success.

 

Sources:
https://www.retail-week.com/stores/the-range-has-debuted-its-homebase-garden-centre-with-a-new-store/7047936.article#:~:text=The%20brand%20aims%20to%20open,from%20the%20locations%20it%20bought. 
https://www.retail-insight-network.com/news/co-op-plans-75-new-stores-for-2025/#:~:text=Co%2Dop%20has%20announced%20plans,ensures%20accessibility%20for%20its%20customers. 
https://www.retailgazette.co.uk/blog/2025/03/holland-barrett-concept-store/#:~:text=Back%20in%20October%2C%20Holland%20%26%20Barrett,partners%2C%20according%20to%20The%20Grocer 
https://retail-systems.com/rs/Waterstones_Plans_Expansion.php#:~:text=Waterstones%20plans%20expansion%20with%20dozen%20new%20UK%20stores%20after%20’solid%20Christmas’,-By%20Jonathan%20Easton&text=Waterstones%20is%20set%20to%20expand,a%20successful%20festive%20trading%20period. 
https://www.knightfrank.com/research/article/2024-12-13-the-retail-note-retail-back-in-the-game 
https://www.reuters.com/lifestyle/century-after-debut-uk-music-store-hmv-makes-oxford-street-return-2023-11-24/#:~:text=HMV%20fell%20into%20administration%20in,and%20plans%20further%20European%20expansion. 
https://www.express.co.uk/news/uk/2028256/homebase-new-openings-April-locations 
https://www.timeout.com/uk/news/toys-r-us-is-returning-to-the-uk-heres-the-full-list-of-new-stores-060123 
https://www.ninefeettall.com/greggs-are-on-a-roll-lessons-from-a-204m-profit-in-2024/ 
https://www.retailgazette.co.uk/blog/2024/08/wilko-300-stores/ 
https://mitsloan.mit.edu/ideas-made-to-matter/future-physical-retail-5-actions-to-elevate-customer-experience#:~:text=Shoppers%20are%20finding%20their%20way,global%20retail%20sales%20in%202025. 

Why Choose Us

At Nine Feet Tall, we quickly integrate into your team, building momentum from day one while sharing our expertise to upskill your staff. Our open and honest communication style ensures transparency without unnecessary bureaucracy. With a deep understanding of industry challenges and trends, we bring fresh insights and best practices, empowering your organisation to realise the full benefits of change.

Frequently Asked Questions

What factors are driving the resurgence of physical stores on the high street?

The resurgence is driven by several factors, including retailers adapting to changing consumer behaviors, implementing omnichannel strategies to integrate physical and digital experiences, focusing on enhancing customer experiences, and leveraging operational efficiencies through technology. Additionally, sustainability initiatives are becoming increasingly important to appeal to environmentally conscious consumers.

How are retailers successfully reviving their presence on the high street?

Retailers are successfully reviving their presence by focusing on customer-centric strategies, such as creating unique in-store experiences that cannot be replicated online. Examples include Wilko reopening stores, HMV returning to profitability, and Toys R Us partnering with WHSmith. These strategies help build brand loyalty and attract customers back to physical stores.

What role does technology play in the future of high street retail?

Technology plays a crucial role in the future of high street retail by enabling omnichannel experiences, enhancing operational efficiency, and providing personalised customer interactions. Technologies like AI, AR, and VR are being integrated into physical stores to offer immersive experiences and improve customer engagement. Additionally, data-driven insights help retailers optimise their strategies and adapt to changing consumer behaviors.

From the blog

  • Digital Fundraising Trends for Charities: Strategies for Success

  • Preparing Your Team for ERP Implementation: A Guide to Navigating Change

  • From Proposal to Approval: 7 Steps to Ensure Business Case Approval