By 2050, the UK’s high streets will be reimagined as AI-powered immersive retail experiences to capture the spending power of Gen Z, according to data from American Express and futures consultancy Trajectory.

For the generation that has grown up as digital natives (and now aged up to 28), research of more than 3,000 adults showed nearly two thirds (65%) of Gen Z shoppers say every high street visit should deliver something they can’t get online. Four in five (79%) shoppers want future retail destinations to offer far greater experiences than just shopping – demanding more dining, drinking and leisure spaces than today.

Three-fifths (59%) treat shopping as a full “day out” – building meals, leisure and culture into every trip. 82% want regular rotations of pop-ups and new venues that keep high streets vibrant; almost two thirds (64%) want spaces that feature cultural activities, galleries or theatres.

By contrast, under a third of Baby Boomers (30%) share this view, highlighting a generational shift set to redefine Britain’s high streets.

“Gen Z has the potential to reshape British high streets into vibrant social hubs, where retail, hospitality and entertainment will combine, even more so than today. For businesses, that will mean offering differentiated experiences, embracing new formats, and leveraging technology to deliver convenience and personalised service at every step. This has significant implications for all in the retail ecosystem when it comes to capturing consumer spend and driving loyalty,” commented Dan Edelman, UK General Manager, Merchant Services, at American Express.

Appetite for tech-led experiences

AI is set to accelerate this evolution, with three-quarters of Gen Z (76%) believing retailers should use the technology to create more immersive stores. Three-fifths (60%) say they would be more likely to visit shops offering tech-led experiences – from digital try-ons to AI-generated personalised styling suggestions.

More than eight in ten (83%) would welcome hyper-personalised rewards and recommendations powered by AI, based on past purchases. Frictionless retail is also a priority for Gen Z shoppers, with mobile and self-checkout, speedy kerbside pick-ups and in-store digital guides ranked as important. In the future, two-thirds (65%) expect their purchases to be delivered by drone, while a similar proportion (67%) anticipate travelling to shops in driverless cars.

“We’re on the cusp of the high street being reborn as a living stage for everyday life. Picture streets where shopping flows seamlessly into co-working studios, rooftop gardens, tasting kitchens and wellness hubs. Think neighbourhoods that feel more like year-round festivals than retail strips – alive with weekly markets, cultural pop-ups and experiences you simply can’t get online. By 2050, the high street will be less about transactions and more about discovery, connection and belonging,” commented Paul Flatters, CEO, Trajectory.