American retailers are closing stores at record speed, while UK high streets are reshaping physical spaces into destinations rather than writing them off. The question is no longer if brick-and-mortar has a future, but why the US seems to be falling behind.
Picture London’s busy shopping streets where stores double as gathering spots, then contrast that with the shuttered storefronts of American malls. With this year’s increase in jewelry store closings signaling deeper cracks, the retail race between the two countries is heading in very different directions.
Read on to find out more.
Store Closures as a Warning Sign
The United States has faced a wave of high-profile retail bankruptcies and shuttered outlets, from department stores to mid-sized apparel brands. A striking example can be seen in the current increase in jewelry store closings this year, which highlights how even specialty sectors once considered resilient are struggling to keep their doors open.
The trend reflects shifting consumer habits, with shoppers prioritizing online browsing and fast delivery options over in-person visits.
While the UK has certainly endured its share of closures, particularly during the pandemic, local councils and developers have been more proactive in repurposing retail sites for mixed use. This has allowed many UK high streets to evolve rather than empty out.
The Role of Urban Density
Population density plays a major part in the divergence in the retail market. The UK’s compact cities and towns naturally concentrate foot traffic, which helps support local shops and chain outlets alike. A short walk between stores, cafes, and public transport increases the likelihood of regular in-person visits.
The US, however, has long been anchored by suburban malls and sprawling retail parks. As consumer preferences shift, these large-format spaces are proving harder to adapt. Empty anchors in malls create a ripple effect, discouraging smaller tenants and reducing overall appeal. Retailers that cannot reinvent the shopping experience quickly enough are being left behind.
Consumer Expectations and Experience
Shoppers in both countries are demanding more from physical spaces than simple transactions. However, UK retailers have responded with a heavier emphasis on experiential shopping. Examples include:
- Flagship stores that integrate dining, entertainment, and curated events
- Smaller boutiques focusing on hyper-local products and seasonal collections
- Technology-assisted shopping, such as smart mirrors and mobile checkout stations
- Community partnerships, where shops double as event spaces or cultural hubs
In the US, some retailers are experimenting with experience-driven formats, but progress is uneven. For every innovative concept, like a digitally integrated showroom, there are multiple chains cutting back on square footage rather than reimagining it.
Policy and Planning Support
Government policy has also shaped outcomes. In the UK, planning frameworks increasingly encourage landlords and councils to convert vacant retail into residential, leisure, or flexible community use. This helps preserve the vitality of town centres and prevents large gaps in the retail landscape.
The US policy environment is more fragmented, with zoning rules varying from city to city. This slows down adaptation and leaves some regions with rows of abandoned storefronts while others cautiously pilot mixed-use redevelopment.
Evolving Consumer Loyalty
British shoppers remain attached to their high streets as social spaces, often valuing the combination of convenience and familiarity. Loyalty here is tied to a sense of place as much as brand recognition. In the US, loyalty is more often tied to price and convenience, which naturally drives traffic online rather than in person.
The pandemic accelerated these tendencies, but the cultural underpinnings remain clear. For the UK, visiting local shops retains an element of tradition. For the US, convenience-driven retail increasingly wins out, even if it costs communities their gathering places.
Looking Ahead: Lessons Across the Atlantic
The future of physical retail may not be about competing with e-commerce but complementing it. The UK demonstrates that with strategic planning, adaptive reuse, and a focus on community, physical retail can remain resilient. US retailers could learn from this model by:
- Investing in store designs that create memorable experiences
- Encouraging mixed-use redevelopment to revitalize abandoned malls
- Partnering with local communities to make stores social destinations
- Embracing hybrid shopping, where digital integration enhances rather than replaces the store
