As a raft of high street closures sweeps the UK, The Daily Star asked AI how it thought key sectors on the high street would fare in the coming years.
The news comes as big-name brands including M&S and Tesco have announced they will be closing some stores, while Boots are expected to shutter some 300 stores by the end of the summer.
But with such an alarming wave of closures crashing down around the UK at the moment, how will key sectors hold up over the next couple years? To answer this, the Daily Star looked into the closest thing it has to a crystal ball – ChatGPT – and by the looks of it, even our bargain pound shops may struggle on the high street in the future.
READ MORE: Death of high street edges closer as Amazon prepares to debut futuristic new device
Click for more of the latest news from across the world from the Daily Star.
Here’s what it had to say about some of the key areas:
Bargain and Discount Stores
(Image: In Pictures via Getty Images)
It said :”While bargain and discount stores have shown resilience in the face of economic challenges, they are not immune to the changes affecting the broader retail landscape.”
- Challenge: Online retail giants like Amazon and eBay, along with newer online discount platforms, offer consumers convenience, competitive pricing, and a broader range of products. The ability to compare prices instantly and access customer reviews makes online shopping increasingly attractive, even for bargain hunters.
- Impact: Discount stores that rely on physical locations may struggle to compete with the convenience and often lower prices available online, potentially leading to store closures or reduced foot traffic.
Traditional Retail Fashion
(Image: Jonathan Buckmaster)
- Challenges: The fashion retail sector has been facing significant disruption due to the rise of e-commerce, fast fashion, and changing consumer habits. The trend towards online shopping, coupled with the increasing popularity of second-hand and rental fashion, is expected to continue, making it difficult for traditional fashion retailers to sustain a large physical presence.
- Likely Impact: Many mid-range fashion brands may close stores or completely move online. Brands that do not innovate or offer a unique in-store experience will particularly struggle.
Department Stores
(Image: Jonathan Buckmaster)
- Challenges: Department stores have been in decline for years, struggling to compete with online retailers and specialty stores. The traditional department store model, which relies on a wide range of products under one roof, is becoming less relevant as consumers prefer more specialized or online shopping experiences.
- Likely Impact: Further closures of large department stores are expected, with the remaining few potentially repurposing their space for mixed-use developments or focusing on more experiential retail formats.
Casual Dining Chains
- Challenges: The casual dining sector has been hit hard by changing dining preferences, rising costs, and competition from both fast-casual and high-end dining. The COVID-19 pandemic accelerated the shift towards home delivery and takeout, which may persist even as dining out recovers.
- Likely Impact: Many chain restaurants may struggle to maintain profitability, leading to further closures and a shift towards smaller, more flexible dining formats or ghost kitchens (delivery-only restaurants).
Traditional Bookstores
(Image: Getty Images)
- Challenges: Despite a recent resurgence in interest, traditional bookstores continue to face stiff competition from e-commerce giants like Amazon, which offer greater convenience, broader selection, and often lower prices. The shift to digital media and e-books also reduces the demand for physical books.
- Likely Impact: Smaller independent bookstores may survive if they focus on niche markets or community events, but larger chains may continue to close stores or scale back operations, especially in less profitable locations.
Electronics and Gadget Stores
- Challenges: The rise of online shopping and direct-to-consumer sales from manufacturers (like Apple, Samsung, etc.) are eroding the need for physical electronics stores. Additionally, consumers often use brick-and-mortar stores as showrooms before purchasing online, further diminishing their profitability.
- Likely Impact: Many electronics retailers may close stores or transition to smaller, experience-focused outlets. Some might move towards online-only sales or significantly reduce their high street footprint.
Bank Branches
(Image: BPM)
- Challenges: The rise of digital banking and mobile apps has drastically reduced the need for physical bank branches. Many customers prefer the convenience of managing their finances online, and banks are responding by closing branches to cut costs.
- Likely Impact: Continued closures of bank branches are expected, with most banks operating only a few flagship locations or transitioning to digital-first services. Financial institutions may focus on creating digital hubs or multi-use community spaces rather than traditional branches.
Travel Agencies
(Image: Getty Images)
- Challenges: The travel industry has shifted largely online, with consumers preferring to book flights, hotels, and vacations through online platforms. The traditional travel agency model has been under pressure for years, and the COVID-19 pandemic accelerated the trend towards self-service booking.
- Likely Impact: High street travel agencies are likely to continue declining, with most closing their physical locations. Some may survive by focusing on niche markets or offering highly personalized services, but the sector overall will shrink significantly.
Newsagents and Convenience Stores
- Challenges: With the decline in physical newspaper and magazine sales, as well as increased competition from supermarkets and online grocery delivery services, traditional newsagents and small convenience stores face ongoing challenges.
- Likely Impact: Many independent newsagents may close, particularly those that rely heavily on print media sales. Convenience stores that do not adapt by diversifying their product offerings or integrating with delivery services may also struggle.
Stationery and Office Supply Stores
(Image: In Pictures via Getty Images)
- Challenges: The shift towards digital communication and paperless offices has reduced the demand for traditional stationery and office supplies. Online retailers often offer lower prices and a wider selection, further undermining the need for physical stores.
- Likely Impact: Stationery stores, particularly chains like Ryman or Office Outlet, may continue to see closures. They may survive in some niches or locations, but overall, the sector is likely to contract.
Home Entertainment Stores
- Challenges: The ongoing shift towards digital streaming services for movies, music, and games has significantly reduced the demand for physical media. Stores that once thrived on DVD, CD, and video game sales are increasingly redundant.
- Likely Impact: Many home entertainment stores will likely close, with a few possibly transforming into specialist or nostalgia-driven shops catering to collectors or hobbyists.
So now AI has had its long winded say (never shuts up), the high street is already struggling but the predicted future seems to be worse. Will we have a high street at all by then?