American Express: independent businesses capture nearly half of Gen Z’s social-driven spend
Four in five (80%) Gen Z consumers have visited an independent business after discovering it on social media, according to new research from American Express. Among those who have made the trip, the longest journey they have taken averages 95 minutes, highlighting the lengths young consumers will go to visit trending independent businesses.
The Hype to High Street study points to Gen Z consumers leading an emerging ‘viral pilgrimage’ economy, helping drive footfall to small, independent businesses – such as a shop, café or restaurant – after being influenced by content they saw on social media. Nearly two-thirds (62%) of Gen Z actively research businesses on social before deciding to visit, while 58% say it has introduced them to a new independent business they otherwise would never have discovered.
This discovery quickly translates into action. More than half (53%) visit within a week of first seeing a business online, while almost one in five (19%) have planned an entire day out around visiting a trending or viral independent business. And they are not just making one-off visits; three in five (61%) return after their first trip.
Of those that had previously visited a business they discovered through social content, respondents said they had spent, on average, almost an hour (56 minutes) queuing for trending and in-demand products and experiences.
Looking at the business benefit of this trend, analysis from Retail Economics estimates that independent businesses now capture almost half (47%) of all social-influenced high street spending by Gen Z, demonstrating the positive impact social content can have in helping local businesses punch above their weight.
Gen Z are not only discovering and visiting independent businesses they discovered on social – they’re actively encouraging others to do the same. When reflecting on the last independent business they visited, a third (33%) of respondents said they enjoyed being able to recommend unique products and experiences to friends and family. One in six said they shared their visit on their own social accounts – helping fuel a continuous cycle of discovery for small businesses.
Dan Edelman, general manager, UK Merchant Services at American Express, said: “Our research points to a fast-growing ‘scroll to store’ trend led by Gen Z consumers, where social media discovery is translating directly into visits and spending with small, independent businesses. With their growing influence and spending power, Gen Z are showcasing new opportunities for businesses to boost revenue, build loyalty and bring more people onto Britain’s high streets.”
The ‘viral pilgrimage’ trend in action
When Jarrod Burke started filming himself packing orders at his family-run sweet shop, Randalls in Market Harborough, and uploading them to social media, he couldn’t have foreseen the huge impact it has had on the business.
He said: “Since our videos went viral, we have seen Gen Z customers travelling from all over the country, and the world, to visit our sweet shop. For these younger customers, it’s not just about buying the sweets, it’s the whole experience – the traditional jars, the old weighing scales and meeting the business owner behind the social media videos. Older generations might think it’s odd to queue for hours at a sweet shop, but for the Gen Z customers we welcome, that’s the appeal – they want to be part of a viral moment.”
In the UK since 2021, the number of locations accepting American Express has tripled, including more UK small businesses than ever before.
Amex is the founder and principal support of Small Business Saturday in the UK, now in its 14th year. Small Business Saturday is the UK’s most successful small business campaign, which takes place each year on the first weekend in December.