Is the High Street on the Brink of Collapse?

Once upon a time, the cafe in the above picture used to be buzzing. That was before the once in a hundred year pandemic that we somehow had to have. Restrictions on the number of seated customers quickly happened, and then the renaissance and convenience of online shopping happened during quarantine; a combination of need versus boredom. Online shopping was (and still is) super convenient, and payment methods such as PayPal Pay in 4 and Afterpay are all too easy to obtain online versus the high street.

The original high street (as in a strip of shops, like London's Oxford Street) started to decline in the 1970's, to create incentives to the likes of Westfield to come in, even though shopping centres are an extension of the high street per se. People did not mind driving a bit further to have multiple shops under the one roof, over at least two or more levels. Yet the sudden increase in markets like farmers markets provides the best of both worlds; the socialisation aspect, and allowing for things to return back to more local roots.

The high street was on the downward spiral before the pandemic, and you now combine that with high inflation and the rising cost of living, with income from all sources (except for real estate and Bitcoin profits) not keeping up with such economic and monetary demands.

Higher rents and council taxes (to name) are dis-incentivising the high street from passing on better bargains to customers, like online shopping can. The high street was originally a UK icon, yet the high street shopping strip is commonplace globally. Seeing an abundance of empty shops is not fun, eve though high street types of businesses from cafes to clothing shops tend to have a life cycle before the novelty wears off, and people are wanting change. Customers want variety, not limited menus. Choice is better than no choice, and when it comes to us consumers spending our hard earned dollars, we want that choice. Shopping online gives you the power of choice from the comfort and privacy of your own home, even though that too comes with a myriad of challenges. According to PwC UK, a total of 38 stores on UK's high street have closed every day in 2024 thus far.

The power lies in the consumer, yet according to Scott Pape, the Barefoot Investor; sites like Temu has turned shopping into gambling, rather than a pleasurable experience. Why? Low prices to begin with, and that life is a risk. Nothing wrong with Temu (and other copycats), yet their popularity lies in giving consumers the power of choice with super cheap prices, that it is worth a whirl in buying a few times at a time, and never mind landfill if one item arrives cracked, or is smaller than expected. People move on, and therefore do not complain about such. Well you got the dopamine hit right, with multiple items arriving as if they were from Santa? Yes, the element of the gamble here, while the environment can also take a bit of a swipe. There is less resistance around the same item that retails for $14, as opposed to the same item normally being worth $140 online, and more via the high street. And there is no friction, no waiting, and no talking with the cyber world. (Cybersecurity issues aside, although robberies and arson can also occur in the high street.)

Sure, online shopping serves a purpose, yet the high street is the epitome of the Australian and UK cultures; and the latter would be true to form in the US and other parts of the world. Human beings are social creatures, and we need to get out of the house. There is only so much time you can spend in nature, and everything is a balance. I do not know about you, yet I personally like to see, touch, initially try on, and feel the clothes and shoes I wish to buy for myself for the sake of the longevity of my wardrobe, and to take the right item/s home that very same day - all the while enjoying a coffee at a nearby cafe on the same excursion.

This is why I am in support of the high street. It is the community aspect, combined with the variety and social interactions in such shop settings. There are many streets, and even some shopping malls that have boarded up shops ready for lease; yet there is a street in Crows Nest in Sydney's Willoughby Road in Australia that is a fitting example of the high street at work, as well as thriving and being a success post Covid. People living in other nearby areas such as Naremburn and North Sydney will delightfully walk 30-minutes (which is what yours truly does quite often) to this village of Crows Nest. Just to enjoy a coffee, buy a candle, get a facial, go to the bank, and buy a few groceries from the supermarket to name. If you own a dog, you can even bring it inside the local pet store in that village to buy dog treats, and fido will be given a treat and a few cuddles by the staff.

The empathy, community and human element is missing with online shopping. There are some purchases that are fitting and appropriate for online consumption in terms of efficiency and in saving time like booking flights and accommodation for travel purposes; yet for other things, the high street serves a purpose, and knowing the economic struggles of the high street is a sad and sorry state. The now 13-day strike between Woolworths workers and the unions would be far from helpful, as many of the shelves in Woolworths supermarkets across two states of Australia currently lay bare, as at the time of writing.

Shopping centres provide occasional incentives to bring people into malls, from free valet parking to free refreshments, competitions, and in centre activities to name. Such shopping centres also ensure that there are paid for activities to bring people in, from paint and sip workshops to life drawing sessions to name. It is crazy how some people would line up for 30-minutes for a free coffee promotion, whereas you would be better off going to a nearby cafe and paying $5 for the same cup of coffee, only waiting for a tiny fraction of that time. Whether you have an abundance of time on your hands, or you are strapped for time; at the end of the day, your time is still valuable. In saying this, some of the provided incentives are worth lining up for.

Speaking of incentives, to encourage people to eat at restaurants and cafes; the Government in my state (New South Wales) brought out dine and discover vouchers after the first Covid lockdown back in 2020. Each household was given four $25 vouchers to use on four separate occasions. Some eateries posed restrictions on such, while others allowed you to use them as freely as possible. And recently in my local area, the state transport department provided $25 eGift cards, as a form of respite from the home to go out and enjoy this voucher at shops and shopping centres, while local construction works were taking place over the final weekend in November 2024.

There is a lot of talk about tariffs due to the MAGA Leader (I get that some of you lovely readers are still upset with the results of the US Elections a few weeks ago, as at the time of writing - hence I shall not mention his name directly) being elected as the 47th President of the USA; yet it makes you wonder. Would other Governments consider imposing tariffs (25% or any amount) on online purchases, so to bring consumers back to the high street, to preserve that country's culture? Although what I am about to share is a little off topic; yet a few other Australian residents have been mentioning that tariffs should be charged on kids under the age of 16 who use social media in Australia, for when that new law comes into effect. There is a lot of fear around tariffs, and hence it makes you wonder if such a tax is an effective incentive to go the other way so to speak.

What do you think? Is the high street on the brink of collapse? Would you be ok if the high street was no longer? Why or why not? Furthermore, if you are a fan of the high street as much as I am (although I like online shopping for some parts of my life); what incentives can the Government, or even the high street itself bring out that would be enticing, without inflating the economy too significantly?