Retail Gazette speaks to Keith McDonald, vice president of small merchant partnerships at American Express, about the rise of the ‘viral pilgrimage’, what Gen Z wants from stores and why retailers need to make sure the experience lives up to the hype. 

For years, retailers have been warned that the smartphone is dragging shoppers away from the high street. Increasingly, the opposite appears to be true. 

New research from American Express, conducted with Retail Economics, estimates that social media now drives 1.7 billion visits to UK high streets each year, equivalent to more than 30 million visits a week. 

Almost two-thirds of UK adults have visited a shop, restaurant or hospitality venue in the past year after being influenced by something they saw on social media. Among Gen Z, that rises to 88 per cent. 

Perhaps more strikingly, 35 per cent of Gen Z consumers have travelled to another city or region to buy a product they first saw trending online, while 87 per cent said they would be prepared to queue for something sufficiently sought after. 

American Express describes the phenomenon as the ‘viral pilgrimage economy’. 

Keith McDonald, vice president of small merchant partnerships at American Express, says the figures point to a generation that is looking for more from convenience. 

“Gen Z particularly are looking for unique experiences,” he says. “They want to be pioneers, they want to discover that special place. 

“I think they also want something that they can share. They want unique experiences and they want things they can celebrate and share with their friends.” 

When the journey becomes part of the purchase 

McDonald has experienced the viral pilgrimage effect himself. A keen cyclist, he recalls travelling more than an hour on an independent bike shop in Crawley when he was looking for a new bike several years ago. 

He had already done his research and visited a number of retailers, but the experience at the store made the longer trip worthwhile, he says. “The experience was second to none,” he says. “They were excited about me getting the bike. 

“Although it was over an hour to get there, I felt really good about it.” 

He has since returned several times. 

It’s an older-fashioned version of a behaviour that TikTok, Instagram and other platforms can now create almost overnight. 

A bakery can suddenly become famous for one pastry whilst a collectable can generate queues before a shop has even opened. A 60-second video can turn an independent retailer into a national destination. 

Yet there’s a distinction between the friction customers actively choose and the friction they resent. 

A long journey or queue for a coveted product can become part of the anticipation. Reaching the till only to find the retailer doesn’t accept a preferred payment method is something else entirely. 

“You’ve got to deliver on the promise,” McDonald says. 

“Irrespective of whether you’re a small or large business, you’ve got to deliver. If you have a disconnect between what you’re portraying online and what the actual experience is, that’s a problem.” 

Turning virality into repeat business 

The bigger question for retailers is what happens when the algorithm moves on. Social media can generate an extraordinary short-term spike in interest, but turning those first-time visitors into repeat customers is considerably more valuable. 

Here, the Amex research suggests the benefits can last. More than four in five consumers return to a business after a socially influenced first visit, rising to 96 per cent among Gen Z. 

Customers can then become marketers themselves. Nearly eight in 10 shared their most recent visit in some way, whether through a recommendation, social post or online review. 

McDonald believes that makes social media too significant to dismiss as a passing trend. “For me, it’s an innate part of the product,” he says. 

“The businesses that manage to harness that opportunity are the ones that are going to be super successful in the future. There has to be the delivery, and then that will get people back again.” 

He points to family-run sweet shop Randalls in Market Harborough, which saw a video showing staff packing a customer’s £270 pick-and-mix order attract more than 12 million views. 

The business says its daily in-store takings have since tripled, while customers have travelled from across the country to visit. 

“He’s seen not only that spike, which is great, but the business has also maintained it and repeated it, and he’s seeing steady growth off the back of it,” McDonald says. 

“So if you deliver, the opportunities are significant.” 

Nor does McDonald believe businesses need to operate in an obviously social-media-friendly sector. 

“The range of businesses that have managed to harness social media is really interesting,” he says. “From bakeries to pizza restaurants, to wool shops, car mechanics. 

“I saw the Singing Dentist not that long ago. If you can make dentistry entertaining, any business can harness this trend..” 

For independent retailers in particular, that presents an opportunity to reach audiences that traditional advertising budgets might put beyond them. 

Almost half of Gen Z’s socially influenced high street spending goes to small and independent businesses, according to the research. 

“My instinct is that this trend is sustainable,” McDonald says. 

“You’ve got this massive cohort of younger consumers who are quite clearly using social media as part of their everyday life and how known through their behaviours that social media does drive their spending habits. 

“I don’t think it’s a flash in the pan.” 

Preparing for the viral spike 

Going viral, however, can create its own challenges. 

Stock runs out, staff are stretched and websites can struggle with unexpected demand. Retail’s old seasonal calendar is also becoming less predictable when a single post can create an abrupt surge in traffic. 

McDonald says retailers need to make sure the things they can  control are dealt with before the customers arrive. 

“There are certain things you can control when you’re running a business and certain things that are maybe less controllable,” he says. “Payments is one of the ones that should be straightforward. It should be frictionless. 

“Part of the approach should be making sure the things you can control are buttoned down.” 

That means having payment systems ready, clearly displaying which methods are accepted and ensuring customers can pay their preferred way. 

McDonald says four in 10 merchants report regularly being asked for payment types they do not support, while almost 40 per cent recognise that the payment experience is becoming an increasingly important consideration for consumers. 

“If you’ve got friction in that purchase process, consumers might choose to go somewhere else,” he says. 

“Every business (and it’s tough out there) needs to convert every sale they possibly can.” 

American Express has itself been working to remove friction for merchants. The number of UK locations accepting Amex has tripled since 2021, with McDonald’s team working with acquiring and payment partners to make acceptance available through providers those small businesses already use. 

One of the clearest messages from retailers, he says, was simply: “I just want to go to one place for all my payments needs.” 

For small businesses juggling staffing, stock and customer service, McDonald argues payments should not become another operational headache. 

“If you’re running a small business, you’ve got a lot of things to think about and a lot of challenges,” he says. “Payments shouldn’t be one of them.” 

A new route to the high street 

The benefits of social-media-driven visits can also spread beyond the businesses that originally attracted the customer. 

Almost a third of consumers visited additional nearby shops, restaurants or venues during the same trip, while 22 per cent of Gen Z shoppers spent more than they had originally intended once they arrived. 

That gives the social media debate a different complexion. Rather than simply competing with stores, online discovery can provide the initial visit to a town centre in the first place. 

McDonald says that offers some cause for optimism at a challenging time for retailers. 

“When I talk to businesses, there’s a sense of determination,” he says. “There’s an incredible resilience having overcome numerous headwinds in recent years. 

“A lot of businesses I talk to feel that their best days are ahead of them. I think research like this puts a different lens on social media and how social content can help drive business into the high street.” 

But winning attention is only half the battle. 

The retailer still has to give the customer an experience worth travelling for, and remove any reason for them to walk away when they arrive. 

“Make life simple for consumers,” McDonald says. 

“Let’s remove any points of friction. Let’s make the consumer journey easier and simpler, and let’s encourage that consumer to come back again.”