Repeat customers anchor local economies despite squeezed budgets, with 70% of UK consumers shopping locally weekly, new data from global technology company, Square, has revealed.
What’s more, 80% said their relationship with their favourite local business was more than transactional, as people crave connection. The research found that 40% described the relationship as familiar – that feeling of being recognised when you walk through the door – and another 29% said they felt connected with a personal bond with the staff.
Loyal regulars generate up to five times more annual revenue for British local businesses as they typically return to a business 11 times throughout the year, according to Square.
Quality remains the most important factor influencing consumer decisions on where to spend time locally, cited by 73% of respondents, followed by price (63%) and convenience (57%). These experiences can translate into spending growth, as in the past 12 months, 22% of consumers say they increased spending at local businesses.
John O’Beirne, CEO at Square International, said, “While some households may be tightening their belts, local spending continues to hold strong. But local growth doesn’t come from a single “big bet” moment – it’s nurtured over time, with regulars acting as stabilisers for businesses. Owners need to design their business around repeat visits and low-friction loyalty. That means combining consistent quality, human connection and convenient digital tools to make repeat visits easy and rewarding, so everyday purchases can become lasting habits.”
Repeat customers who return to the same business at least four times in a year form the backbone of local commerce, and business owners recognise this as they actively invest in marketing to build relationships with them. Use of Square’s marketing products has risen every year since 2021, and in 2025 alone, loyalty subscriptions grew by 46%. In fact, 93% of Square businesses using a marketing product successfully maintain regulars, compared to 39% of businesses that don’t use a marketing product, claimed the firm.
Looking forward, consumer confidence in local spending remains strong as more than a quarter of UK consumers (27%) say they plan to shop or dine locally more often in the next year. Consumers are willing to support local businesses even when prices rise. While affordability is a factor to consider, customers will stick with brands with higher prices if the value is obvious, with more than two-thirds (69%) saying they would continue spending with a local business if higher prices delivered better value or experience.
