Sustaining retail behaviour: Small business adaptation to hybrid working and urban decline

Abstract

The decline of UK high streets has accelerated dramatically since the pandemic, driven by hybrid working patterns and shifting consumer behaviour. Small independent retailers face unprecedented pressure to adapt, yet little is known about the behavioural strategies they employ to sustain viability in declining urban centres. This systematic review synthesises evidence from forty peer-reviewed empirical studies to identify four distinct adaptation pathways: digital transformation, omnichannel integration, spatial reconfiguration, and sustainability-oriented community engagement. Applying a behavioural sustainability lens, the review reveals how adaptive responses are shaped not only by firm-level capabilities but also by cognitive constraints, social norms, and institutional environments. Findings show that successful adaptation emerges when behavioural change at the firm level aligns with supportive governance structures and collaborative networks at the local economy level. The review advances the Integrated Retail Sustainability Framework as a mechanism-based explanation of how small retailers navigate structural urban disruption while sustaining commercial viability. The findings carry direct implications for local economic development policy, high street regeneration strategies, and business support programmes in post-pandemic UK cities.