UK retail and consumer trends 2025

The UK retail and consumer market is currently experiencing numerous shifts, driven by both consumer behaviour and broader economic changes. We explore the five main trends predicted to have the biggest effect on the UK retail and consumer sectors this year.

Shift to retail parks

In 2025, there is a noticeable shift towards retail parks compared to traditional high street stores. Major, established brands such H&M, Zara, and Sports Direct are opening flagship stores in retail parks, offering a wider range of products and a more immersive shopping experience. This trend is driven by the capability of retail parks to house larger store units, which attract more customers, aided by their existing infrastructure of public transport and convenient parking.

The budget

The cost of living crisis continues to impact consumer spending habits. With rising prices and economic uncertainty, consumers are increasingly selective and budget-conscious. Retailers are responding by offering more affordable options and discounts to attract price-sensitive shoppers. This trend is evident in the popularity of outlet stores and discount retailers, which provide quality products at lower prices.

Inflation

Inflation remains a significant challenge for both consumers and retailers. The British Retail Consortium highlights that prices are on the rise, affecting the entire spectrum of consumer goods – farmers are similarly reporting higher operating costs which in turn affects supermarket costs. These price rises naturally puts pressure on household budgets and further influences purchasing decisions. Retailers are finding ways to mitigate the impact of inflation by optimising their supply chains and offering promotions to maintain customer loyalty.

Influencers, social media, and younger consumers

The influence of social media and younger consumers on retail trends cannot be overstated. Brands are increasingly leveraging influencers to promote their products in order to reach younger audiences. Social media platforms like TikTok and Instagram are driving trends and shaping consumer preferences. For example, the brand Adanola recently collaborated with Kendall Jenner on a collection which rapidly sold out, highlighting the power and reach of influencer marketing.

AI and digital revamp

The integration of AI and digital technology is revolutionising the retail industry. From AI-powered personalisation stations in fragrance stores to digital touchpoints that enhance the omnichannel shopping experience, technology is playing a crucial role in attracting and retaining customers. Retailers are investing in digital innovations to streamline operations, improve customer service, and offer personalised shopping experiences. This trend is expected to continue as technology becomes more advanced and accessible, as consumers expect to seamlessly transition between physical and digital platforms.

Our interim specialists identify seasoned, talented executives who assist organisations in navigating these changes through strategic leadership, cost management proficiency, and innovative transformations to target workforce optimisation, automation, and enhanced customer engagement.