New research reveals three markets set to dominate UK retail
New research from data specialists CACI and leasing agency P-Three suggests that three key markets are set to dominate the UK retail market: beauty, footwear, and social wellness.
According to the report, the beauty market is being transformed by three key movements: clean beauty; Korean beauty; and accessible luxury fragrance. This shift has been reflected in occupier demand, with premium brands like Le Labo and Byredo choosing Leeds for their debuts outside of London, while Charlotte Tilbury has launched new spaces in Covent Garden and Soho.
CACI’s Brand Dimensions data correlates with these trends, showing a 15% spending increase in this market comparing June 2025 with the same month in 2023. It has also noted positive performance for brands with strong store acquisition plans, with PureSeoul (+86.5%), Space NK (+20.2%), Sephora (+14.9%), and Rituals (+33.7%) all benefiting from year-on-year sales growth as of June.
Meanwhile, the footwear industry is experiencing a nostalgic revival, with brands such as Crocs, Uggs, and Birkenstocks regaining their popularity. Simultaneously, the athleisure movement has continued to grow, fuelled by ‘Gorpcore’ streetwear and sneaker culture. This is evidenced by recent openings in London from brands such as Salomon, On Running, and Saucony. As a result, some of the UK’s more established footwear stores are under pressure, with a greater market share being taken by the newer challenger brands.
Finally, a focus on social wellness has also emerged, especially with fitness and self-improvement in a community setting. This reflects changing habits among health-conscious Gen Z and Millennials who are moving toward more fitness-oriented lifestyles. Sales growth in gym use has been well documented, but the emerging trend is in facilities that offer more, with health clubs David Lloyd and Third Space both benefitting from steady sales increases in every month over the last two years.
Martha Dobbs, senior consultant at CACI, said: “In today’s rapidly evolving retail landscape, trend tracking has become critical for success. Our Brand Dimensions data doesn’t just reflect current performance – it helps predict future movements by analysing spending patterns, market shares, and transaction values across digital and physical channels. What we’re seeing in a new wave of beauty, footwear, and wellness in London isn’t just seasonal variation, but fundamental shifts in consumer behaviour that will reverberate across retail strategies in the entire country for years to come.”
Hannah McNamara, co–founder of P-Three, added: “Today’s shoppers aren’t just buying products, they’re investing in identities, experiences, and communities. The lipstick effect shows beauty thrives even in challenging economic times, while the athleisure ‘Gorpcore’ movement demonstrates how leisure and adventure wear has become an everyday fashion. In London in particular, we’re seeing an evolution from transactional venues to hubs, where fitness communities are even rivalling traditional social spaces like pubs. For brands and landlords throughout the country, success will depend on creating environments that foster genuine connection and shared experiences.”
This follows CACI’s recent findings that earlier this year spending had risen significantly in gyms and fitness-centric brands such as Lululemon, which continued its sales growth into 2025 with consistent year-on-year uplifts. This performance reflects the emerging trend of gym use and social wellness among Gen Z and Millennials.