What’s in store for the retail market in 2025?
The retail and leisure market is constantly evolving. It wasn’t too long ago that high streets, large department stores, and shopping centres, were the dominant force driving the sector forwards.
The world of retail has a different look now, with online shopping, shifts in consumer preferences, and a global pandemic all reshaping the industry.
The year 2025 will mark half a decade since the country went into complete lockdown, at a time when it looked as though the market may never recover. However, some operators have found a way to thrive since then. Experiential leisure and F&B for example, have found a new lease of life over the last few years.
Although what happens to the market this year is yet to be seen, Completely Retail News spoke to industry experts to get their takes on what’s in store in 2025:
Chris Lidington, associate partner for retail and fast-moving consumer goods at CACI:
“At CACI, there are a number of trends we foresee coming into play across the year ahead.
“More retailers will start to charge a premium for convenient fulfilment of online orders and returns. We have already seen this with Asos changing their returns policy and where it has not worked following the demise of Getir in 2024.
“Owners of retail space will accelerate the move to placemaking and creating areas where people want to spend time. Retailers will need to work closer with landlords to curate experiences that monetise that footfall and complement the place.
“Consumers are demanding local products and experiences specific to them and the area they live in. Store teams will need to be empowered to capitalise on this localisation trend – something Waterstones have been at the forefront of for years!”
Stephanie Glendinning, retail relations manager at Centre:mk:
“Whilst experiential shopping trends dominated 2024, the key to retailers unlocking success in 2025 is to prioritise the efficiency of in-store experience. This means ensuring the right depth and breadth of range in stock availability, tailored accessible store hours, and a faultless customer journey that meets the needs of time-pressed consumers.
“Centre:mk’s strategic late-night openings in 2024 enhanced customer loyalty, with the destination’s double-digit growth in late-night footfall reflecting the success of aligning the right brands with customer need, while delivering operational excellence.
“With the pressure of rising inflation, consumers are prioritising convenience and accessibility, shopping around the region for the best tenant mix and store experience. Brands that perfect this seamless in-store experience will come out on top in 2025.”
Phil Hutchinson, head of Momentum Advise, The Momentum Group:
“Decision makers in the property sector are increasingly focused on creating dynamic, mixed-use spaces that go beyond traditional retail and leisure. We have seen this trend across leading destinations we work on, most notably through our work at Liverpool ONE, where we have led on retail delivery for Grosvenor over the last six years.
“From big brands to independents to clicks to bricks businesses trialling physical retail, pop-ups have been a large element of our retail delivery work, and we expect this to grow in 2025. On the leisure side, food halls remain popular, and we have witnessed leading concepts such as Gravity MAX redefining the leisure landscape.
“We expect these trends to accelerate in the coming year, driving The Momentum Group’s growth as we expand our team and build on the 60 retail delivery projects completed in 2024. Despite recent challenges, the commercial property sector is growing and adapting to evolving consumer demands, with spaces being reimagined to create flexibility and engagement. In 2025, retail will thrive as a hybrid experience, blending innovation, hospitality, and dynamic product offerings to meet changing expectations.”
Louisa Dalgleish, leasing director at Outlet Shopping at The O2:
“2025 will bring some interesting evolutions when it comes to retail and consumers.
“Firstly, the health and fitness sector is likely to flourish further. The promotion of youthful skin, body wellbeing, fitness, and nutrition has become a particular focus for Gen Z customers, especially through the realms of Instagram and TikTok.
“Secondly, destinations that champion and adapt to consumer preferences, such as embedding AI within their store experiences, will continue to attract loyal customers, making them the winners in the eyes of the consumer. We’ve seen a general trend of customers prioritising and spending their disposable income on experience. This is likely to continue, especially with the amount of leisure that is now part-in-parcel of destinations across the UK, such as The O2. Experience is everything, and we have a role to play in ensuring those wants and needs are met across every customer journey touchpoint, with AI helping us to reimagine the parameters of what’s possible.”
Jo Coburn, senior general manager at Victoria Leeds:
“The retail landscape is shifting, driven by customers’ preference for experiential shopping over online alternatives. Destinations that combine shopping, premium dining, and immersive experiences are set to thrive, as seen in our record-breaking footfall at Victoria Gate this year. Shoppers increasingly seek destinations offering more than products – they want to make a day of it, driving notable growth in demand for premium dining options.
“Collaboration between brands is expected to gain further momentum, with innovative partnerships attracting more diverse customer bases, as witnessed at Victoria Leeds. Exciting collaborations between complementary brands like Barbour and GANNI not only enhance the customer experience and leverage cross-pollination opportunities but helps build wider brand engagement and loyalty.
“Events and activations will remain key in engaging shoppers who seek beyond transactional experiences. With more brands expanding regionally and opening their first stores outside London, the importance of vibrant, well-curated destinations is only expected to grow.”
Maria Averkina, asset and development manager at Railpen:
“The retail industry has been through a challenging journey over the last few years. While investor demand for shopping centres is growing, some retail locations are dealing with long-term vacancies, cost-of-living pressures and shifting consumer habits.
“Retail destinations have transformed beyond traditional retail, with a focus on supporting tenants. Looking ahead to 2025, they will have an increased focus on developing strong strategies to shape the right tenant mix, as well as creating exceptional customer experiences, attracting visitors, and offering greater value for money. As outlet centres across the UK adapt to shoppers’ evolving needs, they are increasingly outperforming more traditional shopping locations.
“As landlords, we must collaborate with retailers, respond to market changes, and create opportunities for both brands and consumers to thrive. By prioritising partnerships, tenant retention, and consumer needs, we will continue to build shopping environments that are resilient, responsive, and ready for long-term success.”