Beauty, footwear, and social wellness are key drivers of UK physical retail – CACI report

While the overriding trend in UK retail sometimes seems to be all about stalling sales, closing stores and discounting, there are more positive trends too and CACI and and P-Three have just identified three of them.

The data specialist focused on people and place (CACI) and the “people-first” leasing agency for retail, restaurant, and leisure destinations (P-Three), said three key markets are starting to mature in London, “and are set to dominate the retail sector across the UK”.

And those markets are beauty, footwear, and social wellness.

We’re told the beauty market is “being transformed by three key movements: clean beauty; Korean beauty; and accessible luxury fragrance”. 

Occupier demand is an example of the trend with growing brands like Le Labo, Byredo, and Charlotte Tilbury “identifying the market potential, the former two going to Leeds recently for debut sites outside of the capital, and the latter launching new spaces in Covent Garden and Soho”. 

CACI’s Brand Dimensions data shows a 15% spending increase in June 2025 against the same month two years ago and also highlighted positive performance for brands with strong store acquisition plans. PureSeoul (+86.5%), Space NK (+20.2%), Sephora (+14.9%), and Rituals (+33.7%) has all benefitted from “significant year-on-year sales growth as of June”.

As for footwear, it’s said to be “experiencing a nostalgic revival, with fashionable brands such as Crocs, Ugg, and Birkenstock that had fallen away now regaining popularity”. CACI/P-Three also said that “simultaneously, the athleisure movement continues to grow, fuelled by ‘Gorpcore’ streetwear and sneaker culture, as evidenced by recent London openings from brands Salomon, On Running, and Saucony”. And while the market is a buoyant one, such openings also mean “some of the UK’s best-known footwear stores are under more pressure, with greater market share being taken by the newer challenger brands”.

The social wellness trend has also emerged with a focus on fitness and self-improvement within a community setting. This “reflects changing habits among health-conscious Gen Z and Millennials who are moving away from a drinking culture and toward fitness-oriented lifestyles”. Growth in gym visits is well known 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”.

Hannah McNamara, co-founder of P-Three, commented: “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.”