CACI and P-three reveal emerging trends set to dominate UK retail

CACI, the data specialists focused on people and place, and P-Three, the people-first leasing agency for retail, restaurant, and leisure destinations, have revealed three key markets that are starting to mature in London, and are set to dominate the retail sector across the UK: Beauty, Footwear, and Social Wellness.

The beauty market is being transformed by three key movements: clean beauty; Korean beauty; and accessible luxury fragrance. This shift is reflected in occupier demand, with premium 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 confirms these trends, showing a 15% spending increase comparing June 2025 with the same month in 2023. It has also highlighted positive performance for brands with strong store acquisition plans, as PureSeoul (+86.5%), Space NK (+20.2%), Sephora (+14.9%), and Rituals (+33.7%) have all benefitted from significant year-on-year sales growth as of June.

The footwear industry is experiencing a nostalgic revival, with fashionable brands such as Crocs, Uggs, and Birkenstocks that had fallen away now regaining popularity. 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. As a consequence, some of the UK’s best-known footwear stores are under more pressure, with greater market share being taken by the newer challenger brands.

A focus on social wellness has also emerged, particularly looking at 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. 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, 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."

This news follows CACI's findings that earlier this year spending had risen significantly in gyms and fitness-centric brands, with the likes of lululemon continuing that 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.