UK Retail Marketbeat Reports

For the data behind the commentary, download the full Q4 2025 UK Retail Report.

WHAT AWAITS IN 2026?

The UK retail market enters 2026 with renewed momentum and growing confidence. Last year saw resilient trading from major retailers, further strengthening in occupier demand, and a steady uplift in investment activity. 2025 saw a number of retailers reaffirm their commitment to physical first retail strategies. Many brands continued to elevate the in-store experience, investing heavily in premium fit-outs and experiential formats to differentiate themselves in an increasingly competitive landscape. Despite further headwinds as we move into 2026, the retail sector appears set for continued improvement, supported by stabilising macro-economic conditions, easing inflation, and sustained appetite from both occupiers and investors.

OUT-PERFORMANCE SHIFTING PERCEPTION

2025 saw the retail market rise to the top of the performance charts, posting strong returns, and buoyed strong income growth across a range of all sectors. Having previously seen a number of investor groups reduce allocations to the sector, 2025 highlights once again the value proposition of the retail asset class and array of opportunities on offer to investors. Much improved financial market conditions, increasing competition between lenders into the sector, and renewed vigour within the occupational markets points to an exciting year ahead. With the sector offering a range of entry points, and a variety of investment product available we anticipate to see an increase in volumes, and a growing number of re-entrants into the market. Investors and analysts alike will be closely watching the deal pipeline as we proceed through the first half of the year.