London's Emerging Beauty Footwear and Wellness Markets Are Reshaping UK Retail
While the broader narrative surrounding UK retail often highlights challenges such as stalling sales, store closures, and pervasive discounting, a more optimistic current is also emerging. Data specialists CACI, focusing on people and place, alongside P-Three, a leasing agency dedicated to retail, restaurant, and leisure destinations, have pinpointed three key markets that are currently maturing in London and are poised to significantly influence the retail sector across the entire UK.
These burgeoning markets are identified as beauty, footwear, and social wellness, each displaying unique growth trajectories and consumer shifts. CACI and P-Three suggest that understanding these evolving segments is crucial for brands and landlords looking to thrive in the contemporary retail landscape.
The beauty market, in particular, is undergoing a profound transformation, driven by three distinct movements: the rise of 'clean beauty,' the increasing popularity of 'Korean beauty' (K-beauty) innovations, and a growing demand for 'accessible luxury fragrance.' This shift is evident in occupier demand, with brands like Le Labo and Byredo expanding their presence, including debut sites outside London in Leeds, while Charlotte Tilbury has launched new spaces in Covent Garden and Soho. CACI's Brand Dimensions data further corroborates this trend, showing a 15% increase in beauty spending in June 2025 compared to two years prior. Brands with robust store acquisition strategies, such as PureSeoul (+86.5%), Space NK (+20.2%), Sephora (+14.9%), and Rituals (+33.7%), have all recorded significant year-on-year sales growth as of June, underscoring the market's vitality.
Footwear is also experiencing a vibrant resurgence, characterized by a nostalgic revival. Fashionable brands like Crocs, Ugg, and Birkenstock, which had previously seen a decline in popularity, are now enjoying renewed consumer interest. Concurrently, the athleisure movement continues its ascent, bolstered by 'Gorpcore' streetwear and the enduring sneaker culture. Recent London openings from brands such as Salomon, On Running, and Saucony exemplify this trend. This dynamic market, while buoyant, also intensifies pressure on some of the UK’s long-established footwear stores, as newer challenger brands increasingly capture greater market share.
The third significant trend identified is social wellness, focusing on fitness and self-improvement within a community context. This reflects a fundamental shift in habits among health-conscious Gen Z and Millennials, who are increasingly moving away from traditional drinking culture towards more fitness-oriented lifestyles. While growth in gym memberships is well-documented, the emerging trend lies in facilities offering more comprehensive experiences. Health clubs like David Lloyd and Third Space have consistently benefited from steady sales increases every month over the past two years, indicating a strong demand for integrated wellness offerings.
Hannah McNamara, co-founder of P-Three, commented on these findings, stating: “Today’s shoppers aren’t just buying products, they’re investing in identities, experiences, and communities.” She highlighted the enduring "lipstick effect" in beauty during economic challenges and the influence of the athleisure "Gorpcore" movement, transforming leisure wear into everyday fashion. McNamara noted an evolution in London from purely transactional venues to vibrant community hubs, where fitness communities are even starting to rival traditional social spaces like pubs. She concluded that success for brands and landlords nationwide will hinge on their ability to create environments that genuinely foster connection and shared experiences.
