UK Retail Marketbeat Reports

For the data behind the commentary, download the full Q3 2025 UK Retail Report.

What’s on the Horizon for Retail in 2026?

As 2025 draws to a close, the retail market has shown remarkable resilience. Across virtually all subsectors, we’ve witnessed a strong recovery in both investment and occupational activity. Retail is firmly back in the spotlight for investors, with assets delivering impressive returns and major developments attracting a wave of exciting new brands.

However, as we look ahead to 2026, optimism is tempered by the realities of fiscal tightening following the November Autumn Budget, ongoing economic challenges, and the quest for political stability. While it’s easy to adopt a cautious outlook, it’s important to remember that Q4 is a pivotal and dynamic period for retailers and F&B operators alike, a time of both opportunity and transformation.

Retail Investment on the Rise

The retail sector is seeing renewed momentum, with key deals and the launch of prime developments signalling a brighter future for prime and super-prime retail assets. After a period of focus on smaller lot sizes in out-of-town and food store sectors, the tide is turning. Lenders are showing increased confidence, fuelling demand for larger lot sizes and high-value assets.

Recent landmark transactions underscore this shift. URW’s acquisition of a 25% stake in the regenerated St James Quarter and the trading of a 50% share in the Bullring are just two examples of heightened activity in the market. These high-profile deals, coupled with the exceptional quality of assets, many of which are considered iconic, are broadening investor interest and reaffirming the sector’s appeal.