Top 5 – UK Retail and Consumer Trends
Trend 1 – AI is changing the online shopping journey
AI has hit the scene in a big way with the likes of Chat GPT Search, Copilot and Perplexity, and adoption among younger consumers is happening rapidly. The latest data shows that 37% of UK consumers under 40 years of age use AI at least half of the time they do a search – that’s twice as many as the 16% of over 50s who frequently use an AI search engine. Among younger consumers, habitual use of AI for search (used “most” or “all” of the time) stands at 21%, which shows how quickly new behaviours can become engrained.
Trend 2 – Gen Z consumer confidence has been dented
They’re the demographic most likely to say they feel neither positive or negative about the government (32%), although negative sentiment outweighs positive (43% versus 25%). This age group (18-27) remain unconvinced by the government’s economic plans, with half lacking confidence to spend. This is already having an impact on Gen Z’s spending habits; there’s been a +6 percentage point increase in cautious spending since last year (to 39.5%) and a corresponding -6 pp decline in spending freely (to 36%).
Trend 3 – Resurgence of brick-and-mortar stores
It might sound counterintuitive, especially following the “retail apocalypse” where brick and mortar stores were closing at an alarming rate due to the rise of ecommerce sites, but most Gen Z consumers prefer the in-store experience.
In a survey of 1,000 consumers aged 18 to 26, 61% reported that they now prefer shopping in a physical store rather than online. This is attributed to the fact that Gen Z buyers feel they spend more wisely when shopping in-store (50%) and are uncomfortable with the amount of money they spend when shopping online (33%).
Plus, the Halo Effect means that physical stores actually tend to boost online sales.
Trend 4 – Social commerce
The rise of social networks has contributed to changing the way consumers shop. Trends on these platforms drive users to purchase items they come across when exploring content or scrolling on their personalised feeds.
These platforms also give consumers the ability to investigate a brand and buy items without leaving the app. This is particularly important for younger buyers whose trust in a brand is heavily reliant on social proof.
With a tech-savvy population and a strong social media presence, the UK’s social commerce market is expected to grow by 26.6% annually, reaching US$31.27 billion in 2024. And the future is looking bright with predicted social commerce GMV in the UK to reach $83 billion by 2029.
Trend 5 – Hybrid retail experiences
Hybrid retail experiences blend online and in-store shopping. Online stores are more than just places for consumers to shop; they’re showrooms, distribution centers, and even entertainment venues. By incorporating omnichannel behaviors into operations, a physical store can improve its relationship with customers and boost sales.
Retailers can use augmented reality (AR) to create virtual simulations for consumers to interact with a product. For example, stores might offer virtual try-ons for clothes or design simulations to show how a piece of furniture might look in a specific space.
Consumer shopping trends indicate that these types of services are not only convenient but also profitable. The vast majority of brands that already use AR (86%) note that it helps to drive sales and attract new customers.
Stay on top of the retail trends shaping the future
Consumer behaviour is the number one driver of retail trends. As always, retail companies will need to stay ahead of the curve in 2025 if they want to improve their sales numbers.
It’s important to pay attention to consumer preferences like sustainability, personalisation, and the desire for tech-powered shopping experiences — while also taking note of the increasing desire for privacy and data security.
For more detailed insights and to see the full report please contact dan@bluetigermarketing.co.uk.
Sources:
Attest – 2025 consumer trends report
Statista – Social commerce 2025
