Retailers Face Shifting Consumer Trends 2026

Jacqui Baker, head of retail at RSM UK, outlines five key themes set to shape the UK retail industry in 2026, based on recent consumer data. She highlights fragile consumer confidence—nearly 60% plan to save or continue saving over the next three months—rising health and beauty spend (10% overall, 19% among Gen Z), the growing role of TikTok/Instagram for discovery, weakened brand loyalty and divergent sustainability priorities.
Key Points
- 1Flag fragile consumer confidence: nearly 60% plan to save more or continue saving next three months
- 2Note rising health-and-beauty spending: 10% overall, 19% among Gen Z, signaling a 'lipstick effect'
- 3Advise retailers to prioritize seamless mobile-online journeys, AI-driven personalization, and sustainable second-hand initiatives
Scoring Rationale
Moderate novelty and industry-wide relevance provide useful practitioner insight, but single-source commentary and limited new data constrain confidence.
Sources
Public references used for this report.
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