Withstanding the test of Retail in 2025

After a year defined by conscious consumerism, economic pressures and technological advancements, what will it take for retailers to not just survive, but to truly thrive in today’s retail landscape?

There have been significant changes to retail as we know it, but some things remain consistent – convenience is one of the key drivers in consumer purchasing. Although online shopping offers convenience in some aspects, physical retail stores provide unique convenience benefits such as the ability to see, touch and try-on a product prior to purchasing, avoiding the expense and hassle that may come with delivery and returns.

It therefore follows that the resurgence of physical stores is an ongoing trend in retail. British jewellery brand, Monica Vinader, Swiss manufacturer of luxury watches, Audemars Piguet, and more recently, British luxury womenswear brand, Me+Em, have set up shop on Manchester city centre’s prestigious King Street.

With online retail reported to have plateaued at around 27% of total retail sales in the UK in 2024 and the demand for personalised shopping experiences, digital-first retailers are expanding into physical stores – referred to as the “clicks to bricks” trend.  This omnichannel approach acknowledges the consumer’s desire to be able to move fluidly between online and physical spaces.

Despite positive signs of revival on the UK high street, tensions remain as The Centre for Retail Research forecasts over 17,000 store closures this year which is higher than the 13,479 store closures reported in 2024, highlighting the continued decline in physical retail spaces. River Island is reported to be closing 33 of its 230 stores as part of its restructuring plan to align with its consumer’s needs.

It seems pop-ups are fast becoming a low-commitment, high-impact strategy for retailers seeking to engage with existing consumers, drive brand awareness to reach new audiences and capitalise on short term opportunities, all within a flexible setting.  The growing popularity of pop-up retail is evident in its estimated contribution of over £2.3 billion to the UK economy, with 44% of consumers having visited a pop-up in the last year, and its creation of over 26,000 job opportunities. While it is not a definitive solution to the ongoing struggles of the UK high street, it is a flexible and cost-effective option for retailers – especially the smaller ones – to establish a physical presence and foster a sense of community.

Personalisation and Artificial Intelligence (‘AI’) may seem to be quite the contradiction but today’s most forward-thinking retailers, such as Amazon, are continuously showcasing that smart technology can enhance consumer experiences, not dilute it. But as retailers race to innovate, is equal weight given to the environmental impact of digital convenience?

Sustainability remains a key area of focus, with the introduction of policy regulations like the Extended Producer Responsibility (‘EPR’), pushing retailers to adopt more environmentally responsible practices when it comes to product packaging or face the risk of significant financial implications.  The EPR transfers the responsibility of managing waste and recycling from the local government to manufacturers and retailers, to encourage environmentally astute and conscious packaging decisions.

Retailers are also increasingly integrating resale into their business models to meet growing consumer demand for environmentally friendly practices, while utilising the opportunity to capitalise on the thriving resale market. Luxury retailer, Selfridges, and its ‘Reselfridges’ platform is a prime example of this – the platform brings together resale, rental, repair, refill and recycle services under one circular ecosystem as part of the retailer’s Project Earth initiative.

A necessary evolution in retail is diversity and inclusivity. The reflection of diverse realities of today’s consumers in products, marketing, and in online and offline shopping experiences, has proven to drive loyalty and widen consumer reach. Simply put: the more people feel seen and valued, the more people show up.   Fenty Beauty is a clear front-runner in diversity and inclusivity in the beauty space, with its foundation range catering to 50 different skin tones and  its marketing campaigns featuring models of various body types, ethnicities and abilities. Its authentic representation challenged and redefined traditional beauty norms, contributing to the brand’s success today.

As 2025 unfolds, retail will likely continue to feel the tension of fluctuating consumer sentiments.  Join me at pro-manchester’s annual retail lunch, taking place on 5^th August 2025, to hear directly from a panel of retail industry leaders on how they are navigating shifting consumer behaviours, keeping up with emerging trends, and what actions they are taking to weather the uncertain economic forecast.  See here for more details and to sign up.

Hanna Tiyamiyu, Trade Mark Attorney – HGF

Hanna is a Trade Mark Attorney with over five years of in-depth experience providing specialist services across the full spectrum of trade marks, including clearance of brand names, national and international filing strategy advice, filing and prosecution of trade marks, trade mark portfolio management, due diligence, IP audits, and contentious matters such as oppositions and cancellation actions.

Her experience also extends to design and copyright matters. She is skilled in advisory and contentious work pertaining to online enforcement matters, including social media takedowns, infringement disputes on e-commerce platforms, domain name disputes and company name complaints.

Hanna is enthusiastic, personable and driven. She adopts a pragmatic and commercial approach to all aspects of her work, and has experience working with a diverse range of clients – from entrepreneurs and start-ups, through to SMEs, universities and large multinational corporations – across various industries, including fashion and retail, food and drinks, construction, education, automotive, healthcare, and general consumer goods.