Clothing, Footwear & Leather Goods Retailing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Clothing, Footwear & Leather Goods Retailing in the UK industry analysis

Over the five years through 2025, clothing, footwear and leather goods retailing revenue is expected to swell at a compound annual rate of 1.5%.  European fashion retailers are accelerating nearshoring to reduce supply chain risks, improve agility and meet sustainability goals, despite higher regional labour costs and trade complexities. As wage inflation persists and consumer price sensitivity remains high, operational efficiency and workforce strategy are becoming critical levers for retailers. Those that adapt pricing, diversify sales channels and localise assortments will be best positioned to thrive in a cautious, value-focused market. The brands responding with relevance and reach – not just price – will define the next phase of retail performance in Europe. Consumer caution is driving value-focused shopping, limiting profit, and value retailers like Primark are outperforming mid-market peers, prompting brands such as Inditex and Hugo Boss to expand off-price, low-cost and resale channels to stay competitive with increasingly price-sensitive shoppers. Even luxury retailers in Europe face slowing global sales. Brands are shifting to entry-level goods, direct-to-consumer sales and personalised experiences. In 2025, revenue is anticipated to dip by 0.9% to €333.6 billion thanks to low disposable income and sluggish consumer confidence.

Trends and Insights

• Fast fashion faces backlash. The low-cost, high-volume model suffers due to increasing consumer and regulatory scrutiny over environmental and social impacts, pushing giants like Inditex and H&M to launch more sustainable strategies.
• Fierce online competition hits clothing sales. As fashion evolves, online retailers and clothing rental platforms are rapidly drawing customers away from traditional stores with their ability to cater to varied tastes and occasions.
• The sheer volume of small retailers makes the industry competitive. Clothing, footwear and accessories retailers can benefit from sticking to specific markets or business models, like budget vs luxury or casual vs formal attire.