Retail in 2026

It is tempting to blame consumer belt-tightening. But that is only half the story: spending is proving more resilient than the headlines suggest. Shoppers are not cutting back across the board; they are making more deliberate choices about where, when and how they spend, creating new opportunities for retailers that understand and respond to their priorities.

Nor is this a mass ‘trade down’. Shoppers now rate product quality as two to four times more important than low prices when choosing where to shop. Consumers are buying less frequently but are willing to spend more on products that deliver tangible benefits. Health and wellbeing are capturing a growing share of wallet, while services and experiences are opening up growth beyond the till. As shoppers grow more discerning, loyalty must be earned through the proposition, not bought with points alone.

Our Retail Proposition Index 2026, developed in collaboration with Barclays, explores what is really shaping consumer behaviour and what this means for retailers and investors. Drawing on extensive consumer research, retailer ratings and spending data, the report identifies five shifts reshaping the market and explores how businesses can position themselves to capture the next wave of growth.