Retail & Consumer Horizon Scanner
Introduction
Retail is one of the firm’s most important and vibrant sectors; our National Team work with over 400 Retailers and Brands in the UK and internationally. Our dedicated team of lawyers specialising in this fast-moving sector understand not only the demands that Retailers face, but also the opportunities the sector presents.
In the latest edition of our Retail and Consumer Horizon Scanner, you’ll find a clear, concise view of the trends shaping the sector, along with the key legal developments to watch. It’s designed to help you spot opportunities early, understand emerging legal risks, and make confident, forward thinking decisions for 2026 and beyond.
Our Retail and Consumer Horizon Scanner is split into two parts:
1. What’s trending?
In this section, we spotlight the biggest market and consumer trends shaping retail right now – from shifting shopping behaviours to the innovations driving growth. It’s your quick route to understanding what’s influencing strategies and success across the sector.
We also feature a guest contribution from accountancy firm MHA, who share their predictions for the retail and consumer sector in 2026.
2. Legal developments
Using the button below, you can browse the key legal and regulatory changes coming your way as of January 2026. We’ve organised this section by core legal disciplines so you can quickly find what matters most to your business.
Philippa Dempster
Senior Partner | Head of Retail | London Office Managing Partner
Rebecca Pearson
Senior Business Development Manager
Retailers face labour shortages, higher expectations and productivity pressure. Success in 2026 demands better retention, flexible working, wellbeing support, automation, and updated policies for employment law reforms and worker protections.
Consumer demand for health and wellness is rising, from personalised nutrition to clean‑label and gut‑health products. Functional snacks, wellness drinks and weight‑loss trends are shifting habits, requiring responsible innovation amid stricter advertising rules.
Loyalty programmes stay essential, benefiting shoppers and retailers. As AI enables smarter recommendations and rewards, data use grows, making transparency, minimisation, lawful processing and responsible AI crucial for maintaining trust.
Retail and leisure are shifting toward immersive, experience‑led spaces. Operators invest in engaging formats, flexible leases and personalised tech, while experiential destinations outperform, making design, data, partnerships and property strategy vital for 2026 growth.
UK consumers switch between saving and splurging, cutting everyday treats but spending on meaningful rewards. Food and grocery remain resilient, while fashion and beauty favour practicality, wellness and accessible luxury.
Social commerce is becoming a core retail channel, with platforms like Instagram and TikTok driving fast, frictionless purchasing and projected UK growth to £16bn by 2028.
Sustainability is now a major driver of consumer choice, with rising demand for ethical products, transparent ESG action, and circular practices.
AI is transforming retail through automation, personalisation and robotics, but consumers still seek emotional connection. With ‘slow retail’ rising, retailers must balance innovation with human‑centred AI and strong legal and compliance foundations.
In 2026, evolving tech, regulation and expectations demand agility. MHA combines global expertise with local insight to guide organisations through complexity and growth. These are their industry predictions with Freeths.
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