Retail & Consumer Products

The Goods UK: 2025 – Retro, but Restorative

 What’s in: this week’s trends

  • Go well(ness): Health and wellness has increased in importance and played a key role in influencing purchasing decisions. From lighter lunches to less alcohol and increasing gym memberships to matcha-mania, there was no doubt a reprioritisation of wellness-orientated indulgences as the year progressed ( Barclays). Take dirty laundry as evidence; detergent companies are reinventing formulas to tackle green matcha stains, granting the popular tea the top spot as “stain of the year” (The Guardian). This mindset has fed into travel decisions too, with a rise of “detox holidays” consisting of leaving your phone in a box, or taking a Pilates class while abroad (The Sun).  

  • Stuck in Neverland: Crazes for Labubu, Jellycat and Smiski were evidence of nostalgia-seeking, “kiddults” using toys as a vessel for happiness and escapism (The Guardian). Research suggests this trend has been in the making for years, with the pandemic accelerating a return to the simple thrill of toys, resulting in 47% of adults buying to help their mental health (BBC). Whether it’s caused by the Peter Pan syndrome, or the urge to collect the rarest Sonny Angel, 2025 was the year where the popularity of collectibles was unmatched (Vogue).  

Cash or card: shopper behaviour

It’s time to look back on what was most frequently added to our shopping trolleys in 2025. 

  • The power of nowstalgia: A wave of nostalgia – dubbed ‘nowstalgia’ – dominated music, fashion and culture as shoppers turned to iconic days-gone-by for basket inspiration. Oasis became the soundtrack of the summer and fuelled a retro spending boom spanning technology, homeware and wardrobes alike (Retail Times). Bucket hat sales jumped 40%, while parkas, baggy trousers and sheer dresses enjoyed a strong resurgence. Consumers revamped their homes to reflect yesteryear, with floral 70s wallpaper, bold 80s colours and mid-century furniture proving popular (Good Housekeeping). The rapid rise of the Y2K aesthetic – think butterfly clips and flip-phones – is allegedly helping reconnect young people with a sense of safety closely associated with childhood (Forbes).
  • Mend it, don’t end it: There’s increasingly desire to boost the UK’s repair culture. 93% of Londoners said that they have repaired an item in the past year, up from 72% in 2020 (Junk Bunk) whilst among Gen Z, eight in ten reported buying a pre-loved fashion piece in addition to admitting that they frequently wear something which is more than 30 years old. This means that of the coats, dresses and jumpers lining the younger generation’s wardrobe were made before they were born (John Lewis).
  • It’s the little things: This summer we saw consumers flocked to the tills to treat themselves to smaller and more affordable luxuries – dubbed ‘the lipstick effect’ by Estee Lauder’s Leonard Lauder, describing the phenomenon of booming demand for little indulgences during times of tighter budgets and economic stress (The Times). It’s the same in the period of giving to others where stats show that Brits are ditching big-ticket Christmas gift items in favour of “micro gifting” – 22% saying that they do not intend to buy anyone a singular, pricey item, opting instead to give lots of smaller gifts. The shift comes down to people approaching the holidays more thoughtfully – as not only are smaller gifts generally cheaper, but they can be personalised. Top presents include chocolates, cosy socks and scented candles, with the research indicating that Gen Z is embracing the trend more than other generations (The Sun).

Making moves: industry changes & innovation

ICYMI, this year, we saw industry icons rebuild their brands in unique and creative ways. Here are the movers and shakers that stood out: 

  • Bots bring bargains: Throughout the course of the year, AI has not only become an integral tool in both how retailers target their audiences and ensure efficiencies, but also how consumers interact with brands. Data from CI&T has revealed that 61% of UK consumers have used AI to assist with their shopping, most often identifying the best deals for specific products in a bid to secure best value for money (BBC). Elsewhere, the use of technology has revolutionised the travel industry, with 18% of 25-34 year olds now using ChatGPT to provide inspiration for their next holiday (The Guardian); a momentum that is expected to continue next year.
  • Retail, re-Imagined: With research revealing that 51% of Gen Z prefer to purchase items physically, we have seen a notable shift in how retailers are attracting more customers in to stores, through experiential retail (YouGov). Brands including Superdrug have launched immersive concept stores with ‘Beauty Playgrounds’ allowing customers to interact with products and speak with ambassadors before buying (Retail Gazette). Nevertheless, Brits still love to shop from the comfort of their homes, on their favoured social media site – TikTok. The app which has 1.5 billion users, has resulted in retailers investing 30% more in advertising over the Christmas period and TikTok Shop users reached a record high (The Times). Searches for ‘Christmas wish list’ were up 4000% this November as 1 in 4 are planning to Christmas shop on TikTok (Advanced Television).  
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The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.

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