Shoppers are set to spend almost £90 billion in the top 10 UK cities by 2029, up £8.2 billion from 2024, as locals and international tourists flock to these engaging retail hubs, states a report released today (Oct 14), urging retailers to concentrate their efforts on those locations.
Additionally, these spaces provide ample opportunity to create destination appeal through experiential retail, pulling spend away from smaller towns, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Retail Locations Series: UK Top 10 Cities 2024-2029”, reveals that almost a quarter of the UK’s physical retail sales will come from the top 10 cities by 2029.
This figure is on the rise, after the appeal of these cities stagnated between 2019 and 2024 due to the disproportionate impact of the COVID-19 pandemic.
Top 10 cities referenced include Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, and Sheffield
Zoe Mills, Lead Retail Analyst at GlobalData, comments, “As the top 10 cities begin to account for a bigger piece of the offline retail pie, these locations will be drawing in spend among locals from smaller cities and towns.
"Secondary high street locations will struggle to compete, becoming more community hubs rather than retail destinations. For many retailers, the top 10 cities are where it is essential to have a flagship store that incorporates experiences and events to emphasise why consumers should visit.
"Stores on smaller local high streets still need investment, but with a different focus on omnichannel, with retailers using these shops to engage with online shoppers via click & collect.”
Growth in offline spending in the health and beauty sector will significantly contribute to the shift towards the top 10 cities in the UK, as beauty specialists expand their presence in these locations.