Retail Reimagined: The Five Trends Shaping UK Retail in 2025 as Gen Z Drives Optimism and Change

Shoppers Want Seamless, Sustainable, and Rewarding Journeys 

Global marketing leader dentsu today launches the second quarterly edition of its 2025 Consumer Navigator report, revealing five key trends reshaping UK retail. As Gen Z leads a cautious wave of optimism, the report offers brands a clear roadmap to meet evolving consumer expectations across discovery, loyalty, and experience.

The Five Trends Defining UK Retail in Q2 2025 

• Confidence Edging Up 
  After a prolonged period of economic uncertainty, UK consumers are beginning to feel more optimistic. Confidence in the economy has risen from under 20% to 28% in just three months, with Gen Z leading the charge – over half (51%) now believe the economy is in good or even in excellent shape. This renewed optimism is translating into planning spending on travel, wellness, and life experiences, especially among younger generations. For brands, this signals a timely opportunity to re-engage consumers with bold, forward-looking campaigns.  
• Stories Drive Sales 
  In an era of content overload, storytelling is emerging as a key differentiator. Gen Z is most influenced by trusted publications (e.g. reviews, blogs) (30%) and peer recommendations (54%), favouring authenticity over aggressive promotions. While older generations still respond to discounts, younger generations are drawn to brands that build credibility through content, partnerships, and purpose-driven narratives. Native advertising, influencer collaborations, and editorial-style storytelling are proving powerful in driving conversation. 
• Personalisation is Paramount 
  Consumers now expect seamless, personalised experiences across online and in-store shopping, with 35% wanting consistency in both. Gen Z and Millennials lead this demand, valuing cross-brand offers, real-time updates, and loyalty perks. Their openness to sharing data contrasts with older generations’ caution. For brands, the challenge is to deliver transparent, trust-building personalisation that respects privacy while enhancing the full customer journey through smart use of data and technology. 
• Loyalty is Redefined 
  Traditional loyalty programmes are evolving. While grocery and general retail memberships remain popular, Gen Z and Millennials are driving a surge in fashion and beauty subscriptions, up 60% from Gen X to Gen Z. Interestingly, Gen Z is more willing to pay for shipping than older generations, suggesting they value experience and exclusivity over confidence alone. Brands must rethink loyalty as a holistic value exchange, offering perks, access, and community, not just points.  
• Sustainability vs. Convenience 
  Gen Z is known for its values-driven approach, and sustainability remains a top priority. However, convenience still plays a decisive role in purchase decisions.  One in five Gen Z prioritise convenience over sustainability, though many seek a balance. This generation is also more willing to pay for quality, with 19% choosing quality over price – nearly double the rate of Boomers. Brands must be transparent, ethical, and efficient to win trust and loyalty.  

“Gen Z is reshaping the retail landscape with expectations that go far beyond price and convenience,” said Dan Truman, Group Chief Strategy Officer at dentsu UK&I. “They’re optimistic, values-driven, and expect seamless, personalised experiences across every channel. But they also demand transparency and authenticity in return for their loyalty. The five trends in our latest Consumer Navigator report offer brands a clear blueprint to not only meet these expectations but to build lasting, trust-based relationships with the next generation of shoppers.” 

Truman continued: “While challenges remain, we’re seeing early signs of a shift in consumer sentiment – especially among younger generations. “Although modest, this gradual return of optimism signals an opportunity for brands to re-engage audiences. But marketers must remain sensitive to the financial pressures many consumers still face.” 

Case studies from Burger King and Wickes illustrate how hybrid apps and purpose-led campaigns can drive engagement, loyalty, and sales. The report also urges retailers to embrace AI-driven personalisation, gamified CRM, and connected packaging to meet evolving expectations. 

The Consumer Navigator report is designed to help brands decode these shifts and build strategies that resonate – particularly with Gen Z, the generation redefining retail.