Shoppers are set to spend almost £90 billion in the top ten UK cities by 2029, up £8.2 billion from 2024, as both locals and international tourists gravitate to these retail hubs, according to research from GlobalData.
As a result, retailers are expected to concentrate investment and activity in Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, and Sheffield, to the detriment of smaller cities and towns.
Globaldata says secondary high street locations will struggle to compete, evolving into community hubs rather than retail destinations.
“For many retailers, the top ten 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.”
Zoe Mills, Lead Retail Analyst, GlobalData.
In its “Retail Locations Series: UK Top 10 Cities, 2024-2029” report, Globaldata predicts that almost a quarter of the UK’s physical retail sales will come from the top 10 cities by 2029 – a rise following the stagnation seen between 2019 and 2024 as a result of the COVID-19 pandemic.
Growth in offline spending within the health and beauty sector is expected to play a major role in this shift, as beauty specialists expand their store networks in these prime urban locations.
“Sephora is a notable example of a health and beauty retailer that has its sights set on the top ten cities in the UK. As of October 2025, the beauty specialist operates ten locations across the UK, with seven situated in key cities. This emphasis is crucial for international retailers. By prioritising tourist hotspots, travellers who are already familiar with the brand can easily visit while on holiday,” added Mills.
Retail Rewired 
Leave a comment