The retail sector has entered the crucial peak trading period under mounting financial pressure. Paul Archer, CEO of Duel, explores how retailers can rebuild consumer confidence and drive sales at a time when every discretionary purchase is under scrutiny.

In Q3, listed retailers issued nine profit warnings, the highest level since Q4 2023, with over half (56%) naming falling consumer sentiment as the key factor. Against a backdrop of ongoing financial hardship, customers are becoming aggressively selective with their spending. PwC reported that the majority (85%) of consumers say they are concerned about the rising cost of living in its Autumn 2025 Consumer Sentiment Survey.

As consumers manage tight budgets, the list of non-negotiable items gets shorter and shorter, with less surplus cash set aside for luxury purchases. Ultimately, consumers have only become more selective because they’ve been forced to. Groups have been left paralysed by their uncertainty around the cost-of-living, opting for frugality over indulgence.

But this behaviour isn’t set in stone. Reports revealed that retail sales hit their highest rate in September this year since 2022, showing that consumer intent to spend hasn’t entirely diminished.

The golden quarter is a huge revenue driver for brands; last year, retailers closed a quarter worth £142.7 billion, and £60 billion of that was secured in December alone. To make the most of this period, brands need to engineer Advocacy, transforming loyal fans into measurable drivers of trust, loyalty, and long-term growth.

Looking at those doing it well

The beauty sector, sitting at the sweet spot between affordable indulgence and high engagement, has a strong track record of building genuine customer advocacy. Unlike categories such as fashion, beauty products are replenished regularly yet still feel like a treat. That’s why retailers like Space NK and Sephora thrive – they’ve turned the beauty-buying experience into something people look forward to.

The sector’s healthy margins enable continual reinvestment in training, technology, and experience design, keeping it dynamic and customer-centric. Beauty brands are also among the most advanced in leveraging advocacy and social commerce to build trust.

Luxury brand Charlotte Tilbury has built its success not on discounts or endless campaigns, but on the strength of its community. Recognising the need to diversify customer acquisition, the brand sought new ways to reach target audiences.

It launched the Magic Beauty Stars programme, an initiative that incentivises Charlotte Tilbury’s most passionate fans to cut through the noise, amplify awareness, and create content that drives direct sales through their own social networks. The result: a 10x ROI and a 135% increase in programme revenue in its first year.

Beauty retail also remains one of the few categories consistently drawing people back to the high street. Stores like Space NK have evolved into multi-brand discovery spaces where shoppers can test, compare, and play across products. That tactile, sensorial experience – the chance to feel textures, try shades, and seek advice – keeps beauty stores busy even as other categories struggle. These retailers curate experiences that make shopping social again, helping sustain neighbouring businesses and inject vitality into retail destinations.

The lesson for retailers this quarter

One of the biggest takeaways from the beauty sector is that brands must differentiate through experience. When products look similar online, what sets brands apart is how they make people feel, both in person and through its communities. Beauty retailers have mastered this balance of service, storytelling and advocacy. They empower satisfied customers to become vocal brand champions, extending the in-store and online experience into social channels. This fusion of experience and advocacy is a model every retailer can learn from – and one worth adopting this quarter and beyond.

By setting this standard, retailers across the board can build long-term relationships that outlast the short-term transactions, ensuring growth is built to last far beyond the sales peaks of the Golden Quarter. Laying the groundwork now during one of the most critical periods for retailers sets brands up for a 2026 founded on connected and community-driven advocacy.

This approach to advocacy, powered by data and community insight, will push brands to the forefront of retail innovation, and nurture a loyal customer base of brand fans who stand the test of time, even during economic uncertainty. When attitudes towards discretionary purchases go through an inevitable positive shift – and individuals start spending again – retailers want to be the first brands that come to mind.