The Retail and Leisure sector enters 2026 at a crossroads. After a year of transition in 2025, marked by economic uncertainty and rising costs, the focus now shifts from survival to sustainable growth. The trends shaping the year ahead are clear – and the pace of change is accelerating.

David Scott, our Head of Consumer Industries, says: “We’re seeing a fundamental shift in consumer expectations. Personalisation, sustainability, and immersive experiences are no longer optional – they’re essential for growth in 2026.

“Retail and Leisure operators who put sustainability and digital innovation at the core of their strategy will be best placed to thrive in the new landscape.”

AI is moving beyond the back office, powering everything from dynamic pricing and inventory management to hyper-personalised customer journeys.

Predictive analytics, AR/VR shopping, and conversational commerce are becoming the norm, enabling businesses to anticipate and exceed customer expectations.

Consumers are seeking more than products – they want experiences. Gamified loyalty schemes, immersive leisure offerings, and seamless physical-digital journeys are redefining engagement.

The most successful brands are more likely to be those that create memorable, value-driven experiences for cautious but curious consumers.

Sustainability is now a baseline expectation. Circular economy models, transparent ESG reporting, and carbon reduction initiatives are moving from “nice-to-have” to “must-have.”

Businesses that invest in sustainable supply chains and clear ESG communication are more likely to win both loyalty and market share.

Labour shortages and cost pressures are driving rapid adoption of automation. Smart inventory systems, automated scheduling, and robotics in hospitality are helping businesses do more with less - freeing up staff to focus on high-value, customer-facing roles.

• Margin pressure: Persistent cost inflation and cautious consumer spending will squeeze profitability.
• Talent and skills gap: Balancing automation with workforce engagement and upskilling for digital and sustainability roles.
• Capital constraints: Smaller operators may struggle to fund tech and sustainability upgrades without tailored finance solutions.

• Progressed: Broader adoption of AI and automation for efficiency and customer experience.
• Developed: Stronger collaboration between retailers and tech providers for omnichannel strategies.
• Stopped: Short-term cost-cutting that undermines long-term resilience.
• Started: Investment in sustainable supply chains and transparent ESG reporting.

Key milestones in 2026 include the February release of our Retail & Leisure Outlook Report, April’s business rates reform, and the May implementation of Edinburgh’s Tourist Tax. These events will shape strategy and investment across the sector.

To get Future Fit, businesses must prioritise AI and automation, invest in digital and sustainability skills, and build loyalty through immersive experiences and transparent ESG messaging.

The winners in 2026 could be those who combine operational discipline with bold innovation - delivering efficiency, experience, and sustainability at scale.

2025 was a year of transition, not transformation. Those who invested in digital, sustainability, and omnichannel strategies are now best placed to thrive.

The winners in 2026 are more likely to be those who combine operational excellence with bold innovation - delivering efficiency, experience, and sustainability at scale.

Dive into the full set of 2026 sector insights and discover our practical guidance to get your business Future Fit for 2026: Sector Trends