The UK High-Street M&A Market

Retailers are revealing greater optimism as the golden quarter approaches. With an improving economic outlook and rising consumer confidence, retailers await a stronger end to the calendar year. Crucially, this heralds a more positive tone in the UK market for many business owners considering M&A transactions, who had previously paused decisions, whilst awaiting better market sentiment.

Key themes across the retail landscape include:

• Omnichannel – physical retail resurgence: As online-only retail declines, driven by lower in-store return rates, reduced costs of returns, and the halo-effect of storefront locations.
  
• Customer acquisition: How customers research and shop for brands and products has evolved, accelerated by the introduction and success of social media in-app shopping functions.
  
• Conflicting consumer trends: Retailers face a dilemma as customers demand ethical and eco-friendly apparel, whilst concurrently ultra-fast fashion and value brands thrive in the UK market.
  
• Unlocking AI benefits: AI enhances data-driven performance through better inventory management, personalised ecommerce experiences, dynamic outreach, and more precise demand forecasting.
  
• Policy and regulation: New laws are being introduced to protect shop workers from rising shoplifting, while business rates and supply chain transparency are under scrutiny for potential reforms.
  
• Joint venture, partnerships and collaboration: Brands and retailers are increasingly using this to expand into new regions and demographics by leveraging local expertise and combined brand power.

To learn more about the key M&A trends taking shape this year in the UK High-Street Market, read our latest paper.

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Originally published 02 September 2024

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