The UK beauty retail landscape is undergoing a dramatic transformation, forcing brands and retailers to aggressively pivot from traditional practices while simultaneously investing heavily in physical experiences, according to yesterday’s CEW event panel discussion. Our panel of experts highlighted that the customer journey is increasingly fractured, demanding a delicate balance between the immediate, impulsive world of social commerce and the enduring need for personal, in-store connection.
The Rise of the ‘Creator First’ Economy
A major theme of the discussion was the seismic impact of platforms like TikTok Shop, which have significantly accelerated the initial stages of the consumer journey, specifically discovery and purchase. This speed is driven by impulse and algorithmic recommendations.
For brands, success on these channels requires a fundamental shift in philosophy: moving from being ‘brand first’ to ‘creator first’. This change requires significant internal adjustment, including establishing different operating models for social and marketplace selling, reconfiguring distribution streams, and incentivising teams for new practices, such as participating in live selling sessions that can last up to 12 hours.
Pete Dick of Grant Digital, noted that TikTok Shop is not a “dippy toe moment” and requires full commitment, as brands that fail to invest properly will not see the necessary return on investment (ROI). The urgency of this commitment is underscored by the prediction that TikTok Shop could account for nearly 20% of beauty sales within the next year.
The panel also collectively noted how social behaviour is directly driving category growth, particularly in fragrance. The hype surrounding body mists, celebrity fragrances, and ‘dupes’ has created high supply and demand through social channels. Niche fragrance is also growing as creators seek products that allow them to present a unique and aspirational lifestyle to their audience.
Physical Retail Pivots to Connection
Despite the hyper-speed of social commerce, the discussion confirmed a significant resurgence and investment in physical retail spaces. Panellists agreed that the function of the physical store has shifted entirely from being about convenience to being about connection.
Emily Montila, Makeup Category Manager at Space NK shared that the in-store environment must now offer experiences that online channels cannot replicate, such as the ability to trial, swatch, and feel products, alongside providing human intimacy and expert advice.
Leading retailers are adapting their spaces to cater to highly fragmented demographics simultaneously. For example, Space NK’s flagship stores incorporate ‘play spaces’ designed for Gen Z discovery alongside sit-down consultation areas and fragrance bars catering to the more mature consumer, enabling a variety of shopping flows. M&S, leveraging its trusted standing, is investing in store environments and beauty advice, aiming to make beauty the “most fun and surprising part” of a customer’s shopping trip.
Crucially, this retail evolution depends heavily on collaboration. Landlords are dedicated to creating spaces people “want to be in, not that they have to be in”. Ruth McFetridge, Leasing Director at Landsec noted that Landsec are focused on partnership, and as a result of that will be investing a billion pounds into retail over the next five years, emphasising that brand investment follows landlord belief in the location.
Navigating Trust and Fragmentation
In a market suffering from an “explosion of innovation” and resulting information overload, customer trust has become paramount. M&S, one of the UK’s most trusted brands, sees a clear opportunity to act as a curator, particularly in emerging areas like Korean skincare or the Teen Skin category, where consumers are often nervous about purchasing from unknown websites. Retailers win by saying: “this product works, this product’s great, this product’s safe”.
However, the sheer pace of innovation presents a major challenge for the entire industry. Because the barrier to entry for new brands is low, retailers struggle to “discern what are the flashes in the pan versus what are the real things that are there to stay”. For retailers with large physical footprints, selecting the right brands is essential, as these choices are “not small choices”.
Looking ahead, the greatest collective challenge is the fragmentation of the customer journey, which complicates ROI measurement across multiple channels. Consumers expect online immediacy but also offline depth and experience, creating a difficult balance.
Opportunities for future growth, however, lie in moving beyond product efficacy to focus on emotion—the full ecosystem of the journey and how it makes the consumer feel.
Sustainability was also highlighted as a growing priority, demanding better performance from brands regarding packaging and refills.
Ultimately, our panellists concluded that in this turbulent environment, the essential piece of advice for brands is to maintain consistency. Brands must resist the “awful level of FOMO and panic” created by trends and instead stay true to their core DNA, only leaning heavily into trends that are relevant to their existing customer base. Furthermore, continuous listening to social data to understand the consumer’s underlying problems—and then translating that understanding into both digital and physical retail strategies—is critical.
With thanks to our panellists and presenter for the 2025 event:
Chris Reid, Vice President / General Manager, Commercial Strategy and Retail Design & Development Centre, The Estée Lauder Companies UK & Ireland, Emily Montila, Makeup Category Manager, Space NK, James Mugford, Head of Beauty, Marks and Spencer, Pete Dick, Founder & CEO, Grant Digital, Ruth McFetridge, Leasing Director, Landsec, Helen Duxbury, Account Director, Circana and of course Catherine Bossom, CEW Board Member and Founder of Yellow Flamingo.
If you are interested in hosting or participating in future CEW events such as this one, please do get in touch with us, we would be happy to discuss.
