The UK fashion sector has to a certain extent begun bouncing ack after a challenging 2023 and this should continue in 2025, according to new figures from data specialist CACI.

That’s an interesting viewpoint given how multiple reports have shown wobbly consumer confidence and faltering sales figures across the sector with a recent British Retail Consortium warning that 2025 could get worse.

But CACI has crunched 2024’s numbers based on consumer, demographic and brand data and made some bold assessments that may surprise some when looking at 2024. It has also said what it thinks will happen in 2025.

It has called out some strong-performing brands in several key categories that have seen growth throughout the past year. In fashion they include Hollister, Uniqlo, M&S, and Mango, which it said is “almost like a new mid-market brand that’s not H&M, Zara etc”, underlining the bounce-back the Spanish brand has seen of late.

It added that “non-traditional mass-market brands” such as Mango, Uniqlo and Hollister “are filling a void of weakening performance” from other labels. “Reconnecting with their consumers, these brands, alongside M&S, are seeing bounce-backs from previous negative connotations around the brands.

“Having popular social media campaigns, selling celebrity collaboration ranges and being known for high-quality clothes is appealing to consumers,” it added. “This notably creates a strong identity for a brand. This isn’t exclusive to offline brands however, ASOS is also a brand bouncing back after having poor performance in 2023”.

In sportswear, it highlighted Adidas, New Balance, Gymshark, Under Armour, and Lululemon with “athleisure continuing to perform strongly as consumers continue to prioritise health and wellness”.

That’s reflected in the spend increases for the aforementioned brands.

And while Adidas and New Balance in particular have benefitted from selling on-trend trainers that have gone viral (such as Adidas Sambas), they also sell high-quality sportswear and athleisure, “tying into consumers preferences for wearing athleisure and the uptake in sports like running and pilates”.

And in beauty, CACI has seen strength from Sephora, Charlotte Tilbury, SpaceNK, and Kiko Milano in particular.

Stores such as Sephora and Space NK, “which act as ‘beauty department stores,’ selling several brands under one roof”, have continued to perform strongly throughout 2024. 

In fact, CACI said Sephora has been the big story of the year as each new store opening has led to huge queues outside: “With clearly branded bags, consumers use these to post on social media, further expanding excitement across their social networks. Many assets are seeing ‘a Sephora effect’, whereby the introduction of this brand has led to upticks across the other beauty brands, highlighting how ‘beauty trips’ are growing in momentum. This is reflected by brands such as Charlotte Tilbury and Kiko also performing well.”

As for 2025, CACI anticipate brands that are going “above-and beyond to grow their social media presence and connect with customers will continue into 2025”.

Hannah Smith, consumer intelligence lead at the business, said of all this: “2024 was built on a resurgence in the retail market, with beauty, fashion, and sportswear spearheading consumer spend.

“We can’t talk about beauty sector success in 2024 without mentioning the brand of the moment, Sephora. Elsewhere, consumers continue to prioritise health and wellness, reflected in spend increases for the likes of Lululemon and Under Armour. These two sectors are ones we expect to be real winners in 2025.

“Back to 2024, and while athleisure has certainly grown, it hasn’t completely taken over wardrobes, as fashion bounced back following a challenging 2023. The likes of Mango, Uniqlo, and M&S have reconnected with their consumers, matching better social media engagement with a clear investment strategy in creating the best possible physical retail environments. 

“Others will be looking to this two-pronged approach in 2025 – asking themselves how they can build engagement in both the online and offline spaces. As the relationship between brands and their consumers becomes more tribal, the methods used to attract and retain loyalty will no doubt become more of a focus.”