{"id":536851,"date":"2026-01-28T14:16:49","date_gmt":"2026-01-28T14:16:49","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=536851"},"modified":"2026-01-28T14:16:49","modified_gmt":"2026-01-28T14:16:49","slug":"uk-construction-activity-december-2025-retail","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/cn-intelligence\/uk-construction-activity-december-2025-retail-28-01-2026\/","title":{"rendered":"UK construction activity December 2025: Retail"},"content":{"rendered":"<div id=\"everviz-CQjjbVVWr\" class=\"everviz-CQjjbVVWr\"><script src=\"https:\/\/app.everviz.com\/inject\/CQjjbVVWr\/?v=18\" defer=\"defer\"><\/script><\/div>\n<h3>Retail overview<\/h3>\n<ul>\n<li>31 per cent decrease in project starts year-on-year<\/li>\n<li>54 per cent decrease in main contract awards from 2024<\/li>\n<li>33 per cent decrease in detailed planning approvals compared to 2024<\/li>\n<\/ul>\n<p>The Retail sector experienced a weak performance in 2025, with declines across the board in project starts, main contract awards, and detailed planning approvals. Although projects starting on site saw mild but stable growth in the first half of the year, the trend reversed in the second half due to cost pressures resulting from increased National Insurance contributions and minimum wage, as well as high inflation and interest rates.<\/p>\n<p>Retail planning approvals performed strongly in the three months to December, rising 31 per cent. Project-starts declined 13 per cent, with main contract awards sliding 74 per cent back against the three months to December.<\/p>\n<h3>2026 outlook<\/h3>\n<ul>\n<li>0 per cent forecasted for project starts in 2026<\/li>\n<li>Surplus of vacant premises will cause the sector to remain stagnant<\/li>\n<li>\u00a3100m Phase 2 of Grantham Designer Outlet Village &#8211; Phase 2 set to start in 2026<\/li>\n<\/ul>\n<h3>Types of projects started<\/h3>\n<p>Performance in the retail sector was very weak, with only one category growing.<\/p>\n<p>Compared to 2024.<\/p>\n<ul>\n<li>Supermarkets accounted for the largest share (57 per cent), having increased 10 per cent year-on-year to total \u00a3797m<\/li>\n<li>Totalling \u00a3484m, shop projects starting on site decreased 54 per cent against 2024<\/li>\n<li>Totalling \u00a337m, petrol filling stations were 18 per cent lower year-on-year<\/li>\n<\/ul>\n<h3>Regional<\/h3>\n<ul>\n<li>Project starts and detailed planning approvals were down in most regions<\/li>\n<li>The East of England, the South East, and Wales saw growth in project starts<\/li>\n<li>Detailed planning approvals grew in Northern Ireland, the South West, Wales, and Yorkshire &amp; the Humber<\/li>\n<\/ul>\n<p>At \u00a3169m, the East of England led retail project starts, thanks to a 40 per cent growth compared to 2024. The South East also increased 7 per cent, totalling \u00a3162m. In contrast, starts in London fell 69 per cent on 2024 to total \u00a3165m. At \u00a3143m, the South West decreased 2 per cent against 2024.<\/p>\n<p>Totalling \u00a3197m, the South West had the highest share of detailed planning approvals, having climbed 1 per cent on 2024. Yorkshire &amp; the Humber also grew 4 per cent year-on-year to total \u00a3109m. At \u00a3158m, consents in the North West remained unchanged from 2024. In contrast, Scotland fell 37 per cent on 2024 to total \u00a3115m. Totalling \u00a3112m, the West Midlands also decreased 17 per cent against the 2024 figures.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retail overview 31 per cent decrease in project starts year-on-year 54 per cent decrease in main contract awards from 2024 33 per cent decrease in detailed planning approvals compared to 2024 The Retail sector experienced a weak performance in 2025, with declines across the board in project starts, main contract awards, and detailed planning approvals. &#8230;<\/p>\n","protected":false},"author":1,"featured_media":472166,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[74630,74655,74646],"tags":[],"class_list":["post-536851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cn-intelligence","category-retail","category-sector"],"yoast_head":"<!-- This site is optimized with the Yoast 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