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The cyber threats landscape is rapidly evolving. Learn more about the current cyber threats impacting businesses and the steps you can take to protect your organisation.
Although 2024 was a challenging year for retailers, we saw strong growth across the beauty and wellness sector and unwavering resilience across our fashion client base. The early warm weather in 2025 has resulted in positive trends reported across our client base and consumer spend data.
Co-head of Fashion and Beauty, Retail and Wholesale, Barclays Corporate Banking
Based on our long-standing relationships with our clients, we’re confident retailers across the fashion and beauty sector will continue to demonstrate their ability to make the most of new opportunities this year, continually adapting to the evolving consumer behaviours.
Co-head of Fashion and Beauty, Retail and Wholesale, Barclays Corporate Banking
Our consumer spend research1 reveals a strong performance from pharmacy, health & beauty products with sales up by 12.2% year-on-year (YoY) in Q1 2025. This means it’s outpacing overall consumer spending growth of 0.5%, while fashion sales were also up 0.7% over the same period.
The challenge – or opportunity – for retailers is to find ways to appeal to consumers who love to shop in-store and also to those who prefer to shop online. The key is having your product available to customers where, when and how they want it.
Head of Retail and Wholesale, Barclays Corporate Banking
Businesses are exploring the potential of artificial intelligence (AI)
Faced with the challenge of rising employment costs and the importance of customer experience, retailers are expected to increasingly invest in technologies like AI. Based on conversations with clients, it’s clear many are already working with AI. However, there is nervousness about being the ‘first mover’ in some AI applications until they are more proven. We’ve already seen some important uses for AI, including:
Rising employment costs are accelerating investment in technology – but to get it right, businesses should ensure they understand its real potential and can bring in people with the necessary expertise.
Co-head of Fashion and Beauty, Retail and Wholesale, Barclays Corporate Banking
Given the recent retail industry cyber-attacks, it’s unsurprising that 70% of retail sector leaders ranked cyber threats among their top three concerns in our 2024 Retail resilience report. The sophistication of cyber-attacks has risen sharply in recent years, with the risk of catastrophic data breaches and IT system failures as a result of ransomware and email phishing scams.
When holding a fireside chat at our one of our fashion and beauty industry dinners, Justin Hampshire, CEO at TFG London highlighted: “TFG London is all too aware of this threat; we know of several retail brands that have been severely affected by cyber-attacks. We are taking this very seriously and already block external emails to our stores and have a dedicated 24-hour monitoring centre that checks for breaches.”
The cyber threats landscape is rapidly evolving. Learn more about the current cyber threats impacting businesses and the steps you can take to protect your organisation.
Based on conversations we’ve had with our clients, there appears to be a healthy appetite for mergers and acquisitions (M&A) activity in the fashion and beauty sector this year, with several businesses looking to strengthen and widen their offering. Recent high-profile deals have included Prada’s purchase of Versace4.
Many of those pursuing an M&A strategy appear to be targeting vertical integration and product, geographic and demographic diversification. Others want to bolster specific parts of their business, such as their AI capabilities or social media presence.
Supporting TFG London's acquisition strategy
TFG London is home to some of the UK's most iconic premium fashion and lifestyle brands, including Hobbs, Phase Eight, Whistles, White Stuff and Inside Story with each brand offering a distinct customer experience and style. Barclays has held a relationship with TFG London since it was established in 2015, and was Hobbs’ founding banking partner in July 1981.
The importance of obtaining support from key stakeholders was the big takeaway for Justin Hampshire, CEO, TFG London, stating: “Working closely with advisors and partners, including Barclays, who were already aware of our growth and acquisition strategy, was essential. It enabled a smooth, fast paced transaction - we’re delighted all round.”
The upsized £90m syndicated revolving credit facility put in place last year for TFG London, part of leading South African retail business, The Foschini Group Limited, is just one example of our commitment to supporting fashion and beauty retailers with their growth ambitions.
We talked to the Barclays team about funding for the TFG acquisition strategy and what was in store for the Group. The team was fantastic throughout, remaining supportive and proactive, and we completed the re-finance last year, with increased facilities to support our growth strategy. This loyal and dependable banking partnership has been vital to TFG, and we could not be more delighted with the support of Barclays since establishment. We look forward to reinforcing the solid foundation we have built as we look to the future.
CEO of TFG London
If you’re looking to unlock growth opportunities to move your business forward, our £22bn Business Prosperity Fund is available through some of our borrowing and refinancing options. See how we could work together to achieve your ambitions and strengthen the UK economy. Subject to normal lending assessment, status and application. Terms and conditions apply.
Our dedicated and experienced fashion and beauty industry specialists can help you navigate the opportunities and challenges facing the sector as you strive to realise your business ambitions.
We can provide a full range of transactional banking support and corporate financing solutions, including industry-specific credit support, cash management, payment and foreign exchange services and debt capital markets financing.
We provide a complete spectrum of solutions to enable your business to transact and trade easily, manage risks efficiently and finance its plans for growth.
To discuss your business requirements and how Barclays can support you, contact us today.
1Barclays UK Consumer Spend Report gives you a unique and up to date picture of the nation’s spending habits based on the actual transactions, bringing it to life so you can take action and shape your strategy. You can find the latest report here: https://www.barclayscorporate.com/insights/industry-expertise/uk-consumer-spending-report/
3https://www.deloitte.com/uk/en/issues/generative-ai/state-of-generative-ai-in-enterprise.html^
4https://www.voguebusiness.com/story/fashion/prada-to-buy-versace-from-capri^
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