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From Blind Spot to Retail Advantage: How GNFR is reshaping profitability in UK fashion retail

The UK fashion retail sector faces a challenging environment. Leaders are desperately looking for ways to cut costs. Sales growth remains subdued, volumes are still below pre pandemic levels, and persistent cost inflation continues to erode margins, with average operating margins of 4.7% in UK clothing and footwear retail. But it’s not all bad news. Our report, published in January 2026 explains how GNFR can reshape profitability with significant impact on growth and efficiency for the sector.

WE UNCOVERED SOME STARTLING TRUTHS...

  • 81
    %

    GNFR considered a blind spot for 81% of small retailers (£0 - £250M revenue).

  • 2.3
    %

    Modest forecast growth for clothing & footwear in 2026.

  • £
    3.9
    BN

    Estimated GNFR spend by clothing & footwear retailers in 2025.

  • 4.7
    %

    Average operating margin for UK clothing & footwear.

A WORD FROM IAN, OUR CEO

What separates good retail from great retail isn’t always what you sell. It’s how you keep the lights on while your customers shop and your teams serve. In every partnership we undertake, the moment visibility improves and the noise of complexity falls away is the moment our clients begin to see tangible gains. This report gives the sector that same moment of clarity: when you understand the detail, you unlock the opportunity beneath it.

    Use our hidden value index to benchmark your GFNR maturity against your peers

    Take clear direction on opportunities and barriers for saving

    Learn how to unlock that hidden value with strategies for success

SOUNDS GOOD DOESN’T IT?

Our report, produced in partnership with Retail Economics combines interviews with 100 senior procurement, finance and operations leaders with detailed analysis of the UK’s largest clothing and footwear retailers. The findings show that GNFR maturity varies sharply by business model and scale, and that this gap is now a clear commercial differentiator.

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