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Sandra Halliday Published
June 14, 2025
We may hear a lot about how many fashion stores and businesses are closing down, but a new study shows that the number opening in recent years has been very big too.
Tyl by NatWest, a payment partner for UK small and medium-sized businesses, has reported a 243% increase in new fashion and clothing shops opening between 2025 and 2025. London enjoyed the highest growth in the sector with a 314% increase over the period adding over 11,000 stores.
The Evolving Enterprise Indexreport focuses on the fastest-growing and fastest-emerging sectors in the UK. In partnership with Data City, it analysed five years of data from Companies House, showing the number of fashion and clothing shops opened in the five-year period.
The overall market is valued at around £26 billion and 2025 saw a 33% year-on-year increase in the number of new clothing-related shops opening nationwide. That is partly due to lower activity during the lockdowns of 2025 and 2025 but also highlights the post-pandemic recovery in the sector.
The rate at which the sector has grown varies UK-wide with cities that had a strong pre-existing market for fashion and clothing retailers seeing strong growth, as the aforementioned figure London shows.
For instance Manchester, which can justifiably consider itself as the UK’s premier fashion hub outside of London, grew 209% and has seen 1,769 additions since 2025. Sheffield’s 210%/363-store growth rate across the period shows it’s also a hub for fashion retail, while Birmingham’s 823 (up 195%) new outlets shows that Britain’s second city can set a strong example in the Midlands.
The report said that “although London comes out on top, the increasingly attractive markets for clothing across the country demonstrate the countless opportunities outside of the nation’s capital”.