Press Release
Retail M&A activity started to rebuild in 2024, finds new research
13 Mar 2025
New research from leading business and financial adviser Grant Thornton UK LLP finds that deal activity in the UK retail sector saw the first green shoots of recovery in 2024, following reduced activity over the previous two years due to the cost-of-living crisis.
The firm’s Retail M&A review finds that 60 deals were recorded in 2024 – almost double the number seen in 2023 (38) and a significant increase compared to 2022 (46).
While the volume of deals increased last year, the total disclosed deal value of retail M&A activity remained relatively steady at £3.5billion. This is in line with 2023 and a significant increase compared to 2022 (£1.9billion).
Key deals in the UK retail sector in the second half of 2024 included:
- Wacoal’s purchase of Bravissimo: Japanese lingerie manufacturer Wacoal acquired leading UK based retailer of larger cup size women’s lingerie and swimwear specialist, Bravissimo, in September 2024. Wacoal was a key supplier to Bravissimo who were looking for new opportunities for growth in key markets and to optimise its supply chain.
- The Foschini Group’s acquisition of White Stuff: South African retail group Foschini (TFG) bought White Stuff in October 2024, marking an exit for White Stuff’s founders, who started the business in 1985. TFG’s stable of UK high-street fashion brands includes Hobbs, Phase Eight, and Whistles.
The online floristry industry continues to appeal to investors and there were two deals involving these assets in November 2024. These deals follow Freddie’s Flowers and Bloom & Wild, both of whom received private equity investment in 2021:
- Euroflorist’s English subsidiary, Flowers Online, bought Malta-based online retailer Serenata Flowers, which sells to a UK customer base
- Online florist Prestige Flowers merged with Flowerline, a flower procurement, packing, and distribution business, in a deal supported by ThinCats, an alternative finance provider to mid-sized SMEs.
The research also finds that UK retailers are increasingly looking overseas for expansion opportunities as 17 UK retailers purchased international entities in 2024. Frasers continued its global expansion strategy, buying companies in Norway, South Africa, Australia, and the Netherlands. Dunelm and WH Smith Group both bought Irish assets. Meanwhile, Wourth Group (owner of Hotter Shoes and WoolOvers) bought an undisclosed stake in German fashion mail order company Peter Hahn, which targets women over 45 years old.
While 2024 saw a boost in deal numbers in the retail sector, there were also 10 transactions involving restructuring processes across 2024, compared to nine in 2023. The second half of the year saw high-profile rescue deals from companies suffering from depressed trading activity and operating model challenges. These included: The Range and Wilko owner, CDS Superstores, acquiring the Homebase brand name, intellectual property, and up to 70 UK stores, saving around 1,600 jobs; and Auréa Group rescuing the Body Shop from administration, saving 1,300 jobs.
Nicola Sartori, Head of Retail M&A, Grant Thornton UK LLP, said:
“The increase in retail transactions last year is a sign of investors starting to dip their toe in the water as consumer confidence slowly returns. While retail assets are at the mercy of inflation and interest rates, these started to move in the right direction in 2024 and are expected to continue to do so.
“While data shows that personal financial situations are slowly improving, the new year brings challenges for retail assets. Input costs are still higher than they were four years ago, and the sector is heavily exposed to April’s upcoming increases to employer National Insurance Contributions and the National Minimum Wage. Many retailers are looking to combat rising staff and operational costs through further digital transformation and the use of AI.
“As many companies continue to be faced with financial and operational challenges, restructuring plans are becoming an increasingly popular tool to give companies and creditors a formal arrangement to navigate through financial difficulty. We expect to see an increase in their use throughout this year.
“Ultimately, retail M&A is inextricably tied to economic fluctuations. We expect falling interest rates to be the biggest driver in bringing investors to the table this year. Low rates are good news for consumer finances and also mean cheaper debt to oil the M&A machine. As 2025 progresses, we expect investor confidence to slowly rebuild further, with smaller deals driving up volumes.”
