UK Market Insight Autumn 2025- Slow growth with sticky inflation sapping confidence

The optimism and confidence the UK experienced not so long ago have now completely evaporated.  Slow growth with sticky inflation is eroding real incomes which in turn is dampening consumer demand.  Wintersports appear (at this early stage) to be bucking the trend and whilst we can see tiny grass shoots of recovery in watersports and skate these grass shoots are from a very low base and very fragile.  Consumer confidence is low and declining, nobody is expecting any good news from our Chancellor in less than 2 weeks time. The UK has a hard road ahead.

So…momentous events in life — we’ve all had them.

The administration of Skate Hut. Perhaps not a surprise to everyone! In these tough business times, we all have to expect casualties. Skate Hut went into administration in August, leaving £3.7m of unsecured creditors.

Some may rejoice, anticipating that other retailers can pick up the business, but as is often the case, a phoenix has risen from the ashes,no doubt leaner and keener to maintain the business.

It’s interesting looking back at some of the larger retailer insolvencies. Does ‘redistribution’ really take place?  When Surfdome and Freestyle Xtreme bit the dust, many retailers were more than happy to see the back of them.  But where did that business go? Did you notice it?

At this point my phone rang, it was Joe Turnbull, O’Neill’s European Sales Director and we got into just that conversation. “I think very few retailers really felt the impact of that change in the market when the likes of Surfdome disappeared. It’s as if the business just evaporated.”

Perhaps it did?

Joe continued, talking about disappearing retailers: “It’s not just in the UK, but we have led the trend. Good action sports shops are no longer found in cities  or are very few at best.. Most of our business is now done with location stores. It’s quite a shift.”

And how are those retailers faring?  “With O’Neill, I think they’re doing OK. It’s no secret how bad the past few years have been, both miserable and massively turbulent. But I feel we’re coming to the end of it. Pre-orders back to 18/19 levels, shelves are generally clear and ready for intake.  I’m confident that SS26 is going to be a credible year, with buying patterns getting back to normal. I do appreciate that doesn’t apply to all brands, and there’s still a surplus of wetsuits, but recovery is on the way.”

A positive conversation.

Joe was calling to talk about Slide OTS in January where  they’ll be presenting O’Neill outerwear at the show. That’s another positive sign: O’Neill are coming back to Slide and putting effort into marketing the brand to wintersports retailers. That’s a really good sign.

They could hardly have chosen a better time to (re)enter the wintersports business. Although it’s way too early to tell (at the time of writing this), it l’s shaping up to be a positive season. Retailer confidence is as high as it’s been for years, and early call-ins and re-orders indicate a positive sales trend.

Angela from Finches Emporium told me: “We were anticipating our best winter. Everything looked so good. Our boot wall was amazing – 400 boots on display. We had our winter team ready to go and everything was just looking so positive.”

Then a momentous event.  A disaster.  On Thursday 16th October, a fire ripped through Finches Emporium in South East London. This family-owned business, now into its third generation, was razed to the ground.

Originally founded as an antique and glassware business by Bill Finch in 1947, his son Frank gently nudged the business towards sport, eventually transforming it into what it is today a wintersports, outdoor, and bike store. Frank has now retired with his son Brad now running the business with mum, Angela … and no doubt Frank when needed!

That fire not only ripped through the business but it also destroyed a family home that had seen the Finches through many decades. Indeed, Frank was born above the shop. You could say he was born into the business literally.

Talking to Angela, you can hear the anguish in her voice. They’ve lost their business, their home, and so much more. Two weeks after the fire, there’s still no clarity on the way forward. The building will need to be demolished and rebuilt. Insurance should cover it all, but as with all these things, you never quite know what you’re insured for until there’s a claim. Loss adjusters have been appointed, and discussions and negotiations will no doubt go on… and on.

“I’d like to think we can be up and running next year, if not from the original shop, then from a unit somewhere. We’re determined to rebuild and keep Finches where it belongs, back here on Perry Vale.”  This is Angela again.

“We’re just grateful that nobody was injured. We’re also lucky to be surrounded by such amazing communities. The local Forest Hill and Perry Vale communities have been so supportive, it’s so heartwarming. And the separate communities of bike and wintersports have also rallied round to offer help and support where they can. It takes something like this to make you truly appreciate what a community is and what lovely people we have in our lives. We’re really lucky.”

How can you help? There’s a GoFundMe page (support-finches-after-their-fire) which has already raised over £30,000, and I’d encourage everyone to offer industry support, whatever you can do. There will be an Après Ski Party at the Foresters Arms on 22nd November, too late by the time you read this, but not too late to help in some way.

Ending on a happier note, I finally managed to get hold of John from NASKIS in Cardiff, now entering their third winter in the snowsports business.

New entries into our industry are few and far between, and some might say it’s a very brave person who enters snowsports retail, but John has no regrets at all.
“After 13 seasons on the snow, I came back to the UK and was told it was time to get a ‘proper job’. I used my degree and went into teaching, but two years later I knew that wasn’t for me”.

Spotting what they felt was a gap in the Cardiff market, John and partner Kate took the leap of faith, deciding it was time to open a real wintersports shop offering proper boot fitting and solid guidance.

“We’ve not looked back. It’s far exceeded our expectations. We’re really pleased with how it’s going and, while it can be stressful, at least we’re in control of our own destiny and it’s a nice kind of stress.”

John and Kate are fully invested in the business and are solidly investing in their future – literally with Max, their 17 month-old son joining the team!  Building a family business. Well done to NASKIS and best of luck to Finches – both family businesses – long may they prosper.

Gordon Way