According to EY’s latest Retail Performance Index, the Baby, Kids and Toys sector has climbed two places to become the highest-rated retail category among UK consumers. Based on feedback from over 10,000 shoppers across more than 200 retailers, emotionally driven spending categories are outperforming essentials, with Grocery dropping three places to rank last.
The Bottom Line
- Top Performer: Baby, Kids and Toys claimed the #1 spot in the 2026 EY Retail Performance Index with a median score of 64.4, improving 1.8 points since 2023.
- The Grocery Divergence: Grocery fell to 11th place with a median score of 57.8, making it the only category to record a decline in consumer perception since 2023.
- Middle-Market Squeeze: Both top-performing and lower-performing retailers have improved their customer perception scores since 2023, while median performers have seen far less progress as baseline digital expectations become industry standard.
Tracking the 2026 UK Retail Performance Index Shifts
The EY study maps consumer sentiment across 11 distinct verticals, utilizing median perception scores to chart structural market changes.
| Rank (2026) | Retail Category | Median Score (2026) | Rank Change from 2023 | Median Change from 2023 |
|---|---|---|---|---|
| 1 | Baby, Kids & Toys | 64.4 | +2 | +1.8 |
| 2 | Health, Beauty & Wellness | 64.2 | – | +1.2 |
| 3 | Accessories | 62.9 | -2 | -2.1 |
| 4 | Sports & Outdoors | 62.5 | – | +2.0 |
| 5 | Electronics | 61.0 | – | +0.8 |
| 6 | Footwear | 60.9 | – | +0.7 |
| 7 | Home & Garden | 59.9 | – | +1.3 |
| 8 | Convenience Food Service | 58.7 | +1 | +0.5 |
| 9 | Clothing | 58.5 | +2 | +1.1 |
| 10 | Books, Crafts & Stationers | 57.9 | – | +0.3 |
| 11 | Grocery | 57.8 | -3 | -0.4 |
Why Emotional Resilience Trumps Macro Pressures
As households navigate economic pressures, consumer spending behavior has shifted. According to the EY index, categories tethered to lifestyle, personal health, and children command higher loyalty than household staples.
Silvia Rindone, EY-Parthenon UK&I retail lead, noted: Our latest findings suggest that emotionally driven spending categories are proving the most resilient as households continue to manage economic pressures.
While household budgets remain under pressure, parents continue to prioritise spending on children. The Health, Beauty and Wellness sector mirrors this trend, securing the second position with a median score of 64.2. Meanwhile, Sports and Outdoors advanced with a 2.0-point median increase, benefiting from long-term shifts in consumer behaviour towards physical health, mental wellbeing and active lifestyles.
The High-Frequency Friction Pulling Grocery Down
Contrast this emotional insulation with the operational reality of the supermarket sector. Grocery dropped three spots to finish last at rank 11, registering a median score decline of 0.4 since 2023.
The core issue is transactional frequency. Because consumers interact with grocers more frequently than almost any other retail category, price increases, stock availability issues, and service failures are far more visible.
Silvia Rindone explained this dynamic: Grocery retailers are facing a unique challenge because customers interact with them more frequently than almost any other retail category. That means every price increase, stock availability issue or service failure is far more visible.
This visibility creates a category where leaders are pulling away from the pack, creating a clearer distinction between those delivering consistently strong experiences and those struggling to keep pace.
The Widening Chasm in the Middle Market
The data points to a broader structural risk across UK commerce: retailers are increasingly being squeezed in the middle. While top-performing and lower-performing retailers elevated their consumer perception scores since 2023, median performers stalled.
Capabilities that once differentiated retailers—such as seamless digital experiences and integrated online and in-store journeys—are now considered the norm by consumers. As Silvia Rindone pointed out, What was previously viewed as innovative just a few years ago is increasingly now regarded as standard practice.
Retailers cannot rely on simply keeping pace with competitors. The businesses creating sustainable advantage are the ones identifying what matters most to customers.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
