‘Consumer-facing sectors’ see uptick in construction activity

Supermarket planning approvals and demand for student housing, and cinema and theatre venues have led to increased construction activity across these “consumer-facing sectors”.

Discount retailers such as Aldi and Lidl continue to be the largest investors in retail space and have expanded and updated their existing outlets accordingly.

In 2025, Aldi committed £1.6 billion to build more stores over the course of two years, and Lidl recently announced it would be investing £600 million in opening 50 new stores nationwide, with supermarkets in Abbots Langley, Watford, Warrington, Cheshire, and Thornbury, Gloucestershire.

Ryan McDonnell, CEO at Lidl GB, said: “As we grow, we want to positively impact our British communities.

 “We’re not just opening doors, we’re unlocking regional growth. Our expansion translates directly into high-quality jobs and gives British suppliers the certainty they need to invest in the future.”

According to market research experts at Glenigan, supermarket project starts rose by 28 per cent, to £196 million in the December-February quarter and large grocery chains were key drivers in the 14 per cent uptick in planning approvals across the sector. 

Meanwhile, purpose-built student accommodation (PBSA) and cinema and theatre construction also saw an investment surge for the same period.

The value of PBSA construction rose by 27 per cent, to £772 million, coupled with the 50,250 bed spaces under construction this year, and almost two thirds of all activity focused in London, Bristol, Coventry and Manchester, according to Glenigan data.

Last year, £4.3 billion was invested in the PBSA market, up 10 per cent YoY, and more funding is likely to go into student accommodation schemes to cater to the top 24 Russell Group universities, according to Knights Frank.

Additionally, cinema and theatre project starts rose to £457 million, a near sixfold increase on a year earlier and more than any other area within the hotel and leisure sector, data from Glenigan showed. 

A £16.5 million refurbishment of De La Warr Pavilion, Bexhill-on-Sea is set to take place this June with renovations to its auditorium, foyer spaces and plans to improve accessibility, which is expected to be completed in the summer of 2028.

Allan Wilén, economics director at Glenigan, said: “We’re seeing a pickup in construction activity across key UK consumer‑facing sectors. 

“PBSA remains supported by strong investor demand, supermarkets are progressing new and replacement stores, and renewed investment in cinemas and theatres reflects improving confidence in leisure‑led schemes in anticipation of rising consumer spending.”

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