Industry News

The EU’s ban on destroying unsold clothing, clothing accessories and footwear is now in effect. Under the EU Ecodesign for Sustainable Products Regulation (ESPR), companies must publicly disclose what they discard. Manufacturers, importers, distributors and retailers operating in the EU should comply with significant sustainability requirements. Click here for more information on the ESPR.

The UK government has previously outlined its intention to strengthen current tipping legislation from 1 October 2026. The changes would require hospitality businesses to consult with staff on its tipping policy. A draft code of practice outlining the details of that consultation was unexpectedly withdrawn in mid-July. Trade body UKHospitality is calling for urgent clarity on the status of the draft code of practice and its implementation. For now, businesses should assume that tipping obligations remain unchanged, and should monitor announcements closely over the coming weeks, as implementation on 1 October would likely require further government action and clarification.

Too often, pressures facing retail businesses daily include theft, violence towards staff and aggressive behaviour. A growing area of strategic and practical response is the use of facial recognition technology. The Information Commissioner’s Office has published advice, aimed specifically at retailers, with small businesses in mind, about how to share information lawfully to help tackle crime.

The other side of the same coin is the fact that landlords may, in some cases, bear liability for tenants’ actions and criminal activity on retail and leisure premises. In this article we explain the issues and offer practical advice.

The sector will be aware of Asda’s consolidation of its online clothing distribution into a single warehouse equipped with advanced robotic automation. From 2027, Ocado’s highly automatic robotic warehouse software is also expected to support significant parts of Asda’s online grocery operation. The moves are expected to drive efficiencies and improvements across order fulfilment, stock management and delivery planning. Expectations around jobs are mixed, with commentators anticipating warehousing job losses, but gains in employment in technology, maintenance and operation of automated systems.

Prosecutors are pushing for five Palestine Action activists who vandalised a Barclays branch in Burnley to be sentenced under contentious terrorism laws. It’s one of the latest examples of the growing trend towards trespass and protests across a variety of retail and manufacturing premises. As the UK government and landowners/occupiers alike attempt increasingly innovative responses to try to crack down on trespassers, our recent article, Managing trespass, fly-tipping and nuisance risk – Walker Morris, offers strategic, proactive and practical advice.

In related news, Morrisons has recently been involved in obtaining an injunction against protestors at one of its commercial distribution centres. In WM Morrisons Supermarkets Ltd v Persons Unknown [2026], the King’s Bench Division ruled on the continuation of an injunction against persons unknown for a further 12 months following a review of an order made on 12 May 2025 preventing unlawful protests at their distribution centres. The court found, among other things, that despite the disbandment of ‘Farmers to Action Group’ in November 2025, a decentralised group with the same motivations remained; that disruptive protests continued at other supermarket chains’ sites, that the campaign focus had shifted to ‘IHT Phase 2’ following implementation of inheritance tax changes in April 2025 and that there remained real and imminent risk of harm. The court continued the injunction, which had been highly effective in protecting the claimants’ sites without stifling legitimate protest. For further information and advice on dealing with protestors and injunctions, see our recent article.

A key theme in UK retail during July 2026 was continued competitive pressure from international value-focused e-commerce platforms:

• For example, Retail Gazette reported that Primark announced price reductions amid concerns about competition from Shein and Temu.
• The UK government has confirmed plans to impose new charges on low-value imports from October 2028, a policy which should impact platforms such as Shein, Temu and similar. As well as being a response to competitive pressures on UK high-street retailers, the move is part of a wider effort to increase accountability for overseas supply chains. Some in the industry have argued that October 2028 isn’t soon enough.
• Last year, Temu’s Senior Legal Counsel and Senior Compliance Manager answered questions before, and gave “some reassurance” to, the UK’s Business and Trade Committee ‘Make Work Pay: Employment Rights Bill’ inquiry in connection with the company’s practices and supplier agreements. Following that, The Conversation publishedan article on Temu’s Consumer-to-Manufacturer business model, which uses reverse auctions, a consigned inventory model and logistics expertise to underpin its pricing strategy. In the same oral evidence session, Shein’s General Counsel gave “almost zero confidence in the integrity of [Shein’s] supply chains” and her reluctance to answer questions “bordered on contempt of the Committee”.
• In the current market, retailers face a difficult balance between protecting margins and remaining competitive. An area of differentiation can be sustainability/ESG (Environmental, Social, Governance). See our earlier article for practical advice on addressing ESG challenges and embedding a sustainability ethos throughout your business.

In the current economic and trading environment, we’re seeing increased demand across retail and leisure for advice on restructuring, refinancing, distressed transactions, employment matters and portfolio optimisation. Recent examples such as Poundland and TG Jones demonstrate the courts’ willingness to approve restructuring plans in the right circumstances:

• A case report has been published for the Poundland restructuring plan. The High Court approved a restructuring plan (which had been opposed by landlords) after finding: creditors would be no worse off under the plan than in the relevant alternative (administration); some creditors had approved the plan; and it represented a fair sharing of the burdens and benefits of the restructuring. The plan provided creditors with 170% of their estimated return in an administration and offered compromised creditors participation in future profits. Landlords were also given additional options through break clauses.
• A case report has been published for the TG Jones restructuring plan. The court approved two inter-conditional restructuring plans. The court held: the alternative (administration) would be more value-destructive for dissenting creditors; core supply creditors would be paid in full over 12 months and others would receive 50% over 36 months; Business Rates Creditors would receive 170% of their estimated administration return plus profit-sharing arrangements; and landlords had termination rights and some other significantly improved terms.

Martyn’s Law introduces a new legal duty for organisations to consider terrorism risks in their day-to-day operations and across their premises. The Home Office has recently published statutory guidance providing further detail of how Martyn’s Law will operate in practice and what will be expected of businesses in scope. In this article, we explore the law, guidance and practical steps businesses can take to make sure they’re prepared.

In related news, under Martyn’s Law, persons responsible for in-scope events or premises must notify the Security Industry Authority. Regulations have now been laid before Parliament, and the Home Office has published guidance, dealing with the notification requirements. The requirements will come into force after 3 April 2027 (in accordance with the minimum implementation period to which the government has committed). Businesses across retail, hospitality and leisure should use this implementation period to prepare.

New Prime Minister Andy Burnham has pledged to reform business rates to support pubs and high street businesses. So far, the government has announced business rate reductions for pubs, clubs and live music venues, but the government has signalled possible wider business rates reform. Changes to small business rates relief and support for restaurants and other parts of the wider hospitality industry are among measures reportedly under consideration. Such changes may be ‘funded’ through a review of reliefs available for businesses the government considers to be ‘anti-social’ (such as vape shops), shifting some of the rates burden from high street businesses to large warehouses used by major online retailers, or through tackling online sellers’ tax non-compliance.

Real Estate

The Law Commission has published two consultation papers proposing significant changes to commercial leasehold law in England and Wales. The consultations cover modernising the 1954 Act, removing anti-avoidance barriers under the 1995 Act, and reforming first-refusal provisions in mixed-use premises under the 1987 Act. The proposals aim to produce a legal framework that better serves the needs of commercial occupiers. The consultations are open until 16 September 2026 and will be of interest to landlords and tenants operating on the high street and across the retail, hospitality, and leisure sectors.

In City of London v 48^th Street Holdings Ltd and Principled Offsite Logistics Ltd, the Court of Appeal has handed down an important judgment ruling that a non-domestic rates (NDR) mitigation scheme isn’t valid. In doing so, it’s overruled an earlier case (Principled Offsite Logistics Ltd v Trafford Council) and clarified the law relating to NDR mitigation schemes. On first sight, this latest case seems like positive news for cash-strapped local authorities seeking to recover as much NDR as possible. However, it may be that if an occupant can show that there is a commercial or business purpose to the occupancy, that may amount to “occupancy” for the purposes of the NDR legislation, and the judgment may prove good news for those wanting to mitigate NDR for unoccupied properties. Please contact us to find out more about NDR mitigation schemes, this case, and the likely impact for your business.

The judgment in Essendi Hotels v London Property Company, handed down in June 2026 features novel arguments relating to the cladding and fire safety issues of a commercially leased high-rise hotel. Finding for the tenant (and based on the specific facts following a sale and leaseback of the hotel), the court held that standard commercial lease covenants imposed liability similar to that under the BSA, in respect of cat 3 ACM cladding panels. It’s an example of the court extending building safety/cladding liability beyond strictly residential property.

Also on building safety, the FCA will conduct a review into insurance premiums for buildings with fire safety risks. There’s nothing specific available to share on the FCA’s review as yet – it’s one to watch – but it may be influenced by the London Trocadero case, which we’ve reported on previously. The case should be of interest across the retail and leisure horizon. Picturehouse claimed that Criterion (the owner/landlord of the London Trocadero) arranged for its insurers to charge significantly higher commission on the insurance premiums which the landlord charged to the tenants as “insurance rent” – but which the insurers then paid to the landlord. Picturehouse claimed that couldn’t be justified, and an amount equal to the commission should be paid back. Picturehouse also argued that the building’s fire sprinklers were turned off in 2015 due to safety renovation works, which led to the insurer ramping up the premiums and increasing the excess to more than £1m. Picturehouse claimed that tenants shouldn’t be obliged to pay insurance increases caused by fire safety issues which were the landlord’s responsibility. The High Court decided that the landlord wasn’t entitled to recover insurance rent corresponding to the commission it received from insurers, but it was entitled to insurance rent covering significant policy excesses imposed due to the fire safety issues. The landlord’s appeal was due to be heard by the Court of Appeal in June 2026, but  it’s now been vacated following a settlement between the parties, and so the High Court’s decision stands.

The government has at last issued its (interim) response setting out its proposals for reforms to the EPC regime for non-residential property. Landlords may be relieved that the government has limited its proposals for raising the standard required to larger premises. It’s proposed that, from 2031, rented premises over 1,000 square metres will need to have a minimum EPC rating of B or higher (subject to the current cost effectiveness test). Premises below 1,000 square metres will continue to be subject to the current minimum standard of E. The previously discussed change to minimum C in 2027 won’t take place.

For information and advice for owners and occupiers across retail, hospitality and leisure, see our recent articles on ESG and UK real estate considerations and sustainability in the built environment, how technology can support.

In related news, recent research suggests energy compliance in the commercial real estate sector is slowing, raising increased concerns of stranded assets and sell-offs.

Owners and occupiers across retail and leisure will be aware of the ban on upward-only rent reviews (UORRs) under the English Devolution and Community Empowerment Act 2026 (EDCEA). The provisions bringing in the ban on UORRs aren’t yet in force – further regulations will have to be passed to bring the ban into effect. The government has indicated it will consult before issuing such regulations, and it’s expected it won’t be before 2027. For more information, see our earlier article (written before EDCEA was enacted, but otherwise still correct).

 Cornerstone Telecommunications Infrastructure v AP Wireless II (UK)  (2026) is an interesting recent example of telecoms renewal litigation. As the case involves renewal of 1954 Act lease under the Landlord and Tenant Act 1954 (as opposed to an Electronic Communications Code renewal) it’s relevant to lease renewals generally, not just those in telecoms. The judgment includes a careful analysis of fundamental applicable principles, demonstrating how the courts will approach renewal lease terms where the parties can’t agree. Of particular note are the rent review provisions. The court adopted review by reference to the CPI (Consumer Prices Index), rather than the RPI (Retail Prices Index). It’s a County Court case, so isn’t binding (only persuasive) on other judges, though it may point to a general but slow trend towards using the CPI in index-linked reviews.

People

Implementation of the Employment Rights Act 2025 (ERA) will continue through 2026 and 2027. Several changes have already taken effect, including day one paternity and unpaid parental leave, changes to statutory sick pay and increased protections relating to industrial action. Logistics employers should keep workforce models, shift arrangements, absence processes and union engagement under review. To help, access our ERA tracker here, and see this Acas resource.

The Equality and Human Rights Commission (EHRC) has issued updated guidance (July 2026) on gender in the workplace. It confirms that, for the purposes of the Equality Act 2010, “sex” means biological sex. This is in line with last year’s For Women Scotland Supreme Court decision, explained in more detail here. For retail and leisure businesses, single-sex spaces (such as toilets and changing rooms – for customers and colleagues alike) will need to be restricted according to biological sex rather than gender identity. Businesses should review policies and spaces to ensure compliance and should continue to be sensitive to those undergoing gender reassignment or dealing with gender dysphoria.

The Telegraph recently reported that more than 1,000 people had signed up to take part in a ‘heat strike’, with actions including lunchtime walkouts, during the recent record-breaking heatwave. Businesses and the government have, so far, pushed back at calls to introduce a maximum working temperature, but this might be ‘one to watch’. In the meantime, for detailed advice and information on dealing with strike action, especially amid the shifting landscape of trade union and industrial disputes law following enactment of the ERA, see our recent article.

Also on trade union law changes, from October 2026, trade unions will have the right to request physical and digital access to workplaces. Click here to find out what that means for employers, and how they can prepare/respond.

The Home Office has now published a draft Code of Practice on Preventing Illegal Working (linked here), providing further details on how the upcoming expansion of the right to work regime beyond direct employees will operate. The new Code is expected to come into force on 1 October 2026.

The changes are significant and will affect businesses that engage contractors, casual workers, agency workers, outsourced labour, platform workers and other non-traditional workforces, regardless of whether they consider themselves to be the individual’s employer.

The UK government is expanding the scope of the Right to Work regime. With effect from 1 October 2026, the regime will extend beyond traditional employees and capture a wider range of working arrangements, including certain workers, individual subcontractors and individuals working within gig economy arrangements. The Home Office has published a draft Code of Practice on Preventing Illegal Working, providing further details on how the upcoming expansion of the right to work regime beyond direct employees will operate. For more information, see our recent article.

Manufacturing & Logistics

Smooth delivery of products and services across Retail & Leisure often goes hand in hand with the smooth running of manufacturing and logistics operations. For the latest issues and developments impacting supply chains, click here.