From 2008 to 2022, the total annual turnover of businesses within the UK retail trade has grown considerably. In 2022, turnover from retail trade activities reached over 490 billion British pounds.

The annual retail sales volume in household goods stores in Great Britain were worth approximately 30.9 billion British pounds in 2023. This was a decrease from the previous year, when the value stood at roughly 32.6 billion.

A series of retail sales data for Great Britain in value and volume terms, seasonally and non-seasonally adjusted.

Total sales and average weekly spending estimates for each retail sector in Great Britain in thousands of pounds.

A first estimate of retail sales in value and volume terms for Great Britain, seasonally and non-seasonally adjusted.

In Great Britain, internet sales accounted for 26.8 percent of all retailing sales, as data from March 2025 showed. In February 2021, the share of online sales as a proportion of total retail reached its peak at 37.5 percent.

Internet sales in Great Britain by store type, month and year.

The United Kingdom Hardware Stores Retail Market Report is Segmented by Type (Door Hardware, Building Materials, Kitchen and Toilet Products, and Other Product Types). by Distribution Channels (Offline and Online). The Report Offers the Market Size and Forecasts for the United Kingdom Hardware Stores Retail Market in Value (USD) for all the Above Segments.

In the United Kingdom, retail sales tend to peak during the last month of the year, holiday shopping being the likeliest culprit. In December 2024, the sales value of retailing in the UK amounted to approximately 60 billion British pounds. Retail turnover on the climb Running parallel to this, the turnover of retail trade in the UK made significant strides. Over the past 10 years, UK retail businesses consistently generated improved turnover figures, reaching almost 500 billion British pounds by 2022. Online is driving retail With the increased penetration of online shopping in consumer lives, business strategies of retailers are changing. While online marketplaces are becoming regular staples of everyday life, high street retailers too are setting up online businesses to support their store sales. In the UK, the share of online sales in all retailing increased to over 26 percent by the end of 2024.

Standard error reference tables for the Retail Sales Index in Great Britain.

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UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is forecast to increase by USD 56.2 billion at a CAGR of 3.8% between 2024 and 2029.

The UK Grocery Retail Market is segmented by product (food and beverages, non food), distribution channel (hypermarkets and supermarkets, convenience stores, discount stores, online, others), sales channel (in-store, online delivery, click-and-collect), consumer segment (urban consumers, rural consumers, premium shoppers), product types (fresh produce, packaged foods, household goods, health and beauty), and geography (Europe: UK). This segmentation reflects the market's diversity, driven by increasing demand for Fresh Produce and Health and Beauty products, growing Online and Click-and-Collect channels in urban areas, and a mix of Hypermarkets and Discount Stores catering to both Premium Shoppers and Rural Consumers across the UK.
The Grocery Retail Market in the UK is witnessing significant growth, driven by the trend of rapid urbanization and the resulting increase in consumer spending. These trends are driving the industry to innovate and offer more personalized shopping experiences through unique store layouts and expanded product offerings such as online grocery delivery services.
However, the market faces challenges, including the threat from counterfeit grocery products or instant grocery, which can negatively impact consumer trust and brand reputation. Retailers must prioritize measures to ensure product authenticity and maintain transparency with customers to mitigate these risks.
Navigating this complex landscape requires a strategic approach, with a focus on building strong relationships with suppliers, implementing effective pricing strategies, and leveraging technology to enhance operational efficiency and customer engagement. Companies that can successfully address these challenges while capitalizing on the market's growth opportunities will be well-positioned for success in the dynamic and competitive Grocery Retail Market in the UK.

What will be the size of the UK Grocery Retail Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic UK grocery retail market, sustainability practices are increasingly shaping consumer behavior. Retailers are adopting store designs that prioritize energy efficiency and waste reduction. Customer experience is a key differentiator, with retailers investing in promotion optimization, loyalty programs, and personalized marketing. Consumer trends towards healthier eating and convenience drive product assortment decisions. Retail management focuses on supply chain optimization, retail analytics, and category management to meet demand. Grocery technology, including digital marketing, e-commerce logistics, and inventory control, is transforming food retailing.
Store formats are evolving to include omnichannel retail and demand forecasting to better serve customers. Brand management and social media marketing are essential for building customer loyalty and engagement. Shelf space optimization and category management are crucial for maximizing sales and profitability.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Food and beverages
  Non food


Distribution Channel

  Hypermarkets and supermarkets
  Convenience stores
  Discount stores
  Online
  Others


Sales Channel

  In-Store
  Online Delivery
  Click-and-Collect


Consumer Segment

  Urban Consumers
  Rural Consumers
  Premium Shoppers


Product Types

  Fresh Produce
  Packaged Foods
  Household Goods
  Health and Beauty


Geography

  Europe

    UK

By Product Insights

The food and beverages segment is estimated to witness significant growth during the forecast period.

In the dynamic grocery retail market, various entities shape the industry landscape. Hygiene standards are prioritized to ensure food safety, while value products cater to consumers' increasing demand for affordability. Warehouse management systems streamline operations, and seasonal produce offers freshness and variety. Free-from products, such as gluten-free and vegan, cater to diverse dietary needs. Self-checkout kiosks enhance the shopping experience, and convenience stores cater to on-the-go consumers. Dairy products, canned goods, and dietary supplements are essential staples, while premium and private label brands differentiate offerings. Meat products, dairy, and bakery items are popular, with sales forecasting and local sourcing ensuring freshness and availability.

Sales in the household goods segment

The UK AI in retail market size reached USD 466.99 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,201.19 Million by 2033, exhibiting a growth rate (CAGR) of 18.80% during 2025-2033. The market is driven by increasing innovations in technology that enhance retail operations and customer experiences, along with the expanding e-commerce industry, which is catalyzing the need for seamless shopping interactions in the UK.

Retail sales categories and descriptions and their percentage of all retailing in Great Britain.

The extent to which individual businesses in Great Britain experienced actual changes in their sales.

The total value of retail sales, including fuel, reached a peak value of approximately 509.77 billion British pounds in 2023. For the retail industry excluding fuel sales, this figure similarly indicated a record value that year.   UK retail business as usual   Generally, retail sales in the UK displayed steady growth with the exception of 2009, when annual sales experienced a noticeable drop. Forecasts project that both store-based and e-commerce sales will continue their steep increase by 2026, with online sales reaching over 200 billion British pounds by that period.    Holiday spending: industry’s best friend   When we look at the monthly breakdown of retail sales value, an unmistakably clear picture of rigorous holiday spending greets us. December is the month when retail has its best days. This was particularly true in December 2019, when the sales value of retail in Great Britain was recorded at over 50 billion British pounds.

Market Size statistics on the Clothing Retailing industry in the UK

Descriptions and categories of the Internet Sales Index and their percentage of all retailing for Great Britain.

The report covers UK Online Retail Debit Card Payment Market, Total Number of Retail Categories UK Online Retail Market.t, UK Online Retail Pet Care Market, UK Online Retail Consumer Electronics Market.

Key information about United Kingdom Retail Sales Growth

• United Kingdom Retail Sales dropped 2.1 % YoY in May 2023, compared with a 3.3 % decrease in the previous month.
• UK Retail Sales Growth YoY data is updated monthly, available from Jan 1997 to May 2023, with an average growth rate of 2.4 %.
• The data reached an all-time high of 40.9 % in Apr 2021 and a record low of -22.9 % in Apr 2020.
• In the latest reports, Car Sales of UK recorded 1,943,572.0 units in Dec 2022, representing a drop of 5.1 %.

Over the five years through 2024-25, revenue is forecast to climb at a compound annual rate of 1.9% to £12.9 billion. Sports events that boost levels of sports participation significantly impact industry revenue as demand for sporting equipment and clothing drastically grows. The pandemic heavily affected industry revenue; however, larger retailers used their solid brand name by shifting revenue channels online and retaining income. Smaller retailers with little capital couldn’t quickly create an extensive online presence and struggled to stay afloat. After revenue rebounded in 2021-22, it dipped over 2022-23 as consumers pulled back their spending habits amid challenging cost of living pressures. In 2023-24, revenue fell following a year with high inflation, causing consumers to lower discretionary spending on sports equipment. During the year, the industry's operating profit margin remained pressured by an increased minimum wage and a weak pound, inflating import costs. As the market share concentration for the big four retailers has grown, key industry suppliers (i.e., Nike) have shifted their focus to awarding larger retailers exclusive distribution rights. However, these key suppliers also externally compete with traditional sports retailers through e-commerce channels. According to Salience Search Marketing's latest report on the e-commerce sector, Nike was the UK's most prominent e-commerce brand in 2023. Over 2024-25, revenue is expected to expand by 7.6% as cost-of-living pressures alleviate and sports participation increases. Over the five years through 2029-30, revenue is forecast to expand at a compound annual rate of 4.5% to reach £16.1 billion. Using new artificial intelligence technologies and checkout store automation is estimated to elevate footfall beyond pre-pandemic levels in the short term by strengthening the personalised in-store consumer feel. Complimenting these new technologies with a modern online experience is likely to expand industry revenue as retailers look to create a 'one-stop-shop' for consumers. Meanwhile, government schemes to tackle childhood obesity and investments of £300 million to enhance cycling tracks and footpaths are all estimated to accelerate sports participation rates, growing the industry's consumer base.