The total value of retail sales, including fuel, reached a peak value of approximately 515 billion British pounds in 2024. 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 2024, when the sales value of retail in Great Britain was recorded at over 60 billion British pounds.

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

In August 2025, internet sales accounted for 26.2 percent of all retail sales in Great Britain. Over the considered period, food online sales did not go over 10 percent of total retail sales.

UK retail market is leading the way in industry innovation, whether it's high-end retail, sustainable fashion, mobile retailing, or tech capabilities.

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.

As of April 2023, the most popular online marketplaces in the United Kingdom was the U.S. American behemoth Amazon, registering 328.1 million visits per month. Second place was for eBay, with nearly 218.8 million visits. Rounding out the top three most visited online marketplaces in the UK is ASOS at 70.8 million visits per month.

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

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.

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.

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

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UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is valued to increase USD 56.2 billion, at a CAGR of 3.8% from 2024 to 2029. Rapid urbanization and rising consumer spending will drive the UK grocery retail market.

Major Market Trends & Insights

By Product - Food and beverages segment was valued at USD 176.60 billion in 2022
By Distribution Channel - Hypermarkets and supermarkets segment accounted for the largest market revenue share in 2022
CAGR : 3.8%

Market Summary

The Grocery Retail Market in the UK is a dynamic and evolving sector, characterized by the adoption of core technologies and innovative applications. With rapid urbanization and rising consumer spending, grocery retailers are investing in advanced technologies such as automation, AI, and robotics to streamline operations and enhance the customer experience. For instance, the use of self-checkout kiosks and mobile apps for contactless shopping has surged in popularity, particularly in response to the COVID-19 pandemic. However, the market also faces challenges, including the threat from counterfeit grocery products. According to a report by the Food Standards Agency, around 10% of all food and drink products sold in the UK are believed to be counterfeit.
To mitigate this issue, regulatory bodies are implementing stricter regulations and collaborating with retailers to ensure product authenticity. Despite these challenges, opportunities abound for grocery retailers in the UK. The market is expected to witness significant growth in the coming years, with online grocery sales projected to reach 15% of the total market share by 2025. Innovative store layouts and offerings, such as click-and-collect services and subscription-based models, are also gaining popularity among consumers. Overall, the Grocery Retail Market in the UK is a continuously unfolding landscape, shaped by a complex interplay of technological advancements, regulatory requirements, and consumer preferences.

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

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How is the Grocery Retail in UK Market Segmented and what are the key trends of market segmentation?

The grocery retail in UK industry 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 and evolving grocery retail market in the UK, loss prevention strategies continue to be a priority for retailers, with online grocery shopping seeing a significant increase in adoption, reaching 7.1% of total sales in 2020. Sales promotion techniques, such as promotional pricing models and loyalty programs, are essential tools to attract and retain customers. Food safety regulations play a crucial role in ensuring product quality and consumer trust. Stock rotation and inventory optimization are essential for maintaining freshness and reducing waste. Automated checkout systems and self-checkout kiosks streamline the shopping experience, while e-commerce platforms enable seamless online ordering and last mile delivery.

Product traceability and quality control measures are vital for ensuring the authenticity and safety of goods. Retail technology integration, including demand forecasting and data analytics dashboards, enables retailers to optimize store operations efficiency and adapt to changing consumer behavior. Customer service metrics, such as response times and resolution rates, are key performance indicators for maintaining customer satisfaction. The grocery market is expected to grow further, with online sales projected to reach 11.7% of total sales by 2025. The adoption of advanced technologies, such as RFID tagging, AI-driven demand forecasting, and warehouse automation, will continue to transform the industry.

Category management techniques and waste reduction initiatives will help retailers optimize their offerings and reduce costs. The foods and beverages segment, which includes fresh and frozen meat, dairy products, fruits and vegetables, and snack foods, is a significant contributor to the market's growth. The most preferred grocery products in this segment include fresh bread, salty snacks, and ce

In UK Retail Market is projected to grow from USD 2.3 trillion in 2025 to USD 3.7 trillion by 2031, at a CAGR of 8.2%

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. Meanwhile, in July 2025, the sales value amounted to a much lower 40 billion 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 over 508 billion British pounds by 2023. 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 early 2025.

This statistic shows the total annual retail sales (including automotive fuel) in Great Britain from 2005 to 2024, based on sales volumes. In 2024, approximately 482 billion British pounds worth of goods were sold across all retailing sectors in Great Britain. In terms of sales value (amount spent), figures reported by the Office for National Statistics (ONS) in 2024 were the highest within the considered period of time.

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.

This chart presents the share of retail sales revenue generated through online channels in the fourth quarter of 2018 in the United Kingdom (UK), broken down by preferred device. The data reveals that as of the last quarter of 2018, purchases made through smartphones generated the highest share of retail sales revenue at 40.4 percent.

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

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

UK off Price Retail Market size is expected to be worth around USD 14.6 Billion by 2034, from USD 8.7 Billion in 2024, at a CAGR of 5.3%