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.

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.

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

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

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

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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

With consumers placing increasing importance on companies’ environmental credentials, what are UK retailers doing to make their operations more sustainable?

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

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

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.

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.

Market Size statistics on the Clothing Retailing industry in the UK

IBISWorld assesses how social distancing has affected the UK retail sector and how changing consumer behaviour is expected to influence retailing activity in the long term.

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.

Clothing retailing revenue is forecast to fall at a compound annual rate of 0.8% over the five years through 2024-25 to £47.3 billion. This decline predominantly stems from weak performance in 2020-21 thanks to the pandemic. Since then, clothing sales have been propped up by the dramatic increase in photos and videos posted online; strong demand for fast, affordable fashion; and the introduction of credit and financing services like buy-now-pay-later platforms, which have allowed consumers to better manage their budgets and splash the cash on new clothes. Despite their recent growth, clothing retailers have faced several challenges. Online-only retailers like ASOS, Shein and Temu have grown in popularity thanks to their versatility, siphoning sales away from the British high street. Further, the fashion industry's success relies on selling mountains of clothing at low prices, but this has come with devasting environmental and social effects – and times are changing. Retailers have also contended with tightening disposable incomes, with the cost-of-living crisis seeing consumers think twice before adding that new outfit to their baskets. Despite consumer confidence improving since the height of the cost-of-living crisis in 2022-23, it remains weak, limiting spending on clothing. Still, in 2024-25, revenue is expected to bump up by 1.5%. The average profit margin has inched down over the past five years thanks to discounting activity. Clothing retailers will face a tough start to 2025-26, with hikes to the National Living Wage and National Insurance contributions set to ramp up costs. Despite this, opportunities for growth remain. Sustainability remains key, with consumers embracing upcycling, rental options and resale schemes, like ITX’s buy-back initiative. Meanwhile, influencer marketing is shifting towards authenticity as consumers favour genuine engagement over polished content and social commerce is set to boom. Despite e-commerce growth, physical stores remain relevant, with brands like Uniqlo and Abercrombie expanding. AI is also transforming retail, enhancing personalisation, inventory management, and sustainability. To stay competitive, retailers are likely to innovate across digital, in-store and operational strategies. Those that fail to adapt risk not benefitting from a potentially lucrative market. Revenue in is slated to grow at a compound annual rate of 1.1% over the five years through 2029-30 to £50.1 billion, when the average industry profit margin is slated to be 5.8%, weighed down by competition and rising investment in efficiency initiatives.

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

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 expected to inch upwards at a compound annual rate of 0.4% to £15.8 billion. A solid housing market has bolstered the industry's performance as the government has battled against housing shortages across the UK. As house prices swell and the housing stock ages, more consumers choose to refurbish their homes or decorate newly acquired properties, boosting sales for home improvement products. However, the flourishing rental market has shaken up homeware and furnishing retailers as shoppers are deterred from investing in high-value pieces until they find their forever homes. In 2024-25, revenue is expected to slump by 0.5%. Furniture, lighting and homeware retailers face intense external competition from their online-only counterparts, department stores and clothing retailers that have expanded into the homeware arena. Supply chain disruptions and high interest rates complicate the market, making financing harder despite buy-now-pay-later options. While inflation is easing, retailers must adapt to evolving consumer preferences and economic pressures. This has narrowed profitability and revenue growth in the industry. Retailers from other industries will continue to pose a threat. Still, growth opportunities prevail. Government initiatives to stimulate housing activity (think Shared Ownerships and First Homes Scheme) are set to support demand from new homeowners. With the shift to e-commerce and click-and-collect, retailers must enhance in-store convenience or risk losing customers. Augmented reality apps offer a digital edge, letting shoppers visualise furniture at home. Sustainability is also reshaping the industry, with buy-back schemes and repair services becoming popular as eco-consciousness grows. Younger generations, valuing individuality and transparency, push for unique, upcycled pieces. Retailers must adapt logistics to meet faster delivery demands and embrace small-format stores to stay competitive. Over the five years through 2029-30, revenue is anticipated to climb at a compound annual rate of 2.1% to £17.5 billion.

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.