In 2021, the size of the UK grocery market stood at around *** billion British pounds. The market has been steadily growing since 2004 and is estimated to reach over *** billion British pounds by 2027. Grocery retail channels It was estimated that in 2027, supermarkets will be the largest sales channel for grocery retail with a value of almost ** billion pounds. Online channels are expected to amount to **** billion pounds. UK grocery market The five leading companies on the grocery market are Tesco, Sainsbury’s, Asda, Morrisons, and Aldi. It was only the German discounter Aldi that saw rapid growth and has proven to be a significant disruptive force on the market. On average, households in the UK spent **** British pounds on food and non-alcoholic drinks per week in 2020.

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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 2025, the value of the leading sales channels in grocery retailing came to approximately ***** billion British pounds (GBP) in the United Kingdom. Of the major sales channels, supermarkets had the largest share of the market value with over *** billion pounds. Supermarkets had more than twice as big a market value as the convenience channel, the second largest channel. By 2030, the value of grocery retailing is expected to increase to over *** billion British pounds. Where UK shoppers buy groceries Some ** percent of surveyed grocery shoppers stated that they regularly shopped at supermarkets in the UK. Online retailers ranked in second place, with*** percent. Market leader Tesco held just over *********** of the market share of all grocery stores in Great Britain in July 2025. Together with Sainsbury's, the two retailers had a combined market share of **** percent. Tesco operated roughly ***** stores in the United Kingdom and the Republic of Ireland in 2025. With this presence, the company regularly reached ** percent of shoppers according to a recent survey.

The UK e-commerce market size reached USD 297.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,483.7 Billion by 2033, exhibiting a growth rate (CAGR) of 18.1% during ​2025-2033​. The growing online shopping activities among the masses, rising convenience-driven purchasing behaviors, competitive offerings from both established retailers and agile digital-native brands, and increasing user confidence in secure online transactions are some of the factors impelling the market growth.

UK Digital Transformation Market Report is Segmented by Technology Type (Analytics AI & ML, Extended Reality, Iot, Industrial Robotics, Blockchain and More), End-User Industry (Manufacturing, Oil Gas & Utilities, Retail & E-Commerce, Transportation & Logistics and More), Component (Solutions, Services), Deployment Mode (Cloud, On-Premise), Organisation Size (Large Enterprises, Smes).

European supermarkets’ revenue is forecast to inch upwards at a compound annual rate of 0.6% over the five years through 2025 to reach €1.7 trillion. European supermarkets face intense price competition amid lingering cost pressures. Though EU food inflation stabilised at 2.7% in April 2025 according to Eurostat, consumer focus on value remains high. Discounters like Aldi and Lidl continue to gain share as shoppers seek lower prices. Supermarkets are investing heavily in price-matching schemes, though sustaining these is financially challenging. Tesco and Sainsbury’s have begun scaling back such initiatives, while Asda has abandoned its price match strategy. Private label growth is reshaping the sector, with sales reaching €352 billion in 2024, the Private Label Manufacturers Association (PLMA) notes. Retailers are diversifying these ranges to balance value, quality and margins. Smarter product mixes are emerging as retailers prioritise local sourcing and premium niches to build loyalty. Strategies like Sainsbury’s ‘Supporting British’ and Mercadona’s local sourcing model resonate with values-driven shoppers. Loyalty programmes have become a strategic pillar, offering personalisation and margin-friendly growth. Programmes like Tesco Clubcard and Carrefour+ drive retention and profitability beyond price wars. Finally, rising labour costs add further pressure. Recent minimum wage increases across Europe have prompted supermarkets to pursue automation, cost savings, and operational efficiencies to protect profitability in an evolving retail landscape. In 2025, revenue is expected to grow at 0.9%, while profit is expected to reach 5.2%, a minor drop from 5.6% in 2020, thanks to intense price competition. Over the five years through 2030, supermarkets’ revenue is slated to climb at a compound annual rate of 2.9% to €2 trillion. Private label growth remains a structural trend while health, convenience and on-the-go meals are driving new demand, particularly among younger shoppers. Supermarkets must diversify their ranges to capture this growth, blending value, quality and functionality. Convenience is also fuelling an ongoing channel shift. Online grocery sales remain, with consumers willing to pay premiums for faster delivery. Retailers are scaling up e-commerce, partnering with delivery apps and innovating store formats to meet demand for flexibility. Smaller urban stores, hybrid models and grocerants are gaining traction. Supermarkets are accelerating investment in automation and AI to boost efficiency and margins. Personalised loyalty schemes are driving customer retention, while automation in warehouses and stores enhances productivity. Trials in drone delivery and robotic shelf scanning signal further innovation. Consolidation and integration are key to navigating sustained margin pressure. Larger grocers are pursuing M&A and pan-European alliances to drive scale, while moving upstream into food production for resilience. Supermarkets that adapt rapidly – blending private labels, convenience, technology and scale – will outperform in Europe’s increasingly competitive grocery landscape.

United Kingdom's main stock market index, the GB100, rose to 9210 points on September 17, 2025, gaining 0.16% from the previous session. Over the past month, the index has climbed 0.57% and is up 11.59% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks this benchmark index from United Kingdom. United Kingdom Stock Market Index (GB100) - values, historical data, forecasts and news - updated on September of 2025.

UK IT Services Market size was valued at USD 105.14 Billion in 2024 and is projected to reach USD 180.65 Billion by 2032, growing at a CAGR of 7% from 2025 to 2032.UK IT Services Market DynamicsThe key market dynamics that are shaping the UK IT services market include:Key Market DriversDigital Transformation Acceleration Post-COVID: The pandemic has dramatically accelerated digital transformation initiatives across UK businesses, creating sustained demand for IT services. According to the Office for National Statistics (ONS), the percentage of UK businesses using cloud computing services increased from 42% in 2020 to 53% in 2023, with enterprise spending on digital transformation reaching USD 66.46 billion in 2023. The UK government's Digital Strategy initiative has further committed USD 3.23 billion in digital skills training through 2025 to support this transformation.

The UK IT Services Market Report is Segmented by Service Type (IT Consulting and Implementation, IT Outsourcing, Business Process Outsourcing, and More), End-User Enterprise Size (Small and Medium Enterprises, and Large Enterprises), Deployment Model (Onshore Delivery, Nearshore Delivery, and More), and End-User Vertical (BFSI, Government and Public Sector, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2023, is was forecast that the grocery market in the United Kingdom would grow by around 6.1 percent. Growth hit an all-time high in 2020 at over eight percent and is forecast to decrease to 2.3 percent by 2026.

Market shares of grocery stores

As of August 2023, the four most important players on the grocery market were Tesco, Sainsbury’s, Asda, and Aldi. The market leader Tesco had a share of over a quarter of the market. Fifth-placed Morrisons was around 1.5 percent away from retaking fourth place from Aldi.

Sales channels

The most relevant grocery sales channels measured by generated monetary value are supermarkets and convenience stores. Discounters, a smaller channel in comparison, still surpassed online sales.

The UK Meal Replacement Products market is forecasted to reach USD 1,341.5 million in 2025, with strong momentum projected for the next decade. By 2035, the industry is expected to grow to USD 2,462.9 million, driven by rising health-conscious consumers, growing demand for weight management solutions, and increased interest in plant-based nutrition. The sector is anticipated to expand at a compound annual growth rate (CAGR) of 6.3% from 2025 to 2035.

Attributes	Values
Estimated UK Industry Size (2025)	USD 1,341.5 million
Projected UK Market Value (2035)	USD 2,462.9 million
Value-based CAGR (2025 to 2035)	6.3%

Semi-Annual Market Update for the UK Meal Replacement Products Market

Year	2024
H1 Growth Rate (%)	7.0%
H2 Growth Rate (%)	6.6%

Year	2025
H1 Growth Rate (%)	7.0%
H2 Growth Rate (%)	6.0%

Analysis of UK Meal Replacement Categories by Segments

By Product Type	Market Share
Powder	40%
Remaining segments	60%

By Consumer Type	Market Share
Weight Management	48%
Remaining segments	52%

Market Concentration and Competitive Landscape in the UK Meal Replacement Products Ecosystem

Company	Market Share
Huel	22.0%
MyProtein (The Hut Group)	18.0%
SlimFast (Glanbia)	15.0%
Maximuscle (GSK)	12.0%
PhD Nutrition	8.0%
Other Players	25.0%

Key information about United Kingdom Market Capitalization

• United Kingdom Market Capitalization accounted for 3,182.091 USD bn in Feb 2025, compared with a percentage of 3,120.628 USD bn in the previous month
• UK Market Capitalization is updated monthly, available from Apr 1999 to Feb 2025
• The data reached an all-time high of 4,211.587 USD bn in Oct 2007 and a record low of 1,402.869 USD bn in Sep 2002

CEIC converts monthly Market Capitalization into USD. London Stock Exchange provides Market Capitalization in local currency. The Federal Reserve Board period end market exchange rate is used for currency conversions. Market capitalization includes only domestically listed companies. As of 2017, definitions from the revised Markets in Financial Instruments Directive (MiFID II) have been introduced.

The UK e-commerce market, a significant player in the global landscape, exhibits robust growth potential. With a 2025 market size estimated at £280.55 million (based on the provided global value and adjusting for the UK's share of the global market—a reasonable assumption considering the UK's advanced digital infrastructure and consumer behavior), the sector is projected to maintain a strong Compound Annual Growth Rate (CAGR) of approximately 21.76%. This growth is fueled by several key drivers. Increased internet penetration and smartphone usage continue to expand the addressable market, providing convenient access to online shopping for a broader demographic. The rising popularity of online marketplaces like Amazon and eBay, coupled with the aggressive expansion of omnichannel strategies by traditional retailers, fosters competition and innovation, ultimately benefiting consumers with greater choice and value. Furthermore, evolving consumer preferences towards convenience, personalized experiences, and seamless delivery options further fuel this expansion. However, challenges remain. While the market enjoys high growth, potential restraints include concerns surrounding data privacy and security, increasing competition, and the fluctuating economic climate. Specifically, the segments driving growth include fashion and apparel, beauty and personal care, and consumer electronics. These sectors benefit from strong online presence, visual merchandising opportunities, and the ability to target specific demographics effectively. The B2B e-commerce sector is also anticipated to experience considerable growth, fueled by the increasing adoption of digital procurement solutions by businesses. Key players like Amazon, eBay, Asos, and others are aggressively vying for market share, utilizing advanced technologies and strategic partnerships to consolidate their positions and capture opportunities within the diverse segments of the UK e-commerce landscape. Geographical distribution within the UK itself displays strong regional variations, with London and other major urban centers exhibiting higher penetration rates compared to rural areas. This necessitates tailored strategies and targeted investment for sustained market expansion. Recent developments include: May 2024 - Metapack, a prominent player in e-commerce delivery technology, announced that Mountain Warehouse, a significant outdoor clothing company in the United Kingdom, extended its partnership with Metapack to enhance its delivery capabilities and support its growth strategy. Already utilizing Metapack Delivery Manager, Mountain Warehouse incorporated Metapack’s Delivery Options and Metapack Intelligence solutions into its operations. This investment in shipping infrastructure aims to deliver superior e-commerce experiences to customers across the United Kingdom and Canada., March 2024 - Kin + Carta, a global player in digital transformation consulting, introduced an advanced generative AI and large language model (LLM) tool for the UK retailer Matalan. This innovative tool enables Matalan to efficiently generate comprehensive product descriptions for new items as they are added to its online inventory.. Key drivers for this market are: Increase Developments of 5G Technology, Increased Adoption of Online Payments. Potential restraints include: Increase Developments of 5G Technology, Increased Adoption of Online Payments. Notable trends are: Innovations in 5G Technology is Driving the Market Growth.

The market share of the leading supermarkets in Great Britain (GB) has begun to shift from the traditional market leaders to discounters in recent years. However, Tesco and Sainsbury's have continually had the largest share over the period under consideration, holding **** percent of the market together as of July 2025. Prior to the popularity of the discounters, the grocery retail market was dominated by the 'big four' supermarkets: Tesco, Sainsbury's, Asda, and Morrisons. On the back of the post-Brexit uncertainty and growing inflation, consumer behavior has shifted in favor of cheaper alternatives such as Aldi and Lidl. In September 2022, Aldi took over fourth place in the grocery store ranking from Morrisons for the first time. In April 2023, Aldi's market share reached double digits for the first time. In July 2025, this figure stood at **** percent.

The UK software distribution market is anticipated to grow exponentially in the next decade, owing to the growing acceptance for cloud-based solutions, digital transformation across various sectors, and the increasing prevalence of subscription-based software models. At an estimated market value of USD 22,115.2 million in 2025, the market is expected to be on a rise at a CAGR of 12.8% till USD 73,743.7 million by 2035.

Attributes	Values
Estimated UK Market Size in 2025	USD 22,115.2 million
Projected UK Market Size in 2035	USD 73,743.7 million
Value-based CAGR from 2025 to 2035	12.8%

Semi-Annual Market Update for UK Software Distribution Market

Particular	Value CAGR
H1 2024	11.9% (2024 to 2034)
H2 2024	12.4% (2024 to 2034)
H1 2025	12.6% (2025 to 2035)
H2 2025	13.1% (2025 to 2035)

An Analysis of the UK Software Distribution Market by Segment

Deployment Type	Market Share (2025)
Cloud-Based Distribution	65.4%
On-Premise Distribution	34.6%

Organization Size	Market Share (2025)
Small and Medium Enterprises (SMEs)	38.2%
Others	61.8%

Market Concentration and Competitive Landscape

Vendors	Market Share (2025)
Softcat	26.7%
Bytes Technology Group	21.5%
Computacenter	19.4%
SCC UK	15.3%
Others	12.8%

The United Kingdom Digital Transformation Market is experiencing robust growth, projected to reach a substantial size, driven by increasing adoption of advanced technologies across diverse sectors. The market's Compound Annual Growth Rate (CAGR) of 14.72% from 2019 to 2024 indicates significant momentum. This growth is fueled by several key factors. Firstly, the increasing need for enhanced operational efficiency and cost reduction across industries like manufacturing, BFSI, and retail is pushing businesses towards digital solutions. Secondly, the rising adoption of cloud computing, IoT, and AI offers significant opportunities for improved productivity, data-driven decision-making, and customer experience enhancement. Furthermore, government initiatives promoting digitalization and substantial investments in digital infrastructure within the UK are further accelerating market expansion. Specific segments like Extended Reality (XR) and Industrial Robotics show particularly strong growth potential, driven by their applications in enhancing workplace safety, optimizing production processes, and providing innovative customer engagement solutions. While challenges remain, such as data security concerns and the need for skilled workforce development, the overall market outlook for the UK Digital Transformation Market remains exceptionally positive over the forecast period (2025-2033). The key players in the UK market, including Google, IBM, Microsoft, and Siemens, are strategically investing in research and development, expanding their service offerings, and forging strategic partnerships to capitalize on this growth. The manufacturing, oil & gas, and healthcare sectors represent significant end-user industries driving demand. While data limitations prevent precise regional breakdowns within the UK, we can project considerable growth across regions based on the overall national CAGR and the consistent adoption of digital technologies across the country. Analyzing specific use cases within each segment reveals a consistent trend of technology adoption aimed at improving efficiency, enhancing customer relationships, and strengthening cybersecurity measures. The market's trajectory indicates substantial potential for further expansion, with continuous innovation in underlying technologies promising to fuel ongoing growth through 2033. This insightful report provides a detailed analysis of the United Kingdom digital transformation market, offering a comprehensive overview of its growth trajectory, key players, and emerging trends. The study period spans from 2019 to 2033, with 2025 serving as the base and estimated year. The report leverages extensive market research to provide valuable insights for businesses seeking to navigate this dynamic landscape. This report is crucial for understanding the UK's digital evolution and the opportunities it presents. Recent developments include: In June 2024, Salesforce announced that starting July 31, 2024, its Data Cloud would be accessible on Hyperforce, a platform architecture rooted in the public cloud, specifically in the United Kingdom (UK). This move aims to empower organizations in the United Kingdom to leverage the Data Cloud's capabilities. By keeping data stored within the country, it can adhere to local regulations and compliance standards. This setup enhances performance, enabling them to manage heightened workloads efficiently on the public cloud., In March 2024, ISA Cybersecurity, a Canadian firm specializing in cybersecurity and incident response, inaugurated its inaugural UK office. This strategic move was prompted by the rising cybercrime rates. ISA Cybersecurity, renowned for its Detection, Response, and Recovery Services, along with its Managed Security Services (MSS), chose London as the site for its expansion. The primary goal of this new branch is to cater to its expanding transatlantic client base and introduce its renowned services to the UK market.. Key drivers for this market are: Increase in the adoption of big data analytics and other technologies in the region, The rapid proliferation of mobile devices and apps. Potential restraints include: Increase in the adoption of big data analytics and other technologies in the region, The rapid proliferation of mobile devices and apps. Notable trends are: Analytics, Artificial Intelligence and Machine Learning is Anticipated to Witness Growth in Demand.

The UK CCS market is expected to grow at a high rate and is estimated to reach about USD 3,524.9 million by 2035, growing at a CAGR of 16.1% from 2025 to 2035.

Attribute	Details
Anticipated Forecast Value (2035)	USD 3524.9 Million
Value CAGR (2025 to 2035)	16.1%

Industry Wise Growth and Trends

Industry	Industrial Sector
CAGR (2025 to 2035)	8.0%
Key Trends	Decarbonization of Humber and Teesside industrial clusters.

Industry	Power Plant
CAGR (2025 to 2035)	6.8%
Key Trends	Retrofitting gas plants with CCS to meet emission targets.

Over the five years through 2025-26, revenue is expected to increase at a compound annual rate of 2.3% to £5 billion. The numerous benefits of online education and training (e.g. reduced learning and development costs, time savings and flexibility and promotion of continuous development) have spurred growth. Recognising its advantages, the government has implemented a series of measures to hasten the uptake of educational technology by investing in improving household internet connections across the UK. The rise in student numbers has supported demand for additional training courses for those looking to boost their grades. The COVID-19 pandemic hiked revenue during 2020-21, with the forced closure of schools and universities pushing many courses online. Many universities are now committed to ensuring lectures and course material are uploaded online, a legacy of the COVID-19 technological wave. Revenue is anticipated to grow by 2.6% over 2025-26, with growth picking up again after naturally slowing following the surge in demand during the pandemic and encouragement from many critics to return to face-to-face learning to improve the learning experience and re-connect classmates. Over the five years through 2030-31, revenue is forecast to climb at a compound annual rate of 4.6% to £6.2 billion. The COVID-19 pandemic has hastened the adoption of online education and training, as lockdown periods normalised the use of technology and individuals have become accustomed to a new learning method. Unemployment rates are low, but a high number of vacancies remain, despite falling from COVID-19 highs, that aren't being met with the right skills, which is encouraging online learning and training. The number of UK 16- to 18-year-olds participating in full-time education is high, with record university applications that will boost online learning too. The growing skills gap will sustain demand as online platforms look to adapt to the changing job market and provide employees with the skills needed to secure work. The rise of free educational content through social media platforms like YouTube and LinkedIn will constrain future growth. The average profit margin is expected to expand to 18.4% in 2030-31.

The UK Luxury Goods Market size was valued at USD 19.25 billion in 2024 and is projected to reach USD 28.56 billion by 2032, growing at a CAGR of 5% from 2025 to 2032.Key Market Drivers:Rising Affluent Consumer Base: The UK's affluent consumer base, including over 700,000 high-net-worth individuals (HNWIs), is driving the luxury goods market. This demographic, expected to continue growing, is driving demand for premium products like designer fashion, high-end watches, and exclusive automobiles. The rising affluence of consumers drives both domestic and international demand for luxury goods in the UK.Growth of E-Commerce and Online Shopping: The UK luxury goods market has seen a 15% growth in online sales in 2023, driven by the increasing popularity of e-commerce platforms. Luxury brands have adapted by offering seamless digital shopping experiences, allowing consumers to access global luxury brands at the click of a button, contributing to the overall market growth.

United Kingdom Market Capitalisation: UK Main Market: Total data was reported at 2,499,251.385 GBP mn in Mar 2025. This records a decrease from the previous number of 2,527,274.100 GBP mn for Feb 2025. United Kingdom Market Capitalisation: UK Main Market: Total data is updated monthly, averaging 2,256,749.813 GBP mn from Feb 2017 (Median) to Mar 2025, with 98 observations. The data reached an all-time high of 2,527,274.100 GBP mn in Feb 2025 and a record low of 1,618,175.400 GBP mn in Oct 2020. United Kingdom Market Capitalisation: UK Main Market: Total data remains active status in CEIC and is reported by London Stock Exchange. The data is categorized under Global Database’s United Kingdom – Table UK.Z004: London Stock Exchange: Market Capitalisation: Main Market.