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

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.

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.

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

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

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.

Standard error reference tables for the Retail Sales Index 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.

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

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.

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%

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.

Online retail in the United Kingdom has been gaining ground in the past decade. With the onset of the coronavirus (COVID-19) crisis, the value of online retail sales in the United Kingdom peaked at around 129.5 billion British pounds in 2021. In 2022, the figure decreased to ***** billion British pounds. However, they then went through another recovery and achieved around ***** billion British pounds in 2024. What ranks high in UK e-commerce? In the United Kingdom, clothing and household goods were the most popular retail items consumers purchased through the internet in 2020. Data published by the Office for National Statistics (UK) showed that other leisure activities and services such as booking holiday accommodations, travel arrangements and event tickets were other areas consumers depended on the internet to buy. German e-commerce market The UK might have the highest share of online sales in retail trade, but other European countries such as Germany and France have had impressive track records over the years as well. According to the forecasts provided by German E-commerce and Distance Selling Trade Association (bevh), the market volume of Germany’s e-commerce sector was projected to see over ** billion euros in 2021.

View monthly updates and historical trends for UK Retail Sales MoM. from United Kingdom. Source: Office for National Statistics. Track economic data with …

This report analyses retail sales volumes in the United Kingdom. The data is sourced from the Office for National Statistics (ONS), in addition to estimates by IBISWorld, and is adjusted for seasonality. The figures are averaged over each financial year (i.e., April through March) from an index of sales with a base value of 100 for the calendar year 2018. Retail sales data is collated by the ONS on a monthly basis. The retail sales index comprises consideration of food retailing, non-food retailing, and non-store retailing (e.g., mail order), albeit excluding sales of automotive fuel. Both the volume and value of UK retail sales are sensitive to: changes in consumer confidence; the propensity of consumers to make discretionary purchases, relative to household disposable income levels; the availability of consumer credit; monetary policy, whereby changes in interest rates can affect the yield on savings or facilitate consumer spending; and a number of other socio-economic factors. Seasonal factors (e.g., Christmas shopping at the tail end of a given calendar year, higher temperatures that may persuade many to pursue recreational rather than retail activities) can result in cyclical deviations from underlying retail sales trends. However, the data presented is adjusted for seasonality.

Clothing retailing revenue is forecast to rise at a compound annual rate of 5.2%. Clothing retailers have faced a challenging period. Online shopping continues to fuel high return rates, averaging 30%, straining logistics and denting retailers’ returns Rising wage costs are also squeezing margins profit, with April 2025’s National Living Wage hike adding £7 billion in extra costs across the UK retail sector, according to the British Retail Consortium. Consumer confidence remains fragile, dampening growth forecasts and driving intense promotional activity in the key winter period. UK clothing retailers are transforming their operations amid shifting economic, social and geopolitical pressures. Many are accelerating nearshoring to protect supply chains, cut lead times and strengthen quality oversight, while reducing transport emissions. Geopolitical tensions and shipping disruptions are driving this shift, though higher production costs and post-Brexit trade rules have created additional challenges. Still, opportunities for growth remain. Social media is reshaping fashion retail, turning platforms like TikTok and Instagram into powerful sales channels, especially among younger consumers. At the same time, fast fashion is falling out of favour as shoppers and regulators push for sustainability. Retailers are pivoting to circular models, durability initiatives and transparent practices to remain competitive in a changing market. In 2025-26, revenue is expected to bump up by 1.6% to €50 billion, while the average profit margin is expected to reach 10.8% in the current year, a marked rise on the 4.8% recorded five years previously, but still lower than pre-pandemic levels thanks to rising costs. Revenue is slated to grow at a compound annual rate of 3.2% over the five years through 2030-31 to £58.6 billion. Social commerce is set to surge. Platforms like TikTok and Instagram are integrating shopping features and live shopping will gain momentum, blending entertainment and commerce to engage younger audiences. Physical stores will retain their place, though, with major brands expanding and reimagining spaces to deliver immersive, tech-enabled experiences. AI will transform retail by personalising shopping, optimising inventory and supporting sustainability goals. However, regulatory shifts loom large. Higher business rates from 2026 will pressure profit, while scrapping the de minimis import threshold could level competition by imposing VAT on low-value imports. These developments signal a retail landscape defined by digital integration, immersive in-store experiences and tighter regulation, demanding agility from clothing retailers.

Retail sales categories and descriptions and their percentage of all retailing in 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%