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

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.

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 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.

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.

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%

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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

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 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.

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.

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

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

Retail Sales in the United Kingdom decreased 1.10 percent in October of 2025 over the previous month. This dataset provides the latest reported value for - United Kingdom Retail Sales MoM - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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.

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.

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.

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%

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Retail Analytics Market Size 2025-2029

The retail analytics market size is forecast to increase by USD 28.47 billion, at a CAGR of 29.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing volume and complexity of data generated by retail businesses. This data deluge offers valuable insights for retailers, enabling them to optimize operations, enhance customer experience, and make data-driven decisions. However, this trend also presents challenges. One of the most pressing issues is the increasing adoption of Artificial Intelligence (AI) in the retail sector. While AI brings numerous benefits, such as personalized marketing and improved supply chain management, it also raises privacy and security concerns among customers.
Retailers must address these concerns through transparent data handling practices and robust security measures to maintain customer trust and loyalty. Navigating these challenges requires a strategic approach, with a focus on data security, customer privacy, and effective implementation of AI technologies. Companies that successfully harness the power of retail analytics while addressing these challenges will gain a competitive edge in the market.

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

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The market continues to evolve, driven by the constant need for businesses to gain insights from their data and adapt to shifting consumer behaviors. Entities such as text analytics, data quality, price optimization, customer journey mapping, mobile analytics, time series analysis, regression analysis, social media analytics, data mining, historical data analysis, and data cleansing are integral components of this dynamic landscape. Text analytics uncovers hidden patterns and trends in unstructured data, while data quality ensures the accuracy and consistency of information. Price optimization leverages historical data to determine optimal pricing strategies, and customer journey mapping provides insights into the customer experience.

Mobile analytics caters to the growing number of mobile shoppers, and time series analysis identifies trends and patterns over time. Regression analysis uncovers relationships between variables, social media analytics monitors brand sentiment, and data mining uncovers hidden patterns and correlations. Historical data analysis informs strategic decision-making, and data cleansing prepares data for analysis. Customer feedback analysis provides valuable insights into customer satisfaction, and association rule mining uncovers relationships between customer behaviors and purchases. Predictive analytics anticipates future trends, real-time analytics delivers insights in real-time, and market basket analysis uncovers relationships between products. Data security safeguards sensitive information, machine learning (ML) and artificial intelligence (AI) enhance data analysis capabilities, and cloud-based analytics offers flexibility and scalability.

Business intelligence (BI) and open-source analytics provide comprehensive data analysis solutions, while inventory management and supply chain optimization streamline operations. Data governance ensures data is used ethically and effectively, and loyalty programs and A/B testing optimize customer engagement and retention. Seasonality analysis accounts for seasonal trends, and trend analysis identifies emerging trends. Data integration connects disparate data sources, and clickstream analysis tracks user behavior on websites. In the ever-changing retail landscape, these entities are seamlessly integrated into retail analytics solutions, enabling businesses to stay competitive and adapt to evolving market dynamics.

How is this Retail Analytics Industry segmented?

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

Application

  In-store operation
  Customer management
  Supply chain management
  Marketing and merchandizing
  Others


Component

  Software
  Services


Deployment

  Cloud-based
  On-premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Application Insights

The in-store operation segment is estimated to witness significant growth during the forecast period. In the realm of retail, the in-store operation segment of the market plays a pivotal role in optimizing brick-and-mortar retail operations. This segment encompasses various data analytics applications within phys

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

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