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.

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.

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.

As of the second quarter of 2025, there were approximately 3.7 million people employed in the wholesale and retail sector in the UK, compared with 4.1 million in the first quarter of 2000.

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.

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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

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

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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?

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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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

Global UK Retail Parks 2018 - 2023 is segmented by Application (Consumers, Businesses, Insurance companies), Type (Insurance, Technology, Distribution) and Geography(North America, LATAM, West Europe, Central & Eastern Europe, Northern Europe, Southern Europe, East Asia, Southeast Asia, South Asia, Central Asia, Oceania, MEA)

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.

Artificial Intelligence in FMCG and Retail Market Outlook

The global market size for Artificial Intelligence (AI) in the FMCG and retail sectors was valued at approximately USD 15.2 billion in 2023 and is projected to reach around USD 94.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 22.5%. This impressive growth can be attributed to the increasing adoption of AI technologies to enhance customer experience, optimize supply chain management, and improve inventory management.

The rapid advancement and integration of AI technologies have revolutionized the FMCG and retail sectors, driving significant growth in this market. One of the primary growth factors is the increasing demand for personalized customer experiences. AI-powered systems enable businesses to analyze vast amounts of data, allowing them to tailor recommendations, offers, and advertisements to individual consumer preferences. This personalization boosts customer satisfaction and loyalty, leading to higher sales and revenue for businesses. Additionally, AI technologies such as chatbots and virtual assistants provide 24/7 customer support, further enhancing the customer experience.

Another significant growth driver for the AI in FMCG and retail market is the need for efficient inventory management. Traditional inventory management practices often lead to overstocking or stockouts, resulting in financial losses. AI-driven inventory management systems utilize predictive analytics to forecast demand accurately, ensuring optimal stock levels. These systems can analyze historical sales data, market trends, and other variables to predict future demand, enabling businesses to make informed decisions about stock replenishment. This optimization of inventory not only reduces costs but also minimizes waste, contributing to sustainable business practices.

The optimization of supply chain operations through AI is also a crucial factor propelling market growth. AI technologies can analyze and interpret vast amounts of data from various sources, providing real-time insights into supply chain processes. This enables businesses to detect inefficiencies, reduce operational costs, and enhance overall supply chain performance. For example, AI-powered systems can predict potential disruptions in the supply chain and suggest alternative routes or suppliers, mitigating risks and ensuring timely delivery of products. As a result, businesses can maintain a competitive edge in the market while meeting customer demands efficiently.

Regionally, the adoption and growth of AI technologies in the FMCG and retail sectors vary across different parts of the world. North America, particularly the United States, leads the market due to the early adoption of advanced technologies and significant investments in AI research and development. Europe follows closely, with countries like Germany and the UK actively integrating AI into their retail and FMCG operations. The Asia Pacific region is expected to witness the highest growth during the forecast period, driven by the rapid digitization of economies such as China and India. The Middle East & Africa and Latin America are also gradually embracing AI technologies, albeit at a slower pace.

Component Analysis

The AI in FMCG and retail market is segmented by components into software, hardware, and services. The software segment encompasses various AI solutions such as machine learning, natural language processing, and computer vision. These software solutions are integral to the functioning of AI systems, enabling them to analyze data, recognize patterns, and make predictions. The growing demand for AI-driven applications in customer service, inventory management, and supply chain optimization is significantly driving the software segment's growth. Companies are heavily investing in developing advanced AI algorithms and platforms to enhance their operational efficiency and customer engagement.

Hardware components include AI-specific chipsets, sensors, and other devices that facilitate the deployment of AI technologies. The increasing need for high-performance computing capabilities to process large datasets and execute complex algorithms is propelling the demand for specialized AI hardware. Innovations in hardware technologies, such as the development of AI accelerators and neuromorphic chips, are further boosting the hardware segment. These advancements enable faster and more efficient AI computations, enhancing the overall performance of AI applications in FMCG and retail sectors.

The services segment comprises consulting

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

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.

The Europe Travel Retail Market is Segmented by Retail Activity Type (Fragrances and Cosmetics, Fashion and Accessories, Jewellery and Watches, and More), by Distribution Channel (Airport, Airline, Ferries and Cruise Lines, Land-Border Shops, Downtown Duty-Free), by Country (United Kingdom, Germany, France, Andmore). The Market Forecasts are Provided in Terms of Value (USD).

In UK Retail Banking Market is projected to grow from USD 1.32 trillion in 2025 to USD 1.95 trillion by 2031, at a CAGR of 6.8%

The Supermarkets industry has undergone something of a shift over the past decade – discounters Aldi and Lidl have penetrated the customer base of the traditional “Big Four” supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), with their low prices and improving quality of products resonating with price-conscious shoppers. Over the five years through 2024-25, supermarkets' revenue is forecast to dip at a compound annual rate of 1.1% to £192.1 billion, though it's expected to inch up by 0.6% in 2024-25. Grocery price inflation has eased in 2024-25, with this stabilisation supporting consumer confidence, which has sparked greater sales volumes across major supermarket chains. Over the five years through 2024-25, the cost-of-living crisis has constrained households’ budgets, with shoppers spending less on non-essentials, shopping around more and turning to discount supermarkets. The landscape for UK supermarkets has been characterised by intense competition and emerging consumer trends. Discount retailers like Lidl and Aldi have aggressively expanded their market presence by capitalising on streamlined supply chains and low operational costs, enticing budget-conscious shoppers. Their success has prompted traditional supermarkets to embark on price wars and promotional strategies like Aldi price matches, illustrating the sector's dynamic nature. Concurrently, loyalty programmes have proven instrumental in bolstering supermarkets' profitability. Tesco, for instance, reported exponential growth in its Clubcard membership, thereby solidifying its market share. Looking forward, consumer preferences for quick and convenient shopping will threaten the traditional weekly shop. Convenience stores are likely to benefit from the little, local and often trend, stealing sales away from supermarkets. Sustainability is a growing concern for both shoppers and supermarkets. As disposable incomes recover, shoppers will emphasise sustainably produced, sourced and packaged products. Supermarkets will invest heavily in decarbonising their operations by purchasing electric fleets. However, additional costs caused by hikes to employers’ National Insurance contribution outlined in the 2024 Autumn Budget will force supermarkets to pass on additional costs to consumers, threatening their price competitiveness. Over the five years through 2029-30, supermarkets' revenue is forecast to swell at a compound annual rate of 2.1% to £213.4 billion.

Home and Garden Retailing in United Kingdom (UK) – Sector Overview, Market Size and Forecast to 2025 provides both the historic and forecast market data of total retail sales, and the home market in United Kingdom (UK). It illustrates the data with charts, graphs and tables summarizing the value, with category details in home sector. The forecasts include the impact of COVID-19 on growth. The report also reveals major retailers share in home sector with their price and market positioning in 2020. Read More

UK Retail Analytics Market growth is driven by increasingly digital and customer-centric, data analytics will be a key driver in enabling agility, personalization, and profitability across the sector.

U.K. Off Price Retail Market size is growing with a CAGR of 4.6% in the prediction period & it crosses USD 12,610.3 Mn by 2032 from USD 9,210.6 Mn in 2025

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