According to recent analyses, high street shop prices in the United Kingdom during ********* generally decreased, especially for non-food items. Compared to *********, non-food prices at shops fell by ***********, while food prices overall dropped slightly with *** percent change. The fall in fresh food prices was sharper at *** percent.

As is the case elsewhere in the world, UK saw great increases in consumer trips to retail stores in March to due to the current coronavirus (Covid-19) pandemic. For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Fact and Figures page.

In March 2025, the inflation rate for food prices in the United Kingdom was measured at three percent. A period of continuous deflation between March 2015 and January 2017 preceded a return to a sustained rise in the cost of food from February 2017 onwards. While food prices were deflating between September 2020 and July 2021, they started increasing rapidly from August 2021 to March 2023. The inflation rate started to decline from April 2023. Inflation rate and consumer price indexInflation is commonly measured via the consumer price index, which illustrates changes to prices paid by consumers for a representative basket of goods and services. An annualized percentage change in the price index constitutes a measure of inflation. In order to maintain an inflation rate at a stable level, to enable the general public and businesses to plan their spending, the Government set a two percent inflation target for the Bank of England. The discounter boom The increase in food prices in the United Kingdom has shifted shopping behaviours amongst consumers. Value is now key and shoppers are changing their retailer loyalties. Aldi, the German discount supermarket retailer, overtook Morrisons as Great Britain's fourth largest supermarket in September of 2022. Aldi's market share reached double digits for the first time in April 2023. It is yet to be seen if Lidl, Aldi's discounter competitor, can also continue to rise up in the ranks and eventually take over Morrisons as the fifth leading food retailer.

According to a June 2022 global survey, most e-shoppers reported rising prices for groceries being an issue while online shopping. Nearly ** percent of shoppers in Brazil stated that increased food prices influenced their shopping behavior, while South Korea had the second-highest number of respondents reporting the issue, at ** percent.

Online food market Worldwide, China is home to the largest online food delivery market by revenue. In 2022, China's online food delivery market was valued at roughly *** billion U.S. dollars. The online food delivery market in the United States ranked second, with almost *** billion U.S. dollars in revenue. The United Kingdom (UK) and India were among the leading countries, with ** billion and ** billion U.S. dollars, respectively. While China leads in revenue, online food delivery penetration is the highest in the UK. In 2022, almost three-quarters of UK shoppers purchased meals via the internet, whereas only slightly more than half of Chinese consumers had done the same.

Inflation hits grocery prices The impact of inflation on food prices can be seen throughout the world. In the United States, it has adversely affected online grocery since June 2021. For instance, year-on-year inflation for groceries stood at **** percent in October 2022. Consumers in the UK are the most worried about rising food prices. In November 2022, eight out of ten UK shoppers expected grocery prices to rise further in the following months. In Europe, shoppers are changing their grocery purchasing habits due to inflation. Half of Europeans are trying private-label brands, and ** percent are straying from their go-to brand. As a result of inflation, ** percent are now shifting away from brick-and-mortar stores to online grocery shopping.

According to recent figures, shop prices in the United Kingdom (UK) during August 2022 increased by *** percent on a year-on-year basis, the highest rate over the period in consideration. Currently, inflation stands at *** percent in the UK.

UK department stores face mounting pressure amid weak household incomes, high inflation, and shifting consumer habits. Sales of luxury goods have declined as middle-income shoppers rein in discretionary spending, while the loss of tax-free shopping for tourists has dented international sales. High-profile closures highlight sector fragility. However, innovation is driving survival. Retailers like M&S and John Lewis are thriving by offering high-quality and affordable goods. The rise of eco-conscious consumers is pushing stores to embrace sustainability through resale, rental, and repair services. Beauty departments have benefited from the “lipstick effect,” with prestige fragrance sales soaring despite broader spending cutbacks. Independent department stores are enjoying a revival, capitalising on strong community ties and unique, experience-led offerings. The sector’s future hinges on blending heritage with modern convenience, sustainability, and experiential value to attract the next generation of UK shoppers. Over the five years through 2024-25, department stores' revenue is forecast to drop at a compound annual rate of 5.7% to £31.6 billion, including a 0.9% dip in 2024-25. Over the five years through 2029-30, department stores' revenue is forecast to grow at a compound annual rate of 2.1% to reach £42.6 billion. UK department stores face rising cost pressures, with the April 2025 National Living Wage increase and higher National Insurance contributions squeezing margins. Some, like M&S and John Lewis, aim to absorb these costs through supply chain efficiencies rather than raising prices, but many retailers may resort to staff cuts or automation. Online rivals continue to dominate, forcing department stores to upgrade digital experiences. Cart abandonment, delivery delays, and forced account creation remain key friction points. To compete, retailers are investing in loyalty schemes and personalisation, with experiential rewards and tailored promotions proving effective. Physical stores remain vital—especially for shoppers who value experience. Successful department stores now focus on immersive, multi-channel strategies, blending heritage, innovation, and convenience to retain relevance in a fast-changing retail landscape.

Over the five years through 2025-26, industry revenue is expected to decline at a compound annual rate of 3.3% to £23.8 billion. The post-pandemic unwinding has been sharp, with online grocery orders falling from their lockdown highs as consumers return to physical stores. Meanwhile, aggressive pricing from discounters like Lidl and Aldi has pressured full-service grocers to match value, often through margin-eroding tactics like loyalty pricing, discounting and delivery subsidies. Demand for online grocery hasn’t disappeared – far from it – but it has normalised, and the cost of fulfilment remains high. Supermarkets continue to struggle with thin margins as the price of labour, fuel and delivery infrastructure weighs heavily on profit. In 2025-26, revenue is expected to rise modestly by 1.7%, reflecting a more stable consumer backdrop and slower inflation, particularly in food categories. Retailers have continued investing in automation and fulfilment innovations – from robotic picking systems to hyperlocal delivery hubs. Still, many of these upgrades are capital-intensive and have yet to ease the industry’s cost burden fully, but price sensitivity remains high. While loyalty schemes and one-hour delivery services help retain customers, they also demand substantial ongoing investment, limiting any meaningful recovery in profitability. Looking ahead, revenue is forecast to climb at a compound annual rate of 2.5% over the five years through 2030-31 to £26.8 billion. Growth will likely remain tepid as household budgets stay under pressure and the market becomes increasingly saturated. Major companies will likely consolidate their lead by expanding automation, refining logistics and bundling services through apps and loyalty platforms. Still, with delivery speed expectations rising and margins staying thin, grocers must carefully balance convenience with cost discipline to remain competitive.

United Kingdom Shop Price Expectation: Change: Median: Next 12 Mths data was reported at 3.200 % in Nov 2018. This records an increase from the previous number of 3.000 % for Aug 2018. United Kingdom Shop Price Expectation: Change: Median: Next 12 Mths data is updated quarterly, averaging 2.500 % from Nov 1999 (Median) to Nov 2018, with 77 observations. The data reached an all-time high of 4.400 % in Aug 2008 and a record low of 1.500 % in Nov 1999. United Kingdom Shop Price Expectation: Change: Median: Next 12 Mths data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.I050: Inflation Attitude Survey: Bank of England, GfK NOP.

The average for 2021 based on 165 countries was 105.854 index points. The highest value was in South Korea: 208.84 index points and the lowest value was in India: 58.17 index points. The indicator is available from 2017 to 2021. Below is a chart for all countries where data are available.

Cost of food in the United Kingdom increased 4.50 percent in June of 2025 over the same month in the previous year. This dataset provides the latest reported value for - United Kingdom Food Inflation - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

ZARA UK Fashion Dataset offers an extensive collection of fashion product data from ZARA's UK online store, providing a detailed overview of available items. This dataset is valuable for analyzing the European fashion retail market, particularly in the UK, and includes fields such as product titles, URLs, SKUs, MPNs, brands, prices, currency, images, breadcrumbs, country, availability, unique IDs, and timestamps for when the data was scraped.

Key Features:

• Product Details: Includes title, URL, SKU (Stock Keeping Unit), MPN (Manufacturer Part Number), and brand for each product, helping to uniquely identify and differentiate items.
• Pricing Information: Features the price of each product along with the currency used (GBP) to understand the pricing strategies of ZARA in the UK market.
• Visual Data: High-quality images of each product, essential for visual merchandising analysis and online consumer behavior studies.
• Categorical Information: Breadcrumbs data provide context on the product's placement within ZARA's website structure, helping to analyze navigation and product hierarchy.
• Geographical Focus: Specific to the UK market, making it relevant for studies on British fashion retail and consumer trends.
• Availability Status: Includes real-time availability data, which is crucial for understanding stock levels, popular products, and restocking practices.
• Unique Identifiers: Each product is tagged with a uniq_id, ensuring data integrity and making it easier to track and analyze over time.
• Data Collection Timestamp: The scraped_at field records the exact time and date when the data was collected, aiding in time-based analysis of inventory and pricing.

Potential Use Cases:

• Market Research: Analyze UK and European fashion trends, consumer preferences, and competitive positioning within the fast fashion sector.
• E-commerce Analysis: Study ZARA's product placement, pricing, and availability to optimize online retail strategies.
• Stock Management: Use SKU and availability data to predict inventory needs and enhance supply chain efficiency.
• Brand Analysis: Examine the impact of brand identity on consumer choices and product performance in the UK market.
• Academic Research: Ideal for research projects focused on fashion retail, marketing strategies, and consumer behavior in Europe.

Data Sources:

The data is meticulously collected from ZARA's official UK website and other reliable retail databases, reflecting the latest product offerings and market dynamics specific to the UK and European fashion markets.

• ZARA US Retail Products Dataset: Explore over 10,000 product records from ZARA's USA online store, including titles, prices, images, and availability.
  
  
• Fashion Products Dataset from GAP.com: Access detailed product information from GAP's online store, featuring over 4,500 fashion items with attributes like price, brand, color, reviews, and images.
  
  
• Myntra Fashion Products Dataset: A comprehensive dataset from Myntra.com, offering over 12,000 fashion products with detailed attributes for in-depth analysis.

Grocery markets' performance is sensitive to the level of household disposable income, health consciousness, environmental awareness and competition from other grocery retailers like supermarkets. Health consciousness and environmental awareness are ever-growing, with individuals more concerned about the provenance of their food. Organic, sustainable and local products are growing in popularity and boosting revenue as consumers are happy to pay a premium for higher-quality goods with traceable production. Grocery markets experienced a 45-year high in food price inflation in 2023, with similar rises in the cost of domestic and imported food inputs, placing significant pressure on stall operators' purchase costs. Local councils, faced with tight budgets, raised the price of pitch rents, adding to the operational costs of stall operators. A combination of these two things and depressed purchasing power among shoppers led to a drop in sales volumes. In 2024-25, revenue is forecast to grow by 0.4%, supported by growth in consumer confidence. Over the five years through 2024-25, industry-wide revenue is anticipated to grow at a compound annual rate of 8.3% to £370.8 million, supported by growing spend on premium products like artisan bread and organic meats, as real wages recover. Looking forward, supermarket competition will continue to rise. Grocery markets must find innovative ways to boost their competitiveness by improving the shopping experience, like subscription-type models, speedy delivery or personalised services and expanding the product range. Grocery markets' revenue is forecast to grow at a compound annual rate of 9.7% to reach £589.1 million over the five years through 2029-30.

Sainsbury's is a major UK supermarket chain known for its wide variety of products and services, including groceries, clothing, home goods, electronics, and even financial and mobile services. Sainsbury's focuses on offering high-quality food at competitive prices, catering to different budgets with various store formats and convenient online shopping options. Sainsbury's also provides additional services like pharmacies and petrol stations, and rewards customer loyalty through its Nectar program. Overall, Sainsbury's combines quality, value, and convenience to serve as a one-stop shop for customers' diverse needs. You can download the complete list of key information about Sainsbury's locations, contact details, services offered, and geographical coordinates, beneficial for various applications like store locators, business analysis, and targeted marketing. The Sainsbury's data you can download includes:

Identification & Location:


  store_number and store_name uniquely identify the store.

  address, address_line_2, city, state, zip_code, and country_code pinpoint its physical location.

  latitude and longitude give precise geographical coordinates.

  county and state provide broader regional information.

  country specifies the country where the store is located 


Contact Information:


  phone_number is the general store contact number


Operational Details & Services:


  store_hours lists the store's operating hours.

  store_type categorizes the store (e.g., supermarket, pharmacy, etc.)

  petrol_station indicates if the store has a petrol/gas station on-site

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Physical Security Market In Retail Sector Size 2024-2028

The physical security market in retail sector size is forecast to increase by USD 4.83 billion at a CAGR of 6.78% between 2023 and 2028. The physical security market in the retail sector is witnessing significant growth due to the rising number of security incidents, including theft and vandalism. To mitigate these risks, retailers are increasingly adopting advanced security technologies such as video surveillance, biometrics, and artificial intelligence (AI). Video surveillance, including CCTV cameras, is a critical component of retail security, providing real-time monitoring and evidence for investigations. Biometric technologies, such as face recognition, offer enhanced security by allowing for more accurate identification of individuals. The Internet of Things (IoT) is also playing a role in retail security, enabling the integration of various security systems and providing real-time data for analysis.

However, the high cost of physical security solutions remains a challenge for smaller retailers. Critical infrastructure protection is another concern, as retail stores often house valuable inventory and customer data. Overall, the market is expected to continue growing as retailers seek to enhance their security capabilities and protect against evolving threats.

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The retail sector is a critical infrastructure, requiring strong physical security measures to protect against security incidents such as theft and vandalism. Traditional security methods like CCTV cameras and perimeter intrusion detection have evolved with advanced technologies. Video surveillance now includes IP-based cameras offering ultra-high definition and remote monitoring capabilities. Biometrics, including face recognition and contactless access control, offer more secure and convenient access. Artificial Intelligence (AI) and Internet of Things (IoT) integration enable real-time threat detection and response. Security budgets for large and medium enterprises continue to grow, focusing on smart city initiatives and resource safety.

However, high initial costs and privacy concerns are challenges. Strategic alliances with technology providers offer cost-effective solutions and system integration. Temperature screening and autonomous robots are emerging trends, enhancing safety in transportation and retail environments. Cloud computing solutions provide scalability and flexibility, enabling real-time data access and analysis. Security incidents can lead to significant losses and damage to reputation. Investing in advanced physical security technologies and strategic partnerships is essential for retailers to protect their assets and maintain customer trust.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Hardware and software
  Services


End-user

  Large enterprises
  SMEs


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Type Insights

The hardware and software segment is estimated to witness significant growth during the forecast period. The physical security market in the retail sector is critical for safeguarding assets, improving operational efficiency, and ensuring employee and customer safety. The hardware and software segments of this market offer advanced technologies and solutions, including contactless access control and temperature screening, to create a comprehensive security ecosystem. In the hardware segment, high-definition cameras, network video recorders (NVRs), and video management systems (VMS) are utilized to monitor retail premises, aisles, entry points, and vital areas in real-time. Remote monitoring capabilities enable security teams to respond promptly to potential threats. However, high initial costs and privacy concerns may hinder market growth.

Furthermore, smart city initiatives are driving the adoption of advanced physical security technologies. Major players in the market include. These companies provide hardware and software solutions to retailers to address their unique security needs.

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The hardware and software segment was valued at USD 9.05 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Snapshot img

Cashmere Clothing Market Size 2024-2028

The cashmere clothing market size is forecast to increase by USD 682.3 million at a CAGR of 4.36% between 2023 and 2028. The market is experiencing significant growth, particularly in the segment of men's cashmere polos. Consumer preferences for fashionable clothing made from luxurious materials, such as cashmere, continue to drive sales. Online sales are also on the rise, as consumers increasingly turn to e-commerce platforms for convenience and access to a wider selection of innovative designs. Fashion influencers play a crucial role in shaping consumer trends, promoting cashmere clothing as a desirable and fashionable choice. However, the high price point of cashmere clothing remains a challenge for some consumers. To remain competitive, retailers must focus on providing excellent customer service and implementing effective marketing strategies to justify the investment in cashmere apparel.

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The market is a significant segment within the luxury wool industry, characterized by its production of high-quality fibers and the creation of stylish, comfortable, and fashionable garments. Cashmere production cost involves raising cashmere goats, which are primarily found in specific regions, and harvesting their soft undercoats to produce the coveted fibers. Cashmere garments, including sweaters, scarves, and cardigans, have gained popularity in the winter wear category due to their warmth, softness, and comfort. The fashion industry's focus on eco-consciousness and sustainability has led to increased demand for cashmere apparel that adheres to these principles. The growing popularity of vintage clothing and upcycled clothing, including high-end cashmere apparel, is further fueled by celebrity endorsements, driving sustainability and fashion trends in the industry.

Further, vintage, upcycled, and recycled cashmere clothing have emerged as popular choices in recent times. These items offer a unique blend of sustainability and style, appealing to consumers who value both fashion and the environment. Casual wear and workplace attire are also significant markets for cashmere apparel, with the trend towards casualization driving growth in the former and the need for professional yet comfortable clothing fueling demand in the latter. Standardization in cashmere fiber production is crucial for maintaining the quality and consistency of cashmere garments. Luxury brands have been at the forefront of this process, ensuring that their products meet the highest standards of quality and style.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Distribution Channel

  Offline
  Online


Product

  Sweater and coats
  Shirt and t-shirt
  Bottom wear
  Others


Geography

  Europe

    UK
    France
    Italy


  North America

    US


  APAC

    China


  Middle East and Africa



  South America

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period. The market experienced significant growth in 2023, with the offline distribution channel holding the largest market share. This segment's dominance can be attributed to the tangible shopping experience it offers consumers. Cashmere, a luxury wool, is a popular choice for winter wear, and consumers often prefer to see, touch, and try on cashmere garments before making a purchase.

Brick-and-mortar stores, which include standalone boutiques, department stores, and specialized retailers, are the backbone of the offline distribution channel. Eco-consciousness and sustainability are increasingly important factors in fashion choices, and consumers value the ability to inspect the quality and origin of cashmere products in person. The offline channel's continued success underscores the importance of providing a personalized and shopping experience. Vintage cashmere clothing is also gaining popularity, adding to the offline channel's appeal.

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The offline segment accounted for USD 2.42 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European region dominates The market due to its large consumer base and appreciation for cashmere's luxurious qualities. Countries like the UK, Italy, and Germany are major contributors to this gr

In the first quarter of 2025, London West End - Bond Street was the most expensive location for prime high street rents in the UK, with prices reaching 2,500 British pounds per square foot. The West End was ranked ahead of London City, which came in third. In Manchester, the annual costs of rental per square foot of prime retail real estate amounted to 235 British pounds. Retail warehouses Retail warehouses typically range from 50,000 to hundreds of thousands of square feet. They are used for keeping and distributing inventory. Retail warehouses include loading docks, truck doors and large parking lots; also, they may contain a limited amount of office space. Prime retail warehouse properties belong to the wider category of industrial property, along with other real estate types, such as distribution buildings, showroom facilities, manufacturing buildings, cold storage facilities, telecom or data hosting centers, "flex" buildings denoting more than one industrial or commercial facility housed in the same building, and finally R&D buildings. Prime yields of high street retail across Europe Retail real estate prime yields in Europe were the lowest in Zurich, Switzerland, and the highest in Bucharest, Romania in 2025. As could be expected, larger cities in Europe tended to produce lower yields, due to the lower risk associated with these markets. Locations with lower yields tend to have steady occupancy rates and rental growth.

The size of the UK Indoor LED Lighting market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 9.87% during the forecast period.It is known as light-emitting diode or LED technology applied for lighting in interior spaces. They are not the same as conventional lighting products, including incandescent or fluorescent lamps. LEDs save energy, last longer, and are also eco-friendly. They exist with various color temperatures and illuminance levels, and therefore it is possible to have tailored lighting solutions for every indoor space. Indoor LED lighting in the UK has recently grown at a tremendous pace. Improved knowledge about LED lighting has, in turn, ensured that the energy efficiency and sustainability are maximized in their applications. As a result, in all sectors of human life - residential, commercial, and industrial - use of LED lightings is becoming an imperative: achieving all-around lighting with the proper saving of energy and improving ambiance. Quite predominantly, places like offices, shops, and hotels are using LEDs hugely to reduce their consumption of electricity while simultaneously improving the quality of lighting together with ambiance. Apart from this, industrial uses will also enjoy their strength and reliability in adverse conditions. Further, the effort of the UK government for saving energy and sustainability has played a pivotal role in upgrading the use of LED lighting. Over time, technology is coming forward every day, and hence, LED lighting solutions are becoming cheap along with versatility to go with numerous applications in the UK market. Recent developments include: April 2023: Luminaire LED, a recognized leader in vandal-resistant lighting systems, announced the launch of its Vandal Resistant Downlight (VRDL) line, the company's first downlight. The architecturally designed series has a clean, elegant style while also being able to withstand hard abuse and demanding situations.March 2023: Aculux, a precision luminaire manufacturer, has announced improvements to its AXE series, its highest-performing family of architectural recessed downlights that feature industry-leading cut-off and glare control to produce quiet ceilings.January 2023: Juno displayed RetroBasicsTM LED Trim Kits, which contain both switchable and smart downlights to mix and match in residential and light commercial settings, at the NAHB International Builders Show (IBS) in Acuity Brands Booth W2974 from January 31 to February 2.. Key drivers for this market are: High demand for LED lighting in the outdoor lighting segment driven by smart development initiatives, Increasing awareness among households on LED and favorable government regulations​; Steady reduction in the prices of LED lighting products and higher shelf life ​. Potential restraints include: High Initial Cost of Installations. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

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 has stabilised at 2.7% in April 2025, 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. Sales reached €352 billion in 2024. 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 alone, revenue is expected to grow at 0.9% to €2 trillion while profit is expected to reach 5.2%, a minor drop from 5.6% in 2022 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 €3 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 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. To boost efficiency and margins, supermarkets are accelerating investment in automation and AI. 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.

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.

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.

The Consumer Price Index of the United Kingdom was 138.5 in the second quarter of 2025, indicating that consumer prices have increased by 38.5 percent when compared with the first quarter of 2015. As of June 2025, the inflation rate for the CPI was 3.6 percent, an uptick from March, when prices were rising by 2.6 percent. A long period of elevated inflation between 2021 and 2023 peaked in October 2022 and saw prices increase by over 20 percent in just three years. Uptick in inflation expected in 2025 In late 2024, the UK's main economic forecaster, the Office for Budget Responsibility, predicted that the annual inflation rate for 2025 would average out at around 2.6 percent. In March 2025, however, the OBR revised this figure upward, with annual inflation now expected to be 3.2 percent. This uptick in inflation is predicted to peak in the third quarter of the year at 3.7 percent before falling to two percent by the second quarter of 2026. Although this period of higher inflation is predicted to be far less severe than in 2022, it will no doubt put further pressure on households already struggling with their cost of living. Cost of living woes continue The share of UK households reporting that their cost of living was increasing has been steadily rising since Summer 2024. At that time, less than half of UK households reported rising costs, down from 91 percent two years earlier. As of March 2025, however, 59 percent of households said their costs were rising, the highest figure since 2023. Of these households, 93 percent reported that their food shop was increasing, with three quarters of them reporting higher energy costs. With higher inflation predicted in 2025, the pressure on UK households will likely continue, although a crisis on the scale of 2021-2023 will hopefully be avoided.