Retail in 2024: The big picture
One of the most notable trends for retail in the UK during 2024 was the shift in consumer spending patterns as inflationary pressures began to ease. While economic relief started to emerge, local consumers remained cautious, prioritising value, price transparency, and social proof when making purchases.
Value-driven shopping continues to reshape UK retail landscape
With ongoing economic uncertainty and the continued squeeze on disposable incomes, consumers in the UK have become increasingly conscious of their spending. Discounters such as Aldi and Lidl have strengthened their positions by offering lower prices, private label alternatives, and bulk buy savings, appealing to consumers looking for cost-effective solutions.
Retail e-commerce thrives on convenience and competitive pricing
Retail e-commerce in the UK continued to expand in 2024, supported by its ability to offer convenience, competitive pricing, and a seamless shopping experience. As consumers increasingly prioritise ease of access, flexible delivery options, and frictionless checkout experiences, online shopping has become an even more essential part of everyday retail habits in the local market.
What next for retail?
The outlook for retail in the UK is positive, with value sales (at constant 2024 prices) set to further rise over the forecast period. As hybrid work patterns, urbanisation, and smaller household sizes persist, convenience retailers is set to maintain steady growth over the forecast period.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in United Kingdom with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in United Kingdom, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in United Kingdom report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in United Kingdom?
- Which are the leading retailers in Retail in United Kingdom?
- How are products distributed in Retail in United Kingdom?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in United Kingdom?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in the United Kingdom
Retail in 2024: The big picture
Value-driven shopping continues to reshape UK retail landscape
Retail e-commerce thrives on convenience and competitive pricing
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Valentine’s Day
International Women’s Day
Easter
Back-to-school
Black Friday
Christmas
DISCLAIMER
Convenience Retailers in the United Kingdom
KEY DATA FINDINGS
Convenience retailers benefits from consumer demand for proximity and quick shopping trips
Convenience stores responds to inflation with private label growth and promotions
Growth of forecourt retailers boosted by food-to-go and fuel-efficient shopping
Demand for quick and easy shopping will sustain growth of convenience retailers
Expansion and format innovation set to drive competitiveness of forecourt retailers
Private label and loyalty programmes anticipated to strengthen consumer retention
Supermarkets in the United Kingdom
KEY DATA FINDINGS
Stagnant growth for supermarkets as inflation and shifting consumer behaviour challenge the channel
Competitive pressures lead to major strategic shifts among leading supermarket chains
Supermarkets chains enhance value proposition through loyalty schemes and pricing strategies
Supermarkets set to face ongoing competition from discounters and convenience retailers
Major players to focus on store network optimisation and digital transformation
Sustainability and ethical sourcing to remain key priorities for future performance
Hypermarkets in the United Kingdom
KEY DATA FINDINGS
Hypermarkets faces growth challenges amid changing consumer shopping habits and economic pressures
Leading players adapt, but market pressure increases
Investment in digitalisation and sustainability to improve competitiveness
Declines for hypermarkets over forecast period as consumers continue to favour convenience stores and discounters
Strategic expansion and digital integration anticipated to drive competitiveness
Private label and value-driven strategies expected to support positioning of hypermarkets
Discounters in the United Kingdom
KEY DATA FINDINGS
Discounters maintains double-digit growth, outperforming traditional grocery retailers
Lidl and Aldi maintain strong positive growth trajectory
Lidl’s commitment to British agriculture and food fuels growth for the discounter
Discounters set to maintain strong growth over forecast period, driven by persistent cost-conscious purchasing decisions
Aldi and Lidl to remain focused on expanding store networks to drive future growth
Lidl commits to maintaining “market leading prices” despite significant inflationary pressures
Small Local Grocers in the United Kingdom
KEY DATA FINDINGS
Further decline for small local grocers amid changing consumer preferences
Competitive landscape reflects strain on independent operators
Community-centric initiatives and niche positioning offer some relief
Further decline expected amid competitive and economic pressures
Likely increase in health and wellness-focused strategies as a resilience strategy
Differentiated performance expected across small local grocers
General Merchandise Stores in the United Kingdom
KEY DATA FINDINGS
Marginal growth for department stores despite challenging times
Variety stores experiences modest recovery following 2023’s decline
Competitive landscape shaped by targeted investments and cost management
Weak performance ahead for department stores without strategic reinvention
Variety stores expected to maintain steady growth amid ongoing economic pressures
Opportunities likely to emerge through innovation and market adaptation
Apparel and Footwear Specialists in the United Kingdom
KEY DATA FINDINGS
Marginal growth for apparel and footwear specialists driven by consumer resilience
Notable developments among leading players to enhance in-store experiences
Strong growth of pure online brands Asos and Shein limit growth of apparel and footwear specialists
Apparel and footwear specialists set for marginal decline over forecast period
Specialists likely to further invest in the in-store experience
Sustainability initiatives likely to drive long-term differentiation
Appliances and Electronics Specialists in the United Kingdom
KEY DATA FINDINGS
Weak channel performance amid changing consumer behaviour
Store transformation and strategic initiatives of Currys aim to enhance consumer experience
Sales via mobile network operators outperform traditional appliances and electronics specialists
Projected decline for appliances and electronics specialists driven by growing retail e-commerce competition
The rise of smart technology and home automation expected to drive sales
Strategic product mix expected to be vital in maximising in-store sales
Home Products Specialists in the United Kingdom
KEY DATA FINDINGS
Further sales decline for homewares and home furnishing stores
Pet shops and superstores maintains positive trajectory despite economic challenges
Mixed performances by leading home products specialists
Home improvement and gardening stores set to record stable growth over forecast period
Pet shops and superstores to continue on positive growth trajectory
Sustainability key to driving future growth of home products specialists
Health and Beauty Specialists in the United Kingdom
KEY DATA FINDINGS
Marginal growth for beauty specialists driven by selective spending and experiential shopping
Further growth for health and personal care stores driven by healthy living trend
Boots strengthens leadership through beauty expansion and enhanced healthcare services
Navigating a shifting market for beauty specialists
Health and personal care stores expected to record solid performance
Anticipated rise of value-oriented shopping across health and beauty specialists
Vending in the United Kingdom
KEY DATA FINDINGS
Changing consumer preferences helps drive vending’s strong growth in the UK
Costa Express maintains positive trajectory in 2024
Expansion of healthy vending options and technological innovation drive sales
Vending expected to record healthy growth over forecast period
Innovation and smart technology expected to fuel vending’s future growth
Health-conscious consumers will continue to push vending beyond traditional offer
Direct Selling in the United Kingdom
KEY DATA FINDINGS
Direct selling in the UK records another year of declining sales
Avon’s direct sales decline continues into 2024
Direct sellers continue to embrace social commerce as a way to achieve growth
Stagnation expected for direct selling in the UK over forecast period
Expanding beyond core categories a potential strategy to maintain relevance
Moving towards digital-first sales models can have a positive influence on direct selling’s performance
Retail E-Commerce in the United Kingdom
KEY DATA FINDINGS
Retail e-commerce maintains positive trajectory in 2024
Evolving competitive landscape of retail e-commerce in the UK
S-commerce growth fuels TikTok Shop Marketplace’s continued surge in 2024
Retail e-commerce set to remain on strong growth path over forecast period
The rise of s-commerce and m-commerce to further drive retail e-commerce growth
Conscious shopping and price-sensitivity likely to positively influence retail e-commerce over forecast period
The following categories and subcategories are included:
Retail
-
-
-
- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
-
-
-
- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
-
- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
-
- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
-
- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
-
-
- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
-
- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
-
-
- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
-
- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
-
-
-
-
-
- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
-
- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
-
- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
-
- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
-
-
-
- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
-
-
Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Retail research and analysis database.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!