UK Retail Industry

 UK Retail Industry

Retail is an exciting, dynamic and diverse industry. It is a driving force in our economy, generating £105bn of GVA in 2024, paying £33 billion in business taxes and collecting circa £60bn in VAT in 2023. The industry represents 5% of GDP. It is the UK's largest private sector employer, with three million colleagues across the UK, 9% of all UK jobs. Retailers touch the lives of millions of people every day, supporting the vibrant communities where they operate.

The industry is going through a period of profound change. Technology is changing how people shop, costs are increasing, and consumer demand is softening, all of which are creating a perfect storm that is driving structural change across the industry.

The industry is transforming and getting fit for the future. £14bn was invested in 2023, including in new technology, responding to changing customer needs. Job numbers are falling overall, with automation and AI replacing some tasks, however there will be new, higher-skilled roles in retail. 100,000 new types of jobs in retail have been created in recent years. Pay growth has outstripped the national average – 8.5% in retail vs 7% nationally in October 2024 (YoY).

Store numbers fell by 6,000 between 2018-23 but retailers are investing in new store formats, creating new experiences for their customers. Online sales made up 27.4% of all retail sales in 2025, up from 19.2% in 2019. These changes have significant implications for the industry, our economy and society. The Retail Sector Council will ask what change means for the consumer and society, and how the sector should respond.

Source: BRC data