United Kingdom (UK) Online Retail Market Size, Segment Analysis, Drivers and Constraints, Trends and Forecast to 2027

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Explore actionable market insights from the following data in our United Kingdom (UK) Online Retail Market’ report:

  • A comprehensive insight and analysis of the online channel in the UK.
  • Analyzing the main trends and hot issues shaping the market in the UK.
  • Market forecast for 2027 across key retail sectors (Clothing & Footwear, Food & Grocery, Electricals, Furniture & Floorcoverings, Health & Beauty, Homewares, Entertainment, DIY & Gardening, Books, and Others).
  • Major players (Amazon, Tesco, Waterstones, Marks & Spencer, Screwfix, Argos, IKEA, The Body Shop, Currys, ASDA, and Sainsbury’s) as well as consumer shopping behavior.

How is the ‘UK Online Retail Market’ report different from other reports in the market?

Businesses need to have a deeper understanding of the market dynamics to gain a competitive edge in the coming decade. Get the report today for valuable insights that will help you to make strategic decisions.

  • Growth of different sectors online and the issues affecting the online market to ensure you capitalize on high-growth areas such as click & collect and third-party pickup in each sector.
  • Understand why and how consumers shop online for different products to capitalize on the growth in the online market.
  • Explore which retailers have the most popular online propositions in each sector, enabling you to better compete with market leaders and enhance your own online propositions.

We recommend this valuable source of information to anyone involved in:

  • Startups/Suppliers/White-label manufacturers
  • Retail and Consumer Good Companies
  • Luxury Store Suppliers/Retailers
  • Strategy/Innovation and Business Development
  • Market Intelligence and Portfolio Managers
  • Government Agencies/Health Associations

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UK Online Retail Market Report Overview

The United Kingdom (UK) online retail market size was GBP 83.6 billion in 2022. The performance of online pureplays is expected to improve over the next five years driven by early investment in online technology. Yet, online pureplays and multichannel retailers alike must invest further in online platforms, including colour-matching tools within the beauty sector, or room planning for retailers within the home sector sphere, to retain appeal. This is expected to drive the UK online retail market to witness a CAGR of over 4% during 2022-2027.

The UK online retailing market research report offers comprehensive insight and analysis of the online channel in the UK, the main trends and hot issues, major players, and consumer shopping behavior. It also provides forecasts for 2027 across key retail sectors.

UK Online Retail Market Overview 2022-2027, (GBP Billion)

UK Online Retail Market Overview 2022-2027, (GBP Billion)

For more insights on the UK online retail market forecast, download a free sample report

UK Online Retail Market Drivers and Trends

The key UK online retail market drivers include increased ease of usage, convenience for consumers, and more accessibility of integrated technology. The ease of online shopping has increased since the pandemic. Shoppers who switched to shopping online during the pandemic are more likely to continue shopping online in the future due to the convenience and choice it offers. In addition, value retailers and discounters are improving their online offers, giving consumers the option to trade down on big-ticket items, as well as clothing and footwear.

The key trends likely to proliferate the UK online retail market growth are flexible working and delivery schedules, returns in clothing & footwear, and increased mobile device usage in older shoppers. Hybrid working became the norm for many consumers in 2022. As a result, many consumers will try to arrange delivery slots for online orders based on their hybrid working schedule. This means that offering flexibility on delivery options is key for retailers, as it enables consumers to ensure they are home to receive their deliveries. In addition, consumers are spending increasing amounts of time on social media, resulting in the platforms becoming shopping channels. Consumers can scroll through their social media feeds and click on links promoted through ads or influencers’ commission links, taking them directly to retailer websites.

For more insights on the UK online retail market dynamics, download a free sample report

UK Online Retail Market Segmentation by Sectors

The key sectors in the UK online retail market are clothing & footwear, food & grocery, electricals, furniture & floorcoverings, health & beauty, homewares, entertainment, DIY & gardening, books, and others. In 2022, the clothing & footwear segment accounted for the highest revenue. However, food & grocery, DIY & gardening, and health & beauty offer the biggest growth potential in the online channel, with these sectors forecast to grow the most between 2022 and 2027.

UK Online Retail Market Analysis by Sectors, 2022 (%)

UK Online Retail Market Analysis by Sectors, 2022 (%)

For more insights on the sectors of the UK online retail market, download a free sample report

UK Online Retail Market Segmentation by Fulfilment Method

The key fulfilment methods in the UK online retail market are third-party pickup, click & collect, and home delivery & digital. In 2022, the home delivery & digital fulfilment method dominated the UK online retail market growth. The growth was driven mainly due to the growth in hybrid working culture among consumers post the pandemic.

UK Online Retail Market Analysis by Fulfilment Method, 2022 (%)

UK Online Retail Market Analysis by Fulfilment Method, 2022 (%)

For more insights on the fulfilment method of the UK online retail market, download a free sample report

UK Online Retail Market – Competitive Landscape

Some of the key retailers in the UK online retail market are Amazon, Tesco, Waterstones, Marks & Spencer, Screwfix, Argos, IKEA, The Body Shop, Currys, ASDA, and Sainsbury’s among others.

UK Online Retail Market – Consumer Attitudes

The key consumers in the UK online retail market are segmented into males and females. In 2022, females dominated the consumer penetration share.  In terms of consumer age groups, consumers between the age group 25-34 led the UK online retail market in 2022. The rise of cheap fast-fashion brands and social media have undoubtedly contributed to the rise in fashion purchases made online as apps such as TikTok and Instagram allow consumers to immediately buy clothing seen on their social media feeds.

To know more about leading retailers and consumer attitudes in the UK online retail market, download a free sample report

UK Online Retail Market Overview

Market Size (2022) GBP 83.6 billion
CAGR (2022-2027) >4%
Historical Period 2017-2021
Forecast Period 2022-2027
Key Sectors Clothing & Footwear, Food & Grocery, Electricals, Furniture & Floorcoverings, Health & Beauty, Homewares, Entertainment, DIY & Gardening, Books, and Others
Key Fulfilment Methods Third-Party Pickup, Click & Collect, and Home Delivery & Digital
Key Retailers Amazon, Tesco, Waterstones, Marks & Spencer, Screwfix, Argos, IKEA, The Body Shop, Currys, ASDA, and Sainsbury’s

Key Segments Covered in this Report

UK Online Retail Market Sector Outlook (Value, GBP Million, 2017-2027)

  • Clothing & Footwear
  • Food & Grocery
  • Electricals
  • Furniture & Floorcoverings
  • Health & Beauty
  • Homewares
  • Entertainment
  • DIY & Gardening
  • Books
  • Others

UK Online Retail Market Fulfilment Method Outlook (Value, GBP Million, 2017-2027)

  • Third-Party Pickup
  • Click & Collect
  • Home Delivery & Digital
Aldi
Amazon
Amazon Fresh
AO
Apple
Argos
ASDA
ASOS
Audible
B&Q
Beelivery
Book Depository
Boots
Currys
Deliveroo
DFS
Dunelm
Facebook
Fancy
GAME
Getir
Google
GoPuff
Gorillas
H&M
Holland & Barrett
Home Bargains
Homebase
Hotel Chocolat
Iceland
IKEA
Instagram
iTunes
Jiffy
John Lewis & Partners
Laithwaites
Lidl
Lookfantastic
Marks & Spencer
Matalan
Microsoft
Milk & More
Moonpig
Morrisons
New Look
Next
Nike
Nintendo
Oak Furniture Land
Ocado
Playstation
Sainsbury's
Screwfix
Sky
Sports Direct
Steam
Superdrug
Tesco
The Body Shop
The Book People
The Range
The Works
TikTok
Toolstation
Twitter
Uber Eats
Very
Waitrose & Partners
Waterstones
Wayfair
WH Smith
Wickes
Wilko
YouTube
Zara

Table of Contents

  • 1 Executive Summary
  • 2 Key Trends in the UK Online Market

    • 2.1 Drivers & Inhibitors
    • 2.2 Key Trends

  • 3 UK Online Market 2022-2027

    • 3.1 Market size and forecasts
    • 3.2 Sector performance and forecasts
    • 3.3 Click & collect by sector
    • 3.4 Third-party pickup by sector
    • 3.5 Returns by sector

  • 4 Competitive Landscape

    • 4.1 Retailer usage

  • 5 Consumers

    • 5.1 Penetration & profile
    • 5.2 Penetration by sector
    • 5.3 Drivers of online shopping
    • 5.4 Device penetration
    • 5.5 Returns methods
    • 5.6 Social media usage
    • 5.7 Location of online purchases
    • 5.8 Online shopping functions (future usage)
    • 5.9 First time usage by sector
    • 5.10 Rapid delivery services usage
    • 5.11 Delivery preferences
    • 5.12 Expected online spend

  • 6 Methodology & contacts

Table

UK Online Market Sector Value and Forecast, 2017, 2022 & 2027

UK Click & Collect Sector Sales, 2017, 2022 & 2027

UK Third-Party Pickup Sector Sales, 2017, 2022 & 2027

UK Online Returns Market by Sector, 2022 2025

Online Shopping Drivers % by demographic, 2022

Rapid delivery services usage by demographic, 2022

Figures

Usage of various delivery timeframes, 2022

Online returns for all sectors, 2021 and 2022

Mobile device profile by age %, 2021 and 2022

UK Online Market GBPm, 2017, 2022 & 2027

UK Online Market Value GBPm, 2017-2027

UK Online Market Annual Growth %, 2017-2027

UK Online Growth vs Total Retail Growth, 2017-2027

UK Online Share of Total Retail %, 2017-2027

UK Online Non-Food Share of Non-Food Retail %, 2017-2027

UK Fulfilment Method Share of Online Retail %, 2017, 2022 & 2027

UK Online Sector Growth %, 2022-2027

UK Online Market by Sector %, 2017-2027

UK Online Sector Penetration %, 2022

UK Online Books Market Value GBPm, 2017-2027

UK Online Books Market Annual Growth vs Total Online Growth %, 2017-2027

UK Books Share of Total Online Market %, 2017-2027

UK Books Online Share of Sector %, 2017-2027

UK Books Market Growth by Channel, 2022-2027

UK Online Clothing & Footwear Market Value GBPm, 2017-2027

UK Online Clothing & Footwear Market Annual Growth vs Total Online Growth %, 2017-2027

UK Clothing & Footwear Share of Total Online Market %, 2017-2027

UK Clothing & Footwear Online Share of Sector %, 2017-2027

UK Clothing & Footwear Market Growth by Channel, 2022-2027

UK Online DIY& Gardening Market Value GBPm, 2017-2027

UK Online DIY& Gardening Market Annual Growth vs Total Online Growth %, 2017-2027

UK DIY& Gardening Share of Total Online Market %, 2017-2027

UK DIY& Gardening Online Share of Sector %, 2017-2027

UK DIY& Gardening Market Growth by Channel, 2022-2027

UK Online Electricals Market Value GBPm, 2017-2027

UK Online Electricals Market Annual Growth vs Total Online Growth %, 2017-2027

UK Electricals Share of Total Online Market %, 2017-2027

UK Electricals Online Share of Sector %, 2017-2027

UK Electricals Market Growth by Channel, 2022-2027

UK Online Entertainment Market Value GBPm, 2017-2027

UK Online Entertainment Market Annual Growth vs Total Online Growth %, 2017-2027

UK Entertainment Share of Total Online Market %, 2017-2027

UK Entertainment Online Share of Sector %, 2017-2027

UK Entertainment Market Growth by Channel, 2022-2027

UK Online Food & Grocery Market Value GBPm, 2017-2027

UK Online Food & Grocery Market Annual Growth vs Total Online Growth %, 2017-2027

UK Food & Grocery Share of Total Online Market %, 2017-2027

UK Food & Grocery Online Share of Sector %, 2017-2027

UK Food & Grocery Market Growth by Channel, 2022-2027

UK Online Furniture & Floorcoverings Market Value GBPm, 2017-2027

UK Online Furniture & Floorcoverings Market Annual Growth vs Total Online Growth %, 2017-2027

UK Furniture & Floorcoverings Share of Total Online Market %, 2017-2027

UK Furniture & Floorcoverings Online Share of Sector %, 2017-2027

UK Furniture & Floorcoverings Market Growth by Channel, 2022-2027

UK Online Health & Beauty Market Value GBPm, 2017-2027

UK Online Health & Beauty Market Annual Growth vs Total Online Growth %, 2017-2027

UK Health & Beauty Share of Total Online Market %, 2017-2027

UK Health & Beauty Online Share of Sector %, 2017-2027

UK Health & Beauty Market Growth by Channel, 2022-2027

UK Online Homewares Market Value GBPm, 2017-2027

UK Online Homewares Market Annual Growth vs Total Online Growth %, 2017-2027

UK Homewares Share of Total Online Market %, 2017-2027

UK Homewares Online Share of Sector %, 2017-2027

UK Homewares Market Growth by Channel, 2022-2027

Top 10 Books Retailers %, 2022

Top 10 Clothing & Footwear Retailers %, 2022

Top 10 DIY & Gardening Retailers %, 2022

Top 10 Electricals Retailers %, 2022

Top 10 Food & Grocery (weekly or regular shop) Retailers %, 2022

Top 10 Food & Grocery (gift food) Retailers %, 2022

Top 10 Furniture & Floorcoverings Retailers %, 2022

Top 10 Health & Beauty Retailers %, 2022

Top 10 Homewares Retailers %, 2022

Top 10 Music & Video Retailers %, 2022

Top 10 Video & Computer Games Retailers %, 2022

UK Online Shopper Penetration %, 2022

UK Online Shopper Penetration %, 2021

UK Online Shopper Profile %, 2022

UK Online Shopper Profile %, 2021

UK Online Books Shopper Penetration %, 2022

UK Online Books Shopper Penetration %, 2021

UK Online Clothing & Footwear Shopper Penetration %, 2022

UK Online Clothing & Footwear Shopper Penetration %, 2021

UK Online DIY & Gardening Shopper Penetration %, 2022

UK Online DIY & Gardening Shopper Penetration %, 2021

UK Online Electricals Shopper Penetration %, 2022

UK Online Electricals Shopper Penetration %, 2021

UK Online Entertainment Shopper Penetration %, 2022

UK Online Entertainment Shopper Penetration %, 2021

UK Online Food & Grocery: Weekly or Regular Shop Shopper Penetration %, 2022

UK Online Food & Grocery: Weekly or Regular Shop Shopper Penetration %, 2021

UK Online Furniture & Floorcoverings Shopper Penetration %, 2022

UK Online Furniture & Floorcoverings Shopper Penetration %, 2021

UK Online Health & Beauty Shopper Penetration %, 2022

UK Online Health & Beauty Shopper Penetration %, 2021

UK Online Homewares Shopper Penetration %, 2022

UK Online Homewares Shopper Penetration %, 2021

Online Shopping Drivers %, 2022

Device Penetration %, 2018-2022

Device Penetration by Demographics %, 2022

Online Returns Method Usage %, 2018-2022

Drivers of Online Clothing & Footwear Returns %, 2020-2022

Social Media Penetration %, 2022

Location of Online Purchases, 2020, 2021, 2022

Technology in online shopping usage, 2022

Financial services usage, 2022

Online shopping functions usage, 2022

Rapid delivery services usage, 2022

Delivery preferences, 2022

Delivery methods future usage, 2022

Expected spend online by sector %, 2022

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