Retail 2026

At a glance

After years of navigating an unforgiving macroeconomic landscape, UK retailers are heading into 2026 with cautious optimism and a renewed sense of strategic clarity.

While challenges persist – ranging from persistent inflation and regulatory burdens to geopolitical instability and consumer unpredictability – there is growing confidence among the nation’s retail leaders that the tide may be turning.

This report is based on interviews conducted by Retail Week journalists between May and July 2025 with 45 UK retail leaders. It captures the evolving sentiment, priorities and predictions that will shape the industry in the year ahead. The executives we spoke to represent a cross-section of sectors, formats and business models, offering a compelling snapshot of how the industry is preparing for both volatility and opportunity.

At the heart of their outlook is a sharper focus on transformation. Whether through technology, international expansion, operational efficiency or investment in people, 2026 is seen by many as a pivotal year – a chance to reset strategies and lay the groundwork for more resilient, customer-led growth.

But this optimism is tempered by realism. Planning cycles are shortening, cost pressures remain intense, and the external environment is anything but predictable. Retailers are being forced to operate with agility and foresight, balancing short-term gains with long-term vision.

This report unpacks the strategies retailers are deploying, their critical investments and the cultural shifts defining UK retail’s next chapter.

Among the most compelling insights from this year’s research:

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85%

of retail leaders expect their total sales to grow in 2026, with nearly a quarter (24%) forecasting much higher sales – up from 13% in the 2025 edition of this report

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16%

of retail leaders now plan five years ahead, down from 32% just three years ago, as uncertainty forces a pivot to shorter-term planning

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34%

rate their organisation’s AI capability between six and 10 (with 10 being most capable), up from 24% last year

Chapter 1

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Chapter 2

Chapter 3

Chapter 4

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Chapter 5

Conclusion

Partner viewpoint

Mark Thomson, retail industry director EMEA, Zebra Technologies

Retail continues to be a challenging yet exciting place to work. Our ever ageing population poses challenges in terms of labour availability, but at the same time will inevitably create opportunities to target this growing older cohort.

Increasing wage costs mean that retailers are doubling down on ways to improve productivity and it’s no surprise that AI is starting to look like a part of the solution in that area.

Shrink has also been a major talking point this year as theft and staff abuse have risen significantly. Caring for the colleagues who serve us in this industry should remain a high priority for retailers as we see technology being a way to augment staff rather than replace them.

In all these areas we are happy to work alongside retailers to make work better every day.

The 45 retailers that took part

Our sincere thanks to the leaders who generously gave their valuable time to be interviewed for this report, both on and off the record. These 45 retail leaders were interviewed by Retail Week journalists between May and July 2025