Conclusion

As UK retailers look to 2026, one message is clear: success will favour those who can adapt at speed, invest with purpose and be relentlessly customer-focused.

This report has shown that, despite the headwinds of economic uncertainty, labour cost pressures and global instability, retailers are stepping up with forward-focused, innovative strategies.

The CEOs we interviewed are not waiting for a calm sea – they’re steering into the storm with tech-driven transformation, new growth markets, smarter planning and empowered teams.

The challenge now is execution. Many of the conditions that have defined the past few years, such as volatility, rising costs and fast-moving consumer expectations, are here to stay. But for retailers that act decisively, 2026 could be the year when key investments begin to pay off.

To that end, the next steps are clear. Retailers must prioritise agility over perfection, balance ambition with operational rigour and remain obsessed with what matters most: delivering value and experience to their customers.

Five actions for 2026 and beyond

1Accelerate digital and AI adoption: From automation to personalisation, AI is no longer optional – it’s essential for efficiency, growth and insight.

2Double down on cost control: With cost increases cited as high as 20%, strategic sourcing, automation and productivity gains are vital for protecting margins.

3Invest in people and culture: Talent development, inclusive leadership and empowered store teams are foundational to performance and resilience.

4Modernise the store estate: Physical retail remains critical. Retailers must refresh, repurpose and reimagine the store as a space for experience, fulfilment and brand-building.

5Expand internationally and wisely: Growth beyond the UK can help protect businesses when things are tough at home. But go with a plan: localisation, partnerships and flexibility will determine success.