The United Kingdom is a prominent retail market in Europe, featuring a substantial presence of international retailers and serving as the largest e-commerce market on the continent.
Retail
The UK boasts a rich retail heritage, offering a diverse range of businesses, from well-known global brands to small artisanal enterprises. The retail sector in the UK has shown resilience, achieving total sales of £403 billion in 2020. The country continues to support the industry directly and has established numerous retail technology networks. Given the sector’s size and diversity, the UK presents a wide array of market opportunities for retail companies looking to establish a presence in the country.
Opportunity highlights
The UK’s substantial retail market offers several investment opportunities:
High-End Shopping
The UK attracts some of the world’s wealthiest shoppers, with an average spend of over £29,000 in UK stores. The country is the second most popular destination for elite shoppers globally, accounting for 31% of this market. This strength makes the UK an exciting location for high-end retail services.
Mobile Retailing
The UK boasts the largest mobile retail sector in Europe, with 43% of retail transactions occurring via smartphones and tablets. Mobile retail is the fastest-growing segment of the retail sector in the UK, providing opportunities for companies and innovators to tap into the existing market and leverage the UK’s skilled talent.
Sustainable Fashion
The fashion industry contributes up to 10% of global carbon emissions. With a goal of achieving net-zero emissions by 2050, the UK is changing its consumption patterns to become more sustainable. Initiatives like Sustainable Fashion Week (SFW) aim to empower and upskill the community for a more sustainable approach to fashion, offering events, hubs, and marketplaces to showcase sustainable products.
Support for Startups
The UK supports early-stage companies through various institutions, including British Patient Capital, a £2.5 billion investment vehicle aimed at increasing patient capital availability for high-growth businesses. True, Europe’s only retail and consumer investment and innovation firm, invests in future-fit businesses, anticipating evolving retail, consumer, and leisure behaviors.
Tech Capability
The UK is a global leader in fintech, which provides many of the skills needed in the retail technology sector. With over 76,500 people currently employed in fintech, this number is expected to grow to 105,500 by 2030. UK tech companies are using AI and data analytics to enhance efficiency, customer satisfaction, and support within the retail sector.
Commercial maturity
The UK’s retail sector is substantial, employing nearly 3 million people, making it the country’s largest private sector employer. London is home to prestigious shopping areas, including Oxford Street and Mayfair, and hosts high-end retailers such as Tiffany and Co and Burberry. The UK captures a 31% share of this market.
The UK is at the forefront of e-commerce and retail technology, with over £92 billion generated in online sales in 2021, the highest in Europe. The government actively supports these endeavors through the Department for International Trade (DIT), assisting UK-based companies in expanding into emerging markets.
UK assets
The UK boasts a range of valuable resources and assets in the retail sector, including:
UK Export Finance (UKEF)
UKEF is the UK’s export credit agency, offering attractive financing terms to overseas buyers and supporting working capital loans for UK companies to help them win export contracts. From 2016 to 2021, UKEF provided £18.5 billion in support for UK exports.
Digital Commerce Team at DIT
The Department for International Trade (DIT) has a specialized team of digital trade experts who offer market entry guidance and facilitate connections within the digital ecosystem.
Infrastructural Connectivity
The UK government is committed to enhancing infrastructure to accommodate ongoing growth. The National Infrastructure Strategy has allocated £100 billion to improve transport system connectivity and contribute to the government’s goal of achieving net-zero emissions by 2050.
Retail Technology Testbeds
The UK features various retail technology testbeds, including the UK Digital Retail Innovation Centre. This national center focuses on testing and developing disruptive innovations such as holographic virtual employees, artificial intelligence (AI), 3D scanning and printing of products, and drone deliveries.
R&D capability
The UK Fashion and Textile Association (UKFT) and the Future Fashion Factory collaborate on a £5.4 million R&D partnership. This initiative focuses on the exploration and development of new digital and advanced textile technologies aimed at enhancing the design of high-value creative products.
UKFT is at the forefront of innovation in sustainability, working with partners like IBM, Tech Data, and the Future Fashion Factory to create, prototype, and pilot a new technology platform. This platform will empower the British fashion and textile industry to promote sustainability and profitability by increasing transparency within the supply chain.
Business and government support
The COVID-19 pandemic significantly accelerated shifts in consumer behavior towards e-commerce. The UK government has responded by assisting British businesses in adapting to the world of online retail through various programs. The UK Export Academy offers industry-specific webinars, masterclasses, and virtual missions. Seasoned exporters can utilize DIT’s free sector faculties, which provide valuable insights to help UK companies operate effectively in international markets and sectors.
Additionally, businesses can tap into the resources of retail technology networks. One example is JLAB, an accelerator program designed for startups and established businesses capable of offering disruptive retail solutions. Participants in JLAB have the opportunity to become part of the supply chain for well-known brands like John Lewis and Waitrose.
Other Sectors
Explore diverse sectors across the UK where you can invest and enhance your business or ideas.
Space
The UK’s space sector is fast growing, globally competitive, and increasingly important to all parts of our economy, national security, and everyday life.
Sports Economy
The UK has an excellent sporting reputation – one that’s underpinned by the presence of several huge sports brands and an unrivalled experience of delivering global sporting events.
Sustainable infrastructure
Sustainable infrastructure is vital to the acceleration of the global clean growth and climate resilience agenda – the UK is at the forefront of new technologies and approaches.