UK consumers’ shopping habits have undergone a change that is unlikely to be reversed. According to our latest forecast, nonecommerce retail sales will drop by 16.0% this year, followed by a recovery in 2021. However, sales will never reach pre-pandemic levels.

Ecommerce has been a bright spot among retail channels during the coronavirus, as consumers became reliant on digital transactions amid physical store closures and fear of infection.

Young consumers have led the way in terms of digital habits and consumption through the pandemic, but older age groups have been forced to catch up. Some old habits may die hard in these groups, but the digital future has definitely been hastened.

Retail ecommerce in Western Europe was already growing at a healthy clip, both in aggregate and as a share of overall retail, but we now expect that the pandemic will cause overall spending to increase much faster than anticipated. Even as overall retail declines by 9.9% in the region, we estimate that ecommerce sales will jump by 16.9% this year—well up from our pre-pandemic forecast of 8.8%.

Digital won’t be able to make up for the shortfall in ad spend in the UK's traditional channels, but it will register a small increase this year.

This report explores the latest developments in the social media landscape, including the Facebook ad boycott and new monetization opportunities from the platforms, as well as our latest forecast for social network ad revenues.

The depth and lasting impact of the global recession, along with the sharp economic downturn in the UK, signal a long and challenging road to recovery.

The pandemic is pushing more people to digital—some even for the first time—as many look to activities they may not have considered before lockdown.