UK ecommerce is entering a steady, mature phase—but there are still opportunities for growth.

After years of turbulence, UK ecommerce sales are growing again, albeit slowly. And there won’t be a significant shift over the next five years.

UK ecommerce sales have bounced back to steady growth as consumer spending remains resilient despite inflationary pressures. Most major categories will see a further shift online by 2027, bringing opportunities for ecommerce retailers.

UK retail sales are performing better than expected, with consumers still spending despite high inflation—but ecommerce will lose further share this year as shoppers continue returning to stores and cut nonessential spending.

Beauty is proving resilient to the cost-of-living crisis as shoppers splurge on premium products to boost their mood and skin health. But it won’t escape unscathed, with consumers already streamlining their beauty regimes and searching for bargains online.

Inflation in the UK is easing but remains near a 40-year high. That’s tamping down consumer spending across all categories—with total retail sales set to grow by just 1.7% in 2023, versus a pre-pandemic growth rate of around 4%.