Despite high inflation, UK retail sales are performing better than expected as consumers keep spending—albeit with cuts to nonessentials. But ecommerce will lose further share in 2023 as more shoppers return to stores. To continue growing online sales in the face of a shrinking market and Amazon’s ongoing dominance, retailers and brands will need to be innovative and agile.

Key Question: What’s the outlook for UK ecommerce sales over the next five years, and where are the biggest opportunities for growth?

KEY STAT: After last year’s slump, UK ecommerce sales will dip further by 0.6% in 2023. That means ecommerce’s share of total retail sales will fall to 32.0% this year, compared with its peak of 37.6% in 2021.