Online retail growth has regained momentum, with real-terms sales rising by 2.7% in 2025, to 27% of retail sales. The market splits fairly evenly between pure-players and store-based retailers, highlighting…
UK
eCommerce
simple
UK Online Retailing: The Purchase Journey 2026
"Online purchase journeys are becoming more fragmented, but consumers still want to make simple, confident decisions. Retailers that bridge that gap will be best placed to grow."
Michael Oliver, Senior Retail Analyst
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EXECUTIVE SUMMARY
What you need to know
Outlook for online retailing
Opportunities
Help shoppers buy with confidence to increase purchase frequency and loyalty
Capture external demand to drive more efficient customer acquisition
Use loyalty benefits at the point of purchase to reduce price sensitivity and drive retention
THE MARKET
Snapshot – market size and forecast
Market factors
Economic pressure and consumer confidence
Legal change is pushing retailers towards more transparent journeys
De Minimis changes have potential to level the playing field but cannot come soon enough
AI is redefining digital visibility
Social is becoming a discovery layer in the online journey
Market size
Online share increasing steadily after post-pandemic correction, with gradual rebuild underway
Continued growth has implications for store estates of omnichannel retailers
Online retail growth accelerates to 6.1% in 2025, driven by real-terms recovery
Graph 1: online retail sales including VAT and annual percentage change in sales, 2021-26
Physical presence continues to pay off online
Online-only retailers regain momentum through value leadership and AI investment
Graph 2: distribution of online retailing sales, by type of retailer, 2019-26
Online retail sales set to hit £180 billion by 2031
Graph 3: market size and forecast for all online retail sales (including VAT), 2021-31
Investment across the purchase journey will sustain online retail growth
Online food edges upwards as digital grocery gains traction
Graph 4: online retailing sales by broad segment, 2019-26
THE CONSUMER
The purchase journey is becoming more fragmented
Retailers pack more punch than brands, ads and influencers
Retailers have less control over where journeys begin
Younger shoppers are expanding the purchase journey across more touchpoints
Graph 5: sources of inspiration for online purchases, by generation, 2026
Drive visibility across fragmented discovery journeys to win shopper attention
AI is a new entry point, but not yet a trusted decision maker
The AI trust gap – consumers use AI for discovery but resist commercial influence
Graph 6: attitudes towards AI tools, by age, 2026
Consumers welcome decision support, but remain wary of commercial influence
Graph 7: AI tools as inspiration vs purchase decision, 2026
Prioritise AI in complex categories to drive higher purchase influence
Graph 8: influence of AI recommendation by product category bought, 2026
Prepare for a shift from AI influence to AI-assisted purchasing
Trust is becoming a shortcut through online complexity
Familiarity is winning the online trust race
Use trust signals to simplify choice and win shoppers faster
Graph 9: share of online shoppers agreeing with selected trust-related statements, 2026
Leverage retailer credibility to drive adoption of emerging brands
Turn overwhelming choice into confident purchases
Where value fits in the purchase journey
Lead with value to win purchase decisions
Tailor fulfilment options to deliver greater value across income groups
Graph 10: value-related factors influencing choice of where to buy, by household income, 2026
Turn loyalty and warranties into decision drivers, not post-purchase rewards
The growing influence of social in the purchase journey
Product discovery increasingly starts on social platforms
Creators spark demand among young shoppers
Turn creator-driven interest into confident brand trial
Use social commerce to capture demand at the point of inspiration
Convert externally generated demand into sales
RETAILER ACTIVITY
Retailer online penetration
Amazon and other pureplays continue to have the broadest reach
Amazon dominates but Temu and Shein are taking increasing shares
Graph 11: online penetration of leading online-only retailers, 2026
Store-based retailers compete through trust, convenience and omnichannel strengths
Graph 12: online penetration of leading online-only retailers, 2026
Graph 13: leading non-food online retailers’ market shares of all online retail sales, 2024/25 and 2025/26
Amazon drives unrivalled shopping frequency and engagement
INNOVATION AND MARKETING
Launch activity and innovation
AI discovery becomes the new online shopfront
Agentic commerce moves from theory to retailer strategy
Marketplaces evolve into curated retail ecosystems
Social commerce becomes a mainstream online retail channel
APPENDIX
Report scope
The market
Forecast methodology
Forecast methodology – fan chart
Market size and forecast of online retailing
Market forecast and prediction intervals
Supplementary data: leading online retailers
Online retailers: revenues
Online retailers: market shares
The consumer
Consumer research questions
Consumer research methodology
UK generation groups
Other data source methodologies
Snoop SpendMapper methodology
Abbreviations and terms
Abbreviations
Online retail growth has regained momentum, with real-terms sales rising by 2.7% in 2025, to 27% of retail sales. The market splits fairly evenly between pure-players and store-based retailers, highlighting how consumers are increasingly channel agnostic and prioritising convenience over retailer type.
The online purchase journey is becoming more fragmented as shoppers move between retailer websites, social platforms, reviews, digital tools and creator content. Discovery is no longer controlled by search engines alone, creating a major shift in how retailers win visibility and influence decisions. AI is emerging as a new point of discovery, while social media is playing a growing role in generating demand.
The biggest opportunity is to reduce complexity and support confident decisions. Trust is becoming a decision-making shortcut, with 84% of online shoppers typically sticking to retailers or brands they already know. Retailers that simplify choice, demonstrate value clearly and provide reassurance throughout the journey will be best placed to win both trial and conversion.
The biggest threat comes from rising competitive intensity. Low-cost online challengers such as Temu and Shein continue to reset expectations around price and value (although forthcoming legislative changes may blunt this advantage), while consumers are discovering products through a growing mix of social, creator and AI-led touchpoints.
This Report Looks at the Following Areas:
How AI search, assistants and agentic commerce are transforming the visibility and influence of brands and retailers online.
The fragmentation of discovery across retail, marketplace, social and creator-led platforms, creating a new battleground for attention.
Competitive shifts between pure-plays, omnichannel leaders and aggressive low-cost entrants.
The increasing importance of trust signals (eg reviews, product verification, retailer endorsement) in making complexity manageable for consumers.
Evolving loyalty, fulfilment and warranty levers that redefine perceptions of value in an evolving online landscape.
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