UK at centre of e-commerce evolution that is just beginning and being powered by AI technology

New research from Forrester reveals that e-commerce represents 16% of retail sales across France, Germany, Spain, Italy, and the UK, with total retail projected to grow 8.9% in 2025.

By 2029, online sales will dominate many categories, driven by consumers’ demand for convenience, near universal smartphone use among older demographics, and rising preference for sustainable products - setting the stage for e-commerce to reshape the global economy by 2040.

Forrester’s report details how distributed, dynamic, live, and quick commerce strategies are reshaping growth for B2C leaders as consumer eyeballs are moving to new channels. UK specific data shows 40% of consumers use social media weekly to discover products or brands, 70% want retailer sites to show in-store availability, and 46% would trust brands more if they shared real ownership experiences during early phases of research.

Meanwhile, 63% of UK online adults still buy in-store at least weekly. With stricter data policies and rising costs, UK brands are testing retail media, marketplaces, and AI to meet expectations while protecting margins. 

Key highlights:  40% of UK consumers use social weekly for product discovery, and 54% research online before purchasing in-store; 70% want in-store availability listed on retailer websites; Click and Collect remains critical in the UK - significant shares prefer local collection points - 31% at a nearby grocer, 28% at the retailer’s branch, 25% at a post office, 24% at a locker, and 22% at a convenience store. 

38% of UK online adults are willing to pay more for environmentally friendly products; 66% say when they find a brand they like, they stick with it; 33% of UK Gen Z online adults report purchasing directly from a creator/influencer post; 25% of UK Gen Z have taken part in live online shopping. 

Chuck Gahun, Principal Analyst at Forrester, says: “The UK is the centre of the e-commerce evolution that is just beginning and being powered by AI capabilities. Our data shows British consumers reward brands that deliver value, transparency, and convenience - from showing real-time store availability to enabling seamless Click and Collect.”

“Leaders should align content, commerce, and technology now to take advantage of new strategies, within boundaries of UK and EU data policies, and begin increasing conversions.” 

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

Deadline for submissions is Friday, 5th December. It’s free to enter and you can do so across multiple categories.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January.