Total online expenditure

Total online expenditure increased at a compound annual rate of 1.9% to reach £136.6 billion over the five years through 2026-27. The sustained growth of online sales reflects the internet's inherent convenience and accessibility, with technology playing an increasingly central role in consumer lifestyles. Ongoing improvements in delivery infrastructure, the proliferation of internet-enabled devices, and the growing penetration of broadband and mobile services have collectively reduced friction in the online purchasing journey. The expanding presence of auction sites and peer-to-peer marketplaces has further broadened the market, while the rise of social commerce and targeted online advertising continues to drive transaction volumes upward.

Growth over the period was partly shaped by the residual effects of the COVID-19 pandemic, which structurally shifted a significant portion of consumer spending online. While the initial surge has normalised, online retail's share of total retail sales has remained well above pre-pandemic levels, underpinned by the sustained preference for online channels among consumers following the pandemic.