UK Trends to Watch for 2023

A Tough Economy Will Help Progress Retail Media, Omnichannel Shopping, and Ad-Supported Media Options

The UK is facing its highest rate of inflation in more than 40 years as the combined impact of the pandemic, Brexit, and the war in Ukraine continues to push up prices across the board. With margins and sales under serious pressure, UK retailers and brands should act quickly to protect profits, maintain shopper loyalty, and make sure every penny spent on advertising counts.

Retail Media Booms as Brands and Retailers Seek to Boost Profits

Retail media offers retailers serious margins. Retail media networks (RMNs) are gaining ground as inflation-hit retailers look for ways to boost profits and capitalize on the shift to online shopping. RMNs could provide margins of between 40% and 80%, while Alvarez & Marsal forecasts that average retail margins are only 5%.

Advertisers have followed shoppers’ digital footfall. In the UK, ecommerce’s share of total retail sales is among the highest in the world. Brands want to reach their customers wherever they are, and retail media looks like an increasingly safe bet.

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Table of Contents

  1. Retail Media Booms as Brands and Retailers Seek to Boost Profits
  2. Click and Collect Is Now Essential Across Retail Sectors
  3. Inflation and Sustainability Bring Frugality to the Forefront
  1. Ad-Supported Media Will Proliferate
  2. Social/Short Video Advertising’s Appeal Skyrockets
  3. Sources
  1. Media Gallery

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Bill Fisher, and Carina Perkins


Suzy Davidkhanian
Principal Analyst, Retail & Ecommerce
Angela Kim
Senior Researcher

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