Overview of the retail sector in the UK
Providing a livelihood to almost three million people, the retail industry never stands still. If you’d like to work in a fast-paced, dynamic sector built on responding to consumer needs then a career in retail might be for you
What is retail?
Retail is the sale of goods and services to individual consumers for personal use. Retailers buy products in large amounts from manufacturers and then sell them in smaller quantities to people for a profit.
Retailers include door-to-door salespeople, those running market stalls, shops, department stores and supermarkets, as well as internet retailers.
How many people work in retail in the UK?
According to data from the British Retail Consortium (BRC), the retail sector employed 2.84 million people in 2024, accounting for almost 10% of all jobs in the British economy, making it the largest private sector employer in the country.
Information from a House of Commons Library research briefing paper, Retail sector in the UK 2025, tells us that employment in the retail sector is fairly evenly distributed across regions of the UK, with Northern Ireland and the North East showing the highest proportion at 11% and 9.7% respectively, and London the lowest at 7.8%.
What does FMCG mean?
FMCG stands for 'fast-moving consumer goods', which are products that are sold quickly, have a high turnover rate and so need to be restocked frequently. Also known as 'convenience goods', examples include:
- food
- beverages
- over-the-counter medications
- household products
- personal care items.
Are FMCG and retail the same thing?
No, but they are interconnected. As explained, retail refers to the process of selling goods, while FMCG refers to a specific type of product characterised by high demand and low cost. FMCG products make up a significant part of the retail industry, with a number of retailers specialising in selling these goods - for example, supermarkets and brands such as Boots and Superdrug.
How much is the retail industry worth?
The retail sector's economic output was £111.8billion in 2024, which accounted for 4.5% of the UK's total economic output and this was a 1.2% increase on 2023.
In 2024, retail sales were worth £517billion.
As of February 2025, the share of all retail sales taking place over the internet is 26.5% . If you'd like to work in ecommerce, discover how to get a job in ecommerce.
Whether you're aiming for a career in a customer-facing role or a position in head office, the sector has plenty of opportunities - from dealing with day-to-day customer care and generating sales to influencing trends and making strategic business decisions.
What areas of retail can I work in?
Employment opportunities can be found in:
- buying
- customer services
- loss prevention and security
- merchandising and allocation
- online retail
- retail management
- visual merchandising
- warehouse, distribution, logistics and supply chain.
You could choose to work within a specific area of retail, such as:
- entertainment
- fashion
- food
- general merchandise
- health and beauty
- home
- sport and leisure
- technology.
With specialist skills and qualifications you could work as a:
Head office opportunities are also available in the finance, human resources (HR), marketing and IT departments of retail companies.
For examples of roles in the sector, see jobs in retail.
Who are the main graduate employers?
As of January 1 2024, there were 324,995 retail businesses in the UK. A large proportion of these were small and medium-sized enterprises (SMEs). Here’s an example of popular, large graduate employers.
Clothing retail
- H&M
- John Lewis Partnership
- Marks & Spencer (M&S)
- Matalan
- New Look
- Next
- Primark
- River Island
- TJX Europe (includes TK Maxx and HomeSense)
- Zara.
Online shopping
- Amazon
- Ao.com
- ASOS
- Boohoo
- eBay
- Missguided
- N Brown Group (includes Jacamo, JD Williams and Simply Be)
- Net-a-Porter
- The Very Group (includes Littlewoods.com and Very.co.uk).
Supermarkets
The four biggest retailers in the UK are Tesco, Sainsbury's, Walmart (Asda) and Morrisons, meaning that supermarkets dominate the industry.
Graduates can also find opportunities with:
- Argos
- Boots
- Currys
- Dunelm
- John Lewis
- Kingfisher (includes B&Q and Screwfix)
- Signet Group (includes Ernest Jones and H Samuel).
Top graduate retail employers
According to the UK300 2023/24, the top ten graduate retail employers are:
- Amazon
- Marks & Spencer
- Samsung
- Dyson
- L'Oreal
- Aldi
- Sony
- Coca-Cola
- Nestle
- Boots.
What's it like working in the retail sector?
Graduates entering the retail sector can expect:
- a varied working environment. Work settings can include local retail branches, head offices and distribution warehouses
- some of the highest graduate starting salaries, with an average of £30,000. However, some retail employers pay considerably more. For example, Aldi's Area Manager Programme pays £50,750, which rises incrementally to £95,655 after eight years
- many roles based on shift work. This can mean unsociable hours and weekend work, as retailers are often open seven days a week - some operate 24 hours a day
- part-time work and career breaks. These may be less common in head office roles
- a fast-paced, pressured work environment, which will be focused on generating sales and making a profit
- benefits such as company cars and health, pension and lifestyle packages when working in head office roles. The majority of retail workers also enjoy company discounts.
To find out more about typical salaries and working conditions in your chosen career, see job profiles.
What qualifications do I need?
Not all jobs require university qualifications but as the retail sector grows, and the demand for more highly-skilled employees increases, a degree in any discipline will stand you in good stead.
You can enter retail management, buying and merchandising without a degree and work your way up, although an undergraduate qualification will significantly improve your chances.
Business studies and retail management degrees are beneficial if you're trying to get into store manager roles, a fashion or business-related qualification will be useful for aspiring buyers, while a Bachelors in accountancy and finance, business and management, economics or maths and statistics will be useful to retail merchandisers. For visual merchandising jobs a degree in art and design may be beneficial. Find out how to get a job in buying and merchandising.
Logistics and supply chain careers are open to graduates of all degree disciplines. However, an undergraduate qualification in logistics, distribution management, transport or supply chains will give you a better chance at securing a job. Discover why you should consider a career in logistics and supply chain management.
To stand out in the competitive field of fashion retail, a fashion or textiles related degree may be useful.
To become a dispensing optician, you'll need to pass a three-year course, approved by the General Optical Council. Aspiring customer services managers will benefit from a degree in business or consumer studies.
Postgraduate study is not essential, and few employers specify the need for a Masters qualification. However, due to the competitive nature of head office roles, a postgraduate degree could help you stand out. An MBA in retail could also be useful for senior-level positions.
What skills do I need to work in the retail sector?
To impress employers you'll need to demonstrate several sought-after skills, such as:
- commercial awareness
- brand/product knowledge
- a passion for retail
- the ability to come up with innovative ideas
- creative flair for design, marketing, buying and merchandising roles
- leadership skills, if you'd like a management job
- good IT skills
- numerical and analytical skills
- good organisation and time management
- problem-solving ability
- attention to detail
- excellent customer service skills
- flexibility and adaptability
- strong communication skills
- teamworking ability and a respectful approach to colleagues.
Take a look at the skills that employers want.
How do I get a job in retail?
Full and part-time roles, as well as temporary and seasonal work, are available within the sector.
Look for retail vacancies at:
You'll usually apply for jobs online with a CV and cover letter. For temporary or seasonal work, such as Christmas jobs, it may be useful to apply speculatively.
You could also sign up for a retail recruitment agency, such as:
What about retail work experience?
You can kickstart your retail career through graduate schemes and apprenticeships but one of the best ways to get your foot in the door is via work experience.
Shop-floor experience is invaluable if you want to work in retail - it gives you an insight into how the business works and what customers want. Apply for part-time or weekend jobs to build up this kind of experience.
However, this isn't the only type of work experience on offer. A number of retail organisations run 12-month industrial placements (sandwich placements) in a variety of functions for students who's like to take some time out of their degree to gain some real-world experience. For example:
- Aldi - offers students the chance to participate in retail management, buying, supply chain, national real estate, HR and IT placements.
- Marks & Spencer - their placement in clothing and home design kicks off with a two-week stint in store, so you really get to know the business. They also offer a food technology placement.
- Morrisons - finance, manufacturing and supply chain placements are available with this supermarket chain.
- Primark - based in Dublin, placements are available in buying, merchandising, design, garment and product technology, brand and marketing, sustainability and ethics and project management.
What are the key retail challenges?
- Changing shopping habits - Online shopping is more popular in the UK than in the USA or other European countries. With social media and smartphones feeding the demand for instant gratification, the retail industry has seen a shift in shopping habits. Rather than spending their money in bricks and mortar shops, consumers are now shopping online with 'clicks'.
- Shop closures - In 2024, almost 13,500 retail stores closed their doors for good, according to research by the Centre for Retail Research. This was a 28% increase from 2023. The majority of closures (84%) involved small, independent retailers, however a number of big-name brands such as Homebase, The Body Shop and Lloyds Pharmacy also collapsed.
- Economic factors - The cost of living crisis means everyone feels the pinch. Due to inflation, everyday goods and services are more expensive than before and people are cutting back to save the pennies, which has a direct impact on retail sales.
- Cut in business rates discount - Announced in the 2024 autumn budget, from April 2025, the business rates discount was cut from 75% to 40%, causing a sharp rise in retailers' bills. Retailers will likely have to increase prices to cover the cost of these bills.
- Increasing awareness of environmental issues - The retail manufacturing industry is one of the most polluting industries on the planet, and the retail industry's contribution to these concerns has created more conscious consumers. Customers are increasingly asking if products have been responsibly sourced, if they're Fairtrade and if they can be recycled before they shop. Sustainability is important to young consumers and moving forward fashion retailers will need to take responsibility for the waste they produce.
Find out more
- Gain an insight into the retail sector.