The UK retail landscape is characterized by the dominance of traditional supermarket chains and the rapid growth of discount retailers. According to Retail Navigator's latest rankings, the top 10 biggest retailers in the UK showcase a blend of established giants and rising stars. Leading the pack are household names like Tesco and Sainsbury's, whose efficient supply chain management and customer loyalty programs emented their positions in the market. Meanwhile, discounters such as Aldi and Lidl continue to make significant strides, driven by their low prices and unique merchandising strategies. As we look ahead to the five-year forecast for 2027/28, these rankings provide insights into the future trajectory of the UK's retail secto.
1. Tesco: £72.6bn
Tesco stands as the largest retailer in the UK, boasting an impressive sales revenue forcast of £72.6 billion. With over 4,100 stores across the UK and Republic of Ireland, Tesco's extensive reach and diverse product offerings have solidified its position at the top. In the latest financial year, Tesco saw a significant increase in sales, with UK sales alone climbing to £44.38 billion, marking an 8.1% growth. The company's total revenue for the fiscal year ending February 29, 2024, was £68.19 billion, reflecting a 3.69% growth.
2. Sainsbury's (including Argos): £38.7bn
Sainsbury's, which includes the Argos brand, is the second-largest retailer in the UK with a combined revenue forcast of £38.7 billion. The acquisition of Argos has bolstered Sainsbury's market presence, contributing to its robust financial performance. For the financial year ending March 4, 2023, Sainsbury's recorded a profit before tax of £327 million. The company continues to expand its market share, achieving record grocery market share gains and volume growth.
3. Amazon: £37.9bn
Amazon has rapidly grown to become one of the top retailers in the UK, with sales revenue forcast reaching £37.9 billion in 2023. The e-commerce giant has seen staggering sales growth over the past decade, driven by its extensive product range and efficient delivery services. In 2022, Amazon's total revenues from its UK activities were £24 billion, highlighting its significant impact on the retail landscape.
4. Asda: £29bn
Asda ranks fourth among the UK's biggest retailers, with a sales revenue forcast of £29 billion. The retailer has been investing heavily in upgrading its stores, with plans to redevelop its Park Royal Superstore in north-west London. Asda's commitment to enhancing customer experience and expanding its product offerings has contributed to its strong financial performance.
5. Aldi: £23.8bn
Aldi has made significant strides in the UK market, achieving a sales revenue forcast of £23.8 billion. Known for its cost-effective pricing strategy, Aldi has seen a remarkable sales growth of 14.9% in the twelve weeks ending October 1, 2023. The discounter has expanded its market share from 4.9% in 2015 to 9.3% in 2022, overtaking Morrisons as the fourth largest grocery store in the UK.
6. Morrisons: £21bn
Morrisons, with a sales revenue forcast of £21 billion, remains a key player in the UK retail sector. Despite facing stiff competition from other retailers, Morrisons continues to attract a loyal customer base with its focus on fresh produce and competitive pricing. The retailer's strategic initiatives and operational efficiencies have helped maintain its strong market position.
7. Marks & Spencer: £14.2bn
Marks & Spencer (M&S) has established itself as a prominent player in the UK retail market, its sales revenue is forcasted at 14.1 billion. In the financial year ending April 1, 2023, M&S achieved a record revenue of approximately £11.9 billion, marking an increase of about one billion pounds from the previous year. Founded in 1884 by Michael Marks and Thomas Spencer in Leeds, M&S currently operates 959 stores across the UK, with 615 dedicated solely to food products.
8. Lidl: £14.1bn
Lidl has rapidly grown to become one of the UK's leading discount supermarkets, with a sales revenue forcast of £14.1 billion. For the financial year ending February 28, 2023, Lidl Great Britain Limited reported a significant revenue increase of 18.8% year-on-year, reaching over £9 billion. The company opened 50 new stores during this period, attracting around 1.4 million additional customers. The retailer also maintained its position as the highest-paying supermarket in the UK, investing £50 million in increasing hourly pay rates for its employees.
9. John Lewis Partnership (including Waitrose): £12.3bn
The John Lewis Partnership, which includes both John Lewis department stores and Waitrose supermarkets, sales revenue forcast is £12.3 billion. As of 2023, the John Lewis Partnership operates a total of 363 stores in the United Kingdom. This includes 34 John Lewis shops plus one outlet, and 329 Waitrose shops. The partnership operates under an employee-owned business model, where employees, known as Partners, have a significant role in running the business and share in the annual profits.
10. Boots: £9.5bn
Boots UK, a leading health and beauty retailer, sales revenur forcast is £9.5 billion. The company operates 2,511 stores across the UK and Ireland, employing around 60,000 people. Boots is part of the Walgreens Boots Alliance, an American multinational holding company. The company remains a key player in the UK retail market, known for its extensive range of health and beauty products and services.
