Insights
Why digital change is critical to retail growth
4 min read
The UK retail sector headed into 2026 with renewed confidence.
Growth expectations were rising, investment plans were accelerating, and leaders were focusing sharply on the digital foundations that will define their next phase of performance.
85% of retail leaders expect total sales to grow in 2026, with nearly a quarter forecasting significantly higher sales.¹
Yet confidence alone won’t sustain momentum.
Our Growth Signals report reveals that the UK’s fastest-growing companies consistently credit their success to three clear enablers:
- Fast, resilient connectivity
- Cloud-based collaboration
- Empowered, mobile teams
These businesses show what happens when digital infrastructure is treated as an engine for growth rather than a background utility.
And they also send a warning: While smaller, fast-moving firms are scaling at pace, established retailers risk falling behind if they don’t modernise.
As one founder put it, ‘Connectivity is the backbone of our innovation, competitiveness and long-term growth.’
A sector preparing for a very different outlook
- 65% report productivity losses linked to slow broadband or mobile coverage
- 77% say poor connectivity has held back growth
- 75% of firms find it difficult to hire digital or tech talent
These challenges resonate strongly in retail and many leaders are planning deeper investment in automation, richer customer experiences and more connected supply chains.
But without the right digital foundations, these ambitions stall.
Retailers also have another important priority on their agendas: security.
In 2025, 41% of UK retail organisations experienced a cybersecurity breach, with ransomware attacks rising by nearly 75% in the first quarter alone.²
Yet only 25% feel highly prepared to respond to a major attack.³
The National Cyber Security Centre has reported a 50% rise in advanced threats targeting emerging retail technologies,⁴ so it’s clear that security is no longer a brake – it’s the gateway to digital progress.
What this means for you
Our Growth Signals analysis found that the UK’s fastest-growing firms share five essential ingredients:
- Future-proofed digital networks
- Agile regulation
- Capital incentives
- AI-ready workforce
- Long-term certainty.
While fast-growing firms are scaling through smart use of connectivity and collaboration tools, established retailers have an advantage they often underestimate: scale.
The right digital foundations can turn that scale into speed, efficiency and consistent, memorable customer experiences.
You’re already operating from a place of strength. The next step is making sure your infrastructure can support what you want to achieve.
For retailers, this plays out in three immediate opportunities.
1. Raising operational performance
Fast networks, resilient mobile coverage and dependable in-store connectivity support everything from real-time inventory updates to responsive supply chain management.
The retailers investing in automation, mobile workflows and data-driven decision-making are finding that efficiency gains compound quickly.
2. Strengthening customer experience
The race for loyalty is intensifying. Customers expect interactions to be instant, consistent and personal.
Whether it’s digital checkout, tailored offers or empowered store teams, the experience depends on the quality of the network delivering it.
3. Making security a growth driver
With cyber threats rising sharply, enterprise-grade protection is essential for scaling new tools, adopting AI or extending digital experiences.
With so much to get right, a consultative partnership makes all the difference.
Turning pressure into progress
‘Retailers are navigating some of the toughest conditions in decades. Cost inflation, the rise of online and rapid shifts in customer expectations are all eroding margins.
‘But despite this, we’re seeing a sector with confidence. Leaders are embracing digital tools that automate tasks, sharpen operations and strengthen customer experience.
‘The retailers that act now will shape the future of the sector.
‘We’re here to help build tailored roadmaps that support growth and create the digital foundations your teams and customers rely on.’
Mike Ridley, Head of Retail, Virgin Media O2 Business
Want to future-proof your operations?
And be sure to explore our retail hub to see how we’re helping retailers build secure, connected and future-ready operations.
Meet Fiona Dew, our Head of Retail
Have a chat about new tech and innovations that can help you boost productivity, efficiency and customer experiences – all powered by better connectivity.
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Explore your IT challenges and goals with our experts who’ll share insight on how to build a secure, resilient digital foundation
that supports retail growth, efficiency and better customer experiences.
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