New research reveals what’s keeping retail execs awake at night…

Cyber and data security is now the biggest risk facing UK retailers, according to new research from Barclays and Retail Economics.

Some 64% of retail leaders ranked cyber and data security among their top three risks for the year ahead (up from 58% last year), while 29% identified it as their single greatest threat – ahead of financial, operational and strategic risks.

The report also highlights growing concern around the impact of AI on retail. Nearly eight in ten (78%) retail leaders said AI is already changing how consumers discover and search for products, with many expecting traditional channels to become less important as AI-powered recommendations increasingly influence purchasing decisions.

Richard Lim, CEO of Retail Economics, said the retail risk landscape had become “far more complex”, with cyber security, AI, supply chain disruption and geopolitical uncertainty all creating new challenges for businesses operating on tight margins.

The research also found that UK retailers are facing growing competitive pressure from ultra-low-cost international marketplaces such as Temu and Shein. Almost half (49%) of UK consumers have purchased from these platforms in the past year, spending an estimated £4.7 Billion annually.

The platforms now account for around 5% of UK non-food online sales, adding further pressure on pricing, margins and customer expectations.

The findings are based on a survey of 129 senior retail executives and 2,000 UK consumers conducted earlier this year.