Retail Risk Outlook 2026
Key trends, insights and actions in 2026 and beyond
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The risks are clear. The question is readiness.
"In 2026, UK retailers face a uniquely challenging environment. Persistent cost pressures, shifting consumer behaviour, geopolitical uncertainty, and complex operations are testing even the most resilient players."
Perran Jervis
Head of Retail and Consumer Goods
Watch highlights from the report
Emily Rhodes, Senior Associate in our Competition, Regulatory and Trade team, introduces this year’s Retail Risk Outlook.
Five regulatory priorities for 2026
This list highlights the five regulatory developments expected to have the greatest impact on UK retailers over the year ahead, setting out what is changing, why it matters and where businesses should focus their attention now.
Pricing update
What's changing?
Regulators are cracking down on misleading pricing tactics (e.g. drip fees, fake “was/now” discounts, unclear subscription terms).
What retailers should do now
Audit all pricing and promotions for transparency – remove hidden fees, ensure discounts are genuine and clearly explained.
Business rates
What's changing?
Permanent business rate relief for retail/hospitality starts April 2026 (lower multipliers for sites <£500k RV; new higher rate for sites ≥£500k).
What retailers should do now
Review your store rateable values – identify which locations get the new relief vs. high-value surcharge; appeal any over-valuations and adjust leasing plans/budgets accordingly.
Employment Rights Act 2025
What's changing?
Phased reforms to redundancy, equality and union rights to 2027,higher admin and dispute risk.
What retailers should do now
Update workforce policies and practice, track consultations and plan for cost and process impact. Update workforce policies and practice, track consultations and plan for cost and process impact.
AI governance
What's changing?
No new AI law yet, but UK regulators (ICO, CMA etc.) expect responsible AI use – with strong focus on fairness, transparency and accountability in automated decisions.
What retailers should do now
Develop an AI governance framework – implement bias checks, human oversight and clear policies for any AI tools and Incorporate protections in core contracts affected by AI.
DMCC update
What's changing?
CMA gains direct powers to investigate and fine; faster, tougher enforcement.
What retailers should do now
Review pricing, promotions and subscriptions, update terms where necessary and strengthen consumer compliance governance.
Get in touch
Insights & events
Infrastructure Planning Blog 51: A veritable fountain of infrastructure planning news
UK Regulatory Initiatives Grid – May 2026: what financial services firms need to know now
London Luton Airport expansion finally cleared for take-off?
HMT’s policy statement on Consumer Credit Act 1974 reform: Insights for a future-ready consumer credit regime
New operational incident reporting rules for banks and CRR firms: What you need to do before March 2027
New FCA operational incident reporting rules: What core or limited SMCR firms need to do now
New FCA rules on operational incident reporting: What enhanced SMCR firms need to know
New operational incident reporting rules for payment service providers: What you need to do before March 2027
CDR in 10 practical points: Restrictive covenants and misuse of confidential information
Less than one month until World Cup 2026 kicks off: it's time for licensed premises to prepare
When do the UK public procurement rules apply? Public Authorities and Public Undertakings under the Procurement Act 2023
UK-India Social Security Agreement – What employers need to know ahead of Summer 2026
Consumer Duty: from frameworks to outcomes – 12 priority focus areas for regulated firms
Infrastructure Planning Blog 50: An offshore wind DCO, safeguarding transmission and the King’s Speech
When the technical advice is right but still not enough: the role of tax governance
Why work-related stress is a health and safety issue
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The Balancing Act: Regeneration beyond the contract
Energise2030: Developing energy projects for the long-term
The Balancing Act: Partnerships, trust and patient capital
ESG in Action: Inside the Government Legal Department's social mobility agenda
ESG in Action: Climate resilience in real terms: Breaking sustainability silos with Santander 
ESG in Action: Hospitality and sustainability working together for future successes
ESG in Action: Beyond returns: Inside the world of responsible investment
ESG in Action: Trailblazing with Ablaze: Helping young people succeed
ESG in Action: Power from the panels: Profit with purpose with Eden Sustainable
The Balancing Act: Setting the scene for regeneration
ESG in Action: Top-down and bottom-up momentum: The next chapter of social mobility with SMBP
ESG in Action: Balancing the basket with the British Retail Consortium
Energise2030: Grid reform, Gate 2 and what's next for connections
ESG in Action: Banking on biodiversity with Nationwide Building Society
Knocking down barriers to on-site generation: A practical guide to behind the meter solar for your business
AI in motion: Balanced algorithms - addressing bias in AI
When good tax decisions go wrong: Governance, filing positions and HMRC scrutiny
SMConnect Webinars: Practical Insight for leaders in SMCR roles
Biodiversity Net Gain: What’s changing and what it means for you
dmcc-act---the-next-chapter-for-cma-consumer-law-enforcement
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Bitesize ERA - Episode 6: Delivering change under the ERA reforms
preparing-for-the-procurement-act-2023
community-connection-and-collaboration-tlt-and-fgr
placing-sustainability-at-the-heart-of-learning
TLT advises leading developer and independent power producer on major solar and battery portfolio project financing
TLT strengthens national real estate offering with strategic partner hire trio
TLT advises CCI Global on landmark strategic merger with Startek
TLT advises award-winning accountancy firm on acquisition of Green Square
TLT advises on the sale of cloud optimisation specialists
Wellbeing at TLT – a conversation with Claire Graham, Emma Erskine-Fox and Chantal Stroker
TLT trifecta as The Legal Business Awards 2026 shortlist announced
TLT advises on strategic refinancing of BRCK Group PLC
TLT advises clean energy developer on renewable energy park investment
TLT continues to invest in Real Estate with appointment of new partner
TLT awarded Stonewall accreditation for LGBTQ+ inclusive culture
TLT shortlisted for ‘UK Firm of the Year’ at The Lawyer Awards 2026
Government and public services legal panel appointments
The Balancing Act: Regeneration beyond the contract
Energise2030: Developing energy projects for the long-term
The Balancing Act: Partnerships, trust and patient capital
ESG in Action: Inside the Government Legal Department’s social mobility agenda
ESG in Action: Climate resilience in real terms: Breaking sustainability silos with Santander
ESG in Action: Hospitality and sustainability working together for future successes
ESG in Action: Beyond returns: Inside the world of responsible investment
ESG in Action: Trailblazing with Ablaze: Helping young people succeed
ESG in Action: Power from the panels: Profit with purpose with Eden Sustainable
The Balancing Act: Setting the scene for regeneration
ESG in Action: Top-down and bottom-up momentum: The next chapter of social mobility with SMBP
ESG in Action: Balancing the basket with the British Retail Consortium
Energise2030: Grid reform, Gate 2 and what's next for connections
ESG in Action: Banking on biodiversity with Nationwide Building Society
Knocking down barriers to on-site generation: A practical guide to behind the meter solar for your business
AI in motion: Balanced algorithms - addressing bias in AI
When good tax decisions go wrong: Governance, filing positions and HMRC scrutiny - Webinar
SMConnect Webinars: Practical Insight for leaders in SMCR roles
Biodiversity Net Gain: What’s changing and what it means for you
DMCC Act - The next chapter for CMA Consumer Law Enforcement
International Fintech Case Study: Brexit Contract Migration | TLT
UK Utilities Case Study: Employment Law and Brexit Planning | TLT
TLT oversees an international acquisition of a specialised South West business
TLT advises on the £90m sale of long-standing client's business
Advising a fast-growth eCommerce consultancy on a share capital sale and reinvestment
Bitesize ERA - Episode 6: Delivering change under the ERA reforms
Preparing for the Procurement Act 2023 - construction industry focus
Community, connection and collaboration - TLT and Forest Green Rovers FC
