London,29th January 2026 - Following years of reports about the decline of the UK high street, new market insights is starting to tell a different story. New year-end figures from global market intelligence firm CONTEXT show that physical retail is regaining share across Europe, with the UK among the strongest performers.

In Q4 2025, physical retail chains accounted for more than 62% of consumer technology sales across Europe’s largest economies. It is the first time since 2023 that stores have held a majority share of the market.

The UK, traditionally more reliant on online sales than many European markets, is now playing a central role in that recovery. Physical retail made up 48% of UK consumer tech sales in Q4 2025, up from 43% two years earlier. The figures suggest that much of the ground lost during the pandemic is slowly being recovered.

James Bates, Senior Retail Analyst at CONTEXT, said: “People are thinking harder about where they buy expensive technology. As devices become more complex, shoppers want to see them properly, ask questions and know who to go back to if something isn’t right. That’s bringing them back into stores.”

The shift is being driven by practical concerns rather than nostalgia. New product categories, including AI-enabled PCs and advanced productivity features, are difficult to understand through online descriptions alone. In-store demonstrations make a clear difference, particularly when buyers can see features working in real time.

Physical stores also allow customers to judge build quality and usability for themselves. For premium laptops, tablets and creative devices, weight, screen quality and input response still matter.

Delivery and returns remain another factor. For large or fragile items, buying in-store or using Click & Collect reduces risk and avoids long online support processes if something goes wrong.

Retailers have responded by reshaping stores into service-led spaces. Websites act as the starting point, while stores handle advice, collection, support and repairs.

“Stores are no longer competing with online sales”, James added. “They are supporting them. When the product is expensive or complicated, the presence of a real person still carries weight.”

As the market moves into 2026, the UK high street is not reverting to its old model. Instead, it is settling into a role built around trust, expertise and reassurance, particularly for big-ticket technology purchases.
 

About CONTEXT
CONTEXT is a B Corp certified provider of market intelligence and analytics for the global technology industry. The company works with leading manufacturers, distributors and investors to support strategic decision-making through advanced forecasting, analytics and data management. CONTEXT systems track more than £200 billion in annual technology sales transactions, supported by a global team of over 400 professionals operating in more than 35 countries.

Press contact
Funda Cizgenakad
T: +44 7876 616 246
E: Funda@contextworld.com