The British retail sector has experienced change over recent years due to technological, economic, and social factors. Now, Tesco Media’s We Know the Nation 2026 report has outlined the primary drivers reshaping British shops. The report pinpointed “cultural shifts, cognitive triggers, and behavioural patterns,” all of which are expected to affect retail media over the next year.
Predictably, the rapid advance of AI technology is influencing retail media, but the report, which draws on insights from Clubcard shopper activity, argues that the “focus is not on AI in isolation.”
AI is transforming the retail landscape, but it’s how companies implement and use the technology that is important to ensure it enhances customer experiences. This may be in the form of clearer choices when shopping online, streamlining shopping journeys (whether online or in-store), and developing stronger, better relationships with customers via branding.
Although technologies and methods are evolving, the fundamental goal of delivering a great customer experience remains.
The cost of living crisis continues to plague retailers and customers, so it’s value that’s highlighted by Tash Whitmey, Managing Director, Tesco Media and Insight Platform. “Value has never been so important. Combine that with the fact that shoppers now have more choice than ever, and you end up in an environment where customers are making far more intentional decisions. As a result, brands and retailers need to protect customers’ confidence just as much as their budgets.” Whitmey also said that the market is “maturing rapidly.”
Shopper behaviour evolving
Tesco Media’s report reveals two behavioural patterns among its Clubcard users. Firstly, emotions, cultural values, and social interactions are shaping how consumers live and relate to others. Then there is a cognitive evolution taking place, with shifts in people’s decision-making, how they process information, and how shoppers manage the growing number of options to choose from, a process that adds complexity to what is truly valuable.
With the two behavioural patterns, categorised as “culture” and “cognition,” Whitmey added, “Across both culture and cognition, the signals from Clubcard are clear: we live in a nation reshaping its habits and seeking balance, connection, and clarity. Do shoppers still want joy in their basket? Yes, provided it makes sense in their own situation.”
The We Know the Nation 2026 report is can help other brands understand evolving customer needs, according to Whitmey. “By bringing data science and creativity together, we can make sense of this unpredictability and help brands show up in ways that feel timely, useful, and human.”
(Image source: “Supermarkets in Panama” by thinkpanama is licensed under CC BY-NC 2.0.)
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