The five risks retailers can’t ignore in 2026

This report is provided by BRC Associate Member, TLT.

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2026 is shaping up to be a defining year for retail. This isn’t about a single pressure point, it’s the convergence of structural change happening all at once. Rising costs. Geopolitical instability. Shifting consumer expectations. And a wave of regulatory reform landing faster, and with more impact, than many businesses are set up to absorb.

The result? A more complex, higher-stakes operating environment where reactive decision-making is no longer enough. Retailers need clarity on where risk is intensifying and where to act first.

Five risks stand out. 

1. Pricing transparency. Regulators are taking a harder line on promotions, discounts and hidden fees. What was once accepted practice is now under scrutiny and getting it wrong risks both enforcement action and customer trust.
2. Business rates reform. Changes coming into force in April 2026 will directly affect property costs, creating a sharper divide between lower- and higher-value locations. This is more than a tax change, it’s a strategic issue for store portfolios.
3. Workforce reform. The Employment Rights Act 2025 introduces wide-ranging changes to redundancy, dismissal and union rights, increasing operational complexity and risk for employers.
4. AI governance. Even without a single new AI law, expectations are clear. Retailers must demonstrate fairness, transparency and oversight in how technology is used across their operations.
5. DMCC Act. With new powers under the DMCC Act, regulators can act faster and more decisively, raising the stakes for compliance failures.

The risks are clear. The question is readiness. 

Download the full Retail Risk Outlook 2026 for a clear, forward focussed view of the regulatory and commercial issues shaping the retail sector in 2026 and beyond.