Retail horizon scan

January 2026

As we enter 2026, the pace of legal and regulatory change shows no sign of slowing, and we are pleased to present this updated edition of our retail horizon scan to help you navigate the changing landscape. 

This edition reflects key developments that have occurred over the latter half of 2025 and highlights important changes coming into force in 2026. This includes the Employment Rights Act which represents the most significant overhaul of UK employment law in a generation, with key provisions including employees acquiring protection against unfair dismissal after just six months rather than two years, and the cap on compensation being completely removed. We are also expecting updates this year from the CMA's first investigations using its new enforcement powers under the Digital Markets Competition and Consumer Act (DMCCA), as well as the outcome of the UK Government's consultation on copyright and generative AI. This attracted over 11,500 responses with an overwhelming consensus against the Government's preferred option of allowing copyright works to be scraped for AI training, unless opted out.

The retail sector continues to face challenges and opportunities across multiple fronts, from enhanced consumer protection measures and sustainability requirements to immigration reforms and technological developments. Our team is here to support you in anticipating and responding to these changes and ensuring your business remains compliant and competitive. 

This horizon scanning document is intended only as a general statement of the law and no action should be taken in reliance on it without specific legal advice. 

For more information please get in touch with Sally Britton or Lewis Cohen.