Revealed: 40% of UK shoppers do not fully understand how retailers use their data

As the battle for consumer loyalty intensifies, personalisation has become one of retail’s most powerful tools, but also one of its most misconstrued.  

Consumers’ trust hinges on a thorough understanding of how their data is being used. Retail Week’s latest research study reveals how 2,000 shoppers across Europe’s biggest markets (the UK, France and Germany) perceive personalisation, what they now expect in return for sharing their data, and how much they trust retailers – especially when AI is in play. You can read the full report here.

The data shows that retailers must not assume consumers inherently understand personalisation mechanics – especially when data sharing is involved.

The report also explores what encourages consumers to part with their data across regions, from discounts and special offers through to shipping perks and enhanced product recommendations, with statistics on how the types of data that shoppers are willing to share differ from market to market.  

The striking impact of age demographics is also explored within the study, alongside action points for retailers looking to boost engagement through personalised services.

Retailers leading the charge on personalisation: Zalando  Retailers leading the charge on personalisation: Zalando  Retailers leading the charge on personalisation: Zalando  Retailers leading the charge on personalisation: Zalando  Retailers leading the charge on personalisation: Zalando

The study found that 85% of German consumers would be willing to share some form of personal data with retailers, to enhance their shopping experiences, the highest percentage across the three markets investigated.  

And this engagement with personalised services is paying dividends for Germany’s retailers.  

German online retailer Zalando, one of Europe’s leading online fashion platforms, offers a standout example of AI-powered personalisation. The Berlin-based retailer uses machine learning algorithms to power its ‘Algorithmic Fashion Companion’ (AFC) – a service offering customers relevant product recommendations based on their past purchases, browsing behaviour and style choices. Human stylists provide adjustments to AFC to be sure its recommendations follow current fashion trends. 

AI also drives dynamic outfit recommendations and predictive sizing tools, helping the retailer reduce returns – one of the biggest costs keeping retailers up at night, particularly in fashion.  

Zalando claims that outfit recommendations drive 40% larger basket sizes and twice as high conversion rates compared to single items.  

In May 2025, Zalando reported a 7.9% rise in revenue over the first quarter, noting a new record high of 52.4 million active shoppers on its platform, up 2.9 million year on year.