The retail sector is constantly evolving. Not only are economic factors such as inflation influential, but technological advancements and the resulting shifts in consumer behavior are also shaping the retail landscape across Europe.
Fluctuations in the supply chain can hinder retail growth in certain regions, while positive developments, such as infrastructure expansion, can boost the sector.
The Good News First:
The European retail sector is expected to grow at a compound annual growth rate (CAGR) of 3.4% between 2025 and 2028. This growth will be driven by declining inflation and increasing interest in e-commerce.
In this article, we explore the most significant retail forecasts for Europe in 2025 and address key questions, such as:
- Which sectors will experience the most growth?
- Which country will remain the retail leader in Europe?
- How will trends and technology shape the future of retail?
Looking Back at 2024 and Ahead to 2025
The quarterly “European Retail Review for 3Q / 2024” by Research and Markets provides comprehensive market research on various sectors of the European retail industry. It serves as both a retrospective analysis and a foundation for informed future projections.
The report evaluates consumer behavior across multiple countries and analyzes economic factors that have influenced—and will continue to influence—the retail sector. This article draws on several statistics from the report.
The key markets covered include: Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, the Netherlands, Norway, Poland, Portugal, Ireland, Romania, Slovakia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Which Retail Sector Will See the Strongest Growth in Europe in 2025?
According to the European Retail Review, the food market will be the fastest-growing retail sector, with a market share of 51.2%.
Simultaneously, growing interest in health and beauty is driving moderate growth in the Wellness & Beauty segment, with a CAGR of 4.4%, making it a solid investment opportunity.
Which Retail Sector Will Decline in Europe in 2025?
The clothing and footwear sector continues to experience a decline in growth. Economic uncertainty is prompting consumers to cut back on non-essential purchases.
Which European Country Will Remain the Retail Leader in 2025?
Germany is expected to maintain its leadership in the European retail sector, thanks to its robust infrastructure and expanding e-commerce market.
The electronics market, in particular, is dominated by Germany, driven by strong online demand and supported by numerous e-commerce platforms.
The United Kingdom leads in sales for watches & jewelry, print media, and sports equipment.
Which Country Will Have the Strongest Retail Growth in Europe in 2025?
Bulgaria is projected to achieve the strongest retail growth, with a CAGR of 12.6%, fueled by rising consumer demand and rapid sector expansion.
Romania will see the fastest growth in the beauty and health market, with an expected CAGR of 10%.
In contrast, more mature markets like Germany and France will experience slower growth rates.
Which Country Will Have the Slowest Retail Growth in Europe in 2025?
Ireland is expected to record the slowest growth in the retail sector, as geopolitical tensions delay the export of goods.
However, there is an uptick in the household goods sector, as consumers regain confidence in their personal finances.
Which Countries Will Dominate the Clothing Industry in Europe in 2025?
Germany continues to dominate the clothing industry, thanks to its strong economy, even though economic growth in the country is stagnating. Germany remains one of the world’s four largest economies.
The United Kingdom is the second-largest clothing market in Europe, with strong domestic brands like Primark and Next ensuring economic stability.
Which Country Expects the Highest Growth Rate in Sales in 2025?
Hungary is experiencing the sharpest decline in inflation in Europe. According to JLL’s European Retail Market Outlook, retail sales are expected to grow by 4% in 2025.
What Increase in Rents Is Expected in Prime Locations in the European Retail Sector?
London, Paris, and Berlin led the way in 2024 with the highest number of new store openings in popular hotspots, followed closely by Madrid, Barcelona, and Milan.
The United Kingdom currently has the highest percentage of leased retail outlets in Europe (24.7%), followed by Germany (22.5%) and France (11%). The remaining 42% is distributed across other European countries.
According to JLL’s forecast, rents are expected to rise at a CAGR of 1.8% for high-street shopping locations and 3.9% for shopping centers in Europe.
What Impact Will E-Commerce Have on Retail in Europe in 2025?
E-commerce has seen steady growth in recent years and will continue to expand. Sales in e-commerce stores are expected to grow at a 8% CAGR, with platforms like Amazon, eBay, Vinted, and Etsy gaining popularity.
By 2029, online purchases are projected to account for 15% of total retail sales (JLL).
Consumers are leveraging technological advancements by comparing prices online before making purchases, whether offline or online.
Who Are the Leading European Retailers in 2025?
Leading companies in European retail include well-known brands such as:
Puma, Adidas, LVMH, Carrefour, Pepco, Casino Guichard-Perrachon SA, Kering, ASDA, Burberry, Morrisons, Just Eat, Aldi, Miniso, REWE, Clas Ohlson, Mango, H&M, Greggs, Sosandar, Marks & Spencer, House of Fraser, Wickes, Currys, JD Sports, ASOS, John Lewis, and Shoprite.
Conclusion: Sescom—Your Facility Management Partner in the Retail Sector
Despite rising rents and cautious consumer spending, the European retail sector is poised for growth in 2025. The strongest markets remain the UK, Germany, and France, while significant opportunities also lie in Romania and Bulgaria.
The food market currently generates the highest turnover, while the health and beauty sector promises solid growth.
If you’re looking for a technical facility management partner to provide high-quality, reliable support for your stores across Europe, look no further! We offer a full range of services, from HVAC installations to store openings and closures, strip-outs, refits, pop-up stores, maintenance, RFID implementation, and more.
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