McKinsey & Company – State of Retail 2024, Europe Transition and Transformation

The report by McKinsey & Company "State of Retail 2024, Europe Transition and Transformation" explores the impact of macroeconomic headwinds on the retail sector. Over the past five years, inflation, the COVID-19 pandemic, and geopolitical tensions have significantly affected retailers’ costs and supply chains. While nominal turnover increased, adjusted growth was negative due to inflation, particularly impacting categories like furniture and DIY. The report indicates that despite slight improvements in the economic environment, volatility persists. With the eurozone showing signs of recovery, differing growth dynamics across European markets are highlighted, with some regions showing potential growth in sectors such as pet care and consumer electronics, contrasted by declines in furniture and DIY. Retailers face challenges adapting to varying consumer purchasing power across regions.