Savills – European Retail Market, 2025

The report analyzes the European retail market outlook up to 2025, focusing on retail formats, demographic influences, investment trends, and market dynamics.

Retail formats are evolving with omnichannel strategies and hybrid store concepts emphasizing experience and flexibility. Value retail, including discounters like Aldi and Lidl, is gaining prominence as affordability becomes a key consumer driver. Smaller gateway markets beyond major cities are becoming more attractive for international brands due to growing visitor reach and lower entry barriers. Prime retail assets in gateway cities continue to outperform secondary locations, which face higher vacancies. The development pipeline is drying up, leading to a focus on optimizing existing retail space. Demographic trends such as migration, ageing populations, income growth, and urban concentration are reshaping retail demand. Retail investment is regaining momentum with stable yields and some compression. The retail market is experiencing a fragile recovery with elevated savings and a gradual return to consumer spending.