Europe Retail Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The Europe retail market size reached around USD 8.02 Billion in 2024. The market is projected to grow at a CAGR of 5.50% between 2025 and 2034 to reach nearly USD 13.70 Billion by 2034.

Europe Retail Market Growth

In 2022, the value of e-commerce sales in Europe amounted to EUR 899 billion. Projections indicate that by 2027, online sales in the region are expected to reach EUR 1.4 trillion. As of 2023, the online B2C market achieved a turnover of 741 billion euros. Additionally, internet accessibility in Europe is notably high, with 91% of the population utilising the internet in 2023. E-commerce platforms offer consumers the ability to access a diverse range of products from any location at any time. This level of convenience has resulted in a marked transformation in consumer behaviour, leading to an increased preference for online shopping and contributing to the overall growth of the market for retail.

As per the Europe retail market analysis, European consumers frequently engage in cross-border shopping practices. The European cross-border e-commerce market was valued at 237 billion euros in 2023. Cross-border online shopping is becoming a more common practice among European consumers, reflecting a shift towards a more interconnected and competitive retail landscape. This trend not only benefits consumers by providing them with more choices and better prices but also encourages retailers to expand their reach and adapt to the evolving demands of a diverse European market.

Key Trends and Developments

Growth of the e-commerce sector, evolving consumer preferences, rapid urbanisation and infrastructural development, technological advancements, and increasing cross-border shopping are the major trends impacting the Europe retail market growth.

July 2024

Amazon established a micromobility hub in Berlin aimed at facilitating e-cargo bike deliveries, a strategic move to enhance the electrification and decarbonisation of its transportation network in Germany. The hub aims to enable the company to operate sustainable delivery methods in Germany.

March 2024

As per Europe retail market analysis, the Italian cooperative, Conad Adriatico, officially opened a new distribution centre in Grottaglie, Taranto, which is set to emerge as one of the largest logistics hubs in Southern Italy. Through the new warehouse, the company aims to manage its supply chain, foster economic growth, and ensure the supply of quality products for customers.

February 2024

EURONICS GEIE, the foremost retail group in Technical Consumer Goods within the EMEA region, entered into a strategic partnership agreement with Interdiscount, a prominent leader in the technical consumer goods market in Switzerland. Through the collaboration, the company aims to expand its presence in the Swiss market.

Growth of the E-commerce Sector

The increasing use of e-commerce platforms, driven by improvements in digital technology, is reshaping the retail landscape in Europe. The shift to online shopping, accelerated by the COVID-19 pandemic, continues to promote Europe retail market growth.

Evolving Consumer Preferences

The demand for convenient and tailored shopping experiences, and integrated omnichannel retail solutions that harmoniously blend online and offline interactions is on the rise. Additionally, retailers are allocating resources towards technologies such as artificial intelligence and big data to address these changing consumer needs.

Urbanisation and Infrastructural Development

The rise of urban centres and improved infrastructure are creating more retail opportunities, particularly in large cities. Urban consumers tend to have higher purchasing power and demand for diverse, innovative retail options.

Technological Advancements

One of the notable Europe retail market trends is the adoption of technological advancements. The incorporation of digital payment solutions, mobile applications, and augmented reality within the retail space significantly improves customer experiences and boosts sales. Additionally, the utilisation of advanced technologies in supply chain management and in-store analytics is streamlining operations and enhancing inventory management.

Increasing Cross-Border Shopping

There is a growing trend among European consumers to participate in cross-border online shopping, motivated by access to a broader selection of products and more competitive pricing from various EU nations.

Europe Retail Market Trends

The growing popularity of e-commerce platforms, propelled by advancements in digital technology, is fundamentally reshaping the retail environment in Europe. This transformation is characterised by a significant shift in consumer behaviour, as more individuals turn to online shopping for convenience, variety, and accessibility. The COVID-19 pandemic acted as a catalyst for this transition, accelerating the adoption of digital shopping solutions and prompting both consumers and retailers to adapt to a new normal, leading to Europe retail market growth.

As physical stores faced temporary closures and restrictions during the COVID-19 pandemic, many retailers were compelled to enhance their online presence and invest in e-commerce capabilities, thus impeding growth in the retail market in Europe. This shift not only allowed them to maintain sales during challenging times but also opened new avenues for growth. The integration of advanced technologies, such as artificial intelligence, machine learning, and data analytics, has further enabled retailers to personalise the shopping experience, optimise inventory management, and streamline logistics.

Europe Retail Industry Segmentation

The report titled “Europe Retail Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type:

• Food, Beverage, and Grocery
• Personal and Household Care
• Apparel, Footwear, and Accessories
• Furniture and Home Decor
• Industrial and Automotive
• Electronic and Household Appliances
• Pharmaceuticals
• Luxury Goods
• Others

Market Breakup by Distribution Channels:

• Hypermarket and Supermarket
• Convenience Stores
• Speciality Stores
• Online
• Others

Market Breakup by Country:

• Germany
• United Kingdom
• France
• Italy
• Others

Europe Retail Market Share

Based on the product type, the market is segmented into food, beverage, and grocery, personal and household care, apparel, footwear, and accessories, furniture, and home décor, industrial and automotive, electronics and household appliances, pharmaceuticals, and luxury goods, among others. The food, beverage, and grocery segment are projected to grow at a CAGR of 6.3% during the forecast period. The retail market for food, beverages, and groceries provides vital everyday items, such as fresh fruits and vegetables, packaged goods, and beverages. It meets consumer demands through various channels, including supermarkets, convenience stores, and online shopping platforms, focusing on convenience, a wide selection, and competitive pricing to enhance sales.

Leading Companies in the Europe Retail Market

Major players are focusing on the adoption of cutting-edge technologies to gain a competitive edge in the market and to improve Europe retail market outlook.

CONAD

CONAD was established in 1962 and is headquartered in Bologna, Italy. It stands as a prominent Italian supermarket cooperative, delivering an extensive selection of grocery items. The company manages a network of independently operated stores throughout Italy, ensuring that local communities have access to both affordable and high-quality products.

Unieuro SPA

Unieuro S.p.A., established in 1937, is based in Forlì, Italy. It stands as one of the largest retailers of consumer electronics and appliances in the country. The company provides a diverse selection of electronics, household appliances, and IT products, accessible through its comprehensive network of physical stores and online shopping platforms.

Amazon.com, Inc.

Amazon.com, Inc. is headquartered in Seattle, Washington, USA and was founded in 1994. The company stands as a prominent global leader in e-commerce, providing an extensive array of products, cloud computing solutions, and entertainment offerings. The company has transformed the landscape of online retail and excels in logistics, technology, and digital services on a global scale, consequently driving up the Europe retail market share.

Euronics International

Euronics International is Headquartered in Amsterdam, Netherlands and was established in 1990. Euronics International stands as a prominent electronics retail organisation with a presence throughout Europe. The group offers an extensive selection of consumer electronics, appliances, and IT products, leveraging local knowledge alongside the advantages of a global network.

Other key players in the market are Schwarz Unternehmenskommunikation GmbH & Co. KG, Zalando SE, Tesco plc, Coop, Carrefour Group, Esselunga SpA, and Auchan Retail International, among others.