The retail industry in Europe was one of the highest and most important industries, accounting for 11.5% of EU value added and employing nearly 30 million people. After severe disruptions caused by COVID-19 and the Russia-Ukraine war, the sector has shown signs of recovery. Retail sales in the EU grew by 1.0% year-on-year in August 2024, with non-food products up 1.7%, although foot traffic in physical stores remains below pre-pandemic levels. Overall, the European retail market expanded by around 5% in 2024, led by retail parks and experiential shopping centers, while vacancy rates declined across most asset types, signaling resilience despite inflationary pressures.

E-commerce continues to reshape the retail landscape. Online sales accounted for 16% of total retail sales in Europe in 2024 and are projected to reach 21% by 2029, with annual growth of 7.8% across major markets such as the UK, Germany, and France. The UK leads in online penetration, where e-commerce represents 27% of retail sales, expected to rise to 32% by 2029. Germany and France follow with shares of 16% and 14%, respectively, highlighting the structural shift toward digital channels. The EU’s Single Market Strategy 2025 aims to reduce regulatory barriers, harmonize digital labeling, and tackle territorial supply constraints to strengthen competitiveness and support SMEs in adapting to omnichannel retail models.

Asia-Pacific remains the global growth engine for retail. The region accounted for 37% of global retail sales in 2023, projected to rise to 40% by 2028, driven by rapid urbanization, a growing middle class, and rising disposable incomes. Retail spending in APAC grew 5% in real terms in 2024, outpacing Europe and North America, with India, Indonesia, and Vietnam leading gains. India’s retail sector is booming, supported by strong consumer demand and tourism-driven street markets, while Indonesia and South Korea posted retail sales growth between 4% and 14% in 2024.

E-commerce adoption is accelerating across Asia. The Asia-Pacific e-commerce market was valued at $2.9 trillion in 2024 and is forecast to reach $9.67 trillion by 2034, growing at a 12.8% CAGR. Southeast Asia alone is projected to hit $230 billion in GMV by 2026, with Indonesia leading at $82 billion in 2023. Platforms like Alibaba, Shopee, and TikTok Shop dominate online retail, while cross-border e-commerce is surging, supported by digital wallets and bonded logistics networks. China’s retail sector, however, faces headwinds: retail sales grew only 2.9% year-on-year in October 2025, marking its slowest pace in over a year, as consumer confidence remains subdued despite stimulus measures.

Inflation and rising costs continue to impact retail and construction globally. In Europe, consumer prices stabilized at 2.6% in 2024, but high interest rates and energy costs have constrained household spending and retail investment. Construction costs remain elevated, with global building costs increasing 5–7% in 2024, driven by material price volatility and labor shortages. Retailers are responding by adopting omnichannel strategies, integrating physical and digital experiences, and leveraging AI-driven personalization to enhance customer engagement.