After years of structural change, pandemic disruption, and accelerated digitalization, retail in Europe’s leading cities has entered a more selective and more mature phase. Demand has returned, footfall has stabilized, and investment appetite is rebuilding — but success is increasingly concentrated in cities that offer more than scale, as the latest JLL European Retail City Profiles illustrate. What distinguishes the strongest markets is their ability to function as places: dense, walkable, mixed-use environments where retail is embedded into everyday urban life.
This article was published in ACROSS Issue 1|2026
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Global Flagships under Pressure: Paris and London
Paris and London remain the unquestioned flagships of European retail. Their scale, international visibility, and density of flagship stores are unmatched. Yet even these global markets are no longer immune to selectivity.
Paris
Paris supported by nearly 49 million visitors in 2024 — with a boost from the Summer Olympics — continues to combine global tourism with one of Europe’s most affluent consumer bases. Retail sales across Paris and its wider region are projected to reach €167.6 billion in 2025, growing steadily at around 3.1% per year. Prime locations such as the Champs-Élysées and Rue Saint-Honoré continue to attract flagship investment, particularly from luxury and premium brands. At the same time, districts like Le Marais and Saint-Germain-des-Prés highlight a parallel trend: experiential, lifestyle-led retail thriving in historic, mixed-use neighborhoods. Paris demonstrates that even at the top end of the market, placemaking and authenticity are now essential to sustain demand.
London
London mirrors this dynamic on an even larger scale. With retail sales expected to reach €148 billion in 2025 and average household disposable income far exceeding the national average, the city remains Europe’s most diverse retail ecosystem. The West End continues to dominate, yet expansion strategies have become more precise. Retailers are carefully selecting micro[1]locations, unit sizes, and adjacencies, while mixed-use destinations such as Covent Garden, Battersea Power Station and Coal Drops Yard illustrate how retail, leisure, and culture increasingly overlap. London’s resilience lies not in constant growth but in its ability to reinvent retail streets as urban destinations rather than transactional corridors.
PARIS
Market size & growth outlook
Retail sales across Paris and its surrounding region are projected to reach €167.6 billion in 2025, making it Europe’s largest retail market. The Paris metropolitan area counts 12.4 million inhabitants and benefits from one of Europe’s most affluent consumer bases, with average household disposable income reaching €83,400 in the city. Retail sales are forecast to grow by 3.1% per year (2025–2029). Prime rents on Avenue des Champs-Élysées stand at €20,500 per sq m per year (Q3 2025).
Notable store openings
Recent flagship activity includes expanded Zara and Nike formats on the Champs-Élysées, continued luxury leasing on Rue Saint-Honoré, and a steady inflow of premium and lifestyle brands into Le Marais, reflecting Paris’ dual appeal to global luxury and experiential retail.
Notable shopping centers & developments
Key retail destinations include Westfield Les 4 Temps, Westfield Vélizy ,2 and Beaugrenelle, while new supply is largely limited to redevelopment projects due to France’s Zero Net Land Artificialization policy.
LONDON
Market size & growth outlook
London’s retail sales are expected to reach €148 billion in 2025, supported by a metropolitan population of 9.3 million and one of Europe’s highest disposable incomes at €113,400 per household. Retail sales are forecast to grow by 3.1% annually (2025–2029). Prime rents on Old Bond Street reached €21,000 per sq m per year in Q3 2025, among the highest globally.
Notable store openings
London continues to attract first-to-Europe concepts and brand expansions, including Alo Yoga, Vuori, and Bath & Body Works. Luxury brands remain active on Bond Street, while Covent Garden and King’s Road attract lifestyle-led formats.
Notable shopping centers & developments
Westfield London and Westfield Stratford City remain Europe’s most productive malls. Mixed-use destinations such as Battersea Power Station and Coal Drops Yard highlight London’s placemaking-driven retail evolution.
Metropolitan Engines: Berlin, Madrid, and Barcelona
Beyond the global capitals, Western Europe’s large metropolitan markets are driving much of the continent’s retail momentum.
Berlin
Berlin has emerged as one of Europe’s most dynamic retail cities. Germany’s largest retail market, with sales forecast to reach €37.7 billion in 2025, benefits from both scale and structure. Its polycentric layout allows several retail districts to thrive simultaneously, from Kurfürstendamm and Tauentzienstraße in the west to Berlin-Mitte, Alexanderplatz, and Potsdamer Platz in the east. Strong population growth, rising tourism, and an open, creative atmosphere have encouraged many retailers to adopt multi-store strategies across the city. Berlin’s retail success is closely tied to its urban diversity: shopping centers, high streets, gastronomy, and entertainment concepts function together rather than in competition.
Madrid
Madrid represents the strongest retail engine in Southern Europe. With retail sales expected to exceed €53 billion in 2025, the Spanish capital combines affluent domestic demand with rapidly growing tourism spending. Prime districts such as Salamanca and Calle de Serrano continue to attract luxury and premium brands, while Gran Vía remains one of Europe’s most productive mainstream high streets. What distinguishes Madrid is its ability to absorb growth without fragmenting. Low vacancy in prime areas is pushing retailers into adjacent neighborhoods, reinforcing the city center rather than diluting it. Placemaking in Madrid is driven by density and continuity, supported by major mixed-use developments that integrate retail into offices, hotels, and public space.
Barcelona
Barcelona occupies a unique position within Europe’s retail landscape. Tourism plays an outsized role, with international visitors accounting for a significant share of city-center retail spending. Retail sales are projected to reach €39 billion in 2025, supported by household incomes well above the national average. Passeig de Gràcia remains the city’s prime luxury and premium destination, while Portal de l’Àngel anchors mainstream retail flows. At the same time, Avinguda Diagonal and refurbished shopping centers such as Westfield Glòries and L’Illa Diagonal reflect Barcelona’s evolution towards sustainability and experience-led retail. Strict heritage regulations slow development, but they also preserve the city’s architectural identity — a key asset in long-term placemaking.
BERLIN
Market size & growth outlook
Berlin is Germany’s largest retail market, with retail sales forecast to reach €37.7 billion in 2025. The city has 3.9 million inhabitants and an average household disposable income of €56,200. Retail sales are projected to grow by 4.4% annually between 2025 and 2029, among the highest growth rates in Europe. Prime rents on Tauentzienstraße stand at €3,480 per sq m per year.
Notable store openings
Recent openings include Lululemon, Hoka, Sephora, and Tiger of Sweden across Mitte and Charlottenburg. Entertainment and gastronomy concepts are increasingly taking prime high-street space.
Notable shopping centers & developments
Mall of Berlin and Alexa Berlin dominate inner-city retail, while The Playce at Potsdamer Platz has repositioned itself as a testbed for experiential and pop-up retail.
MADRID
Market size & growth outlook
Madrid is Southern Europe’s largest retail market, with retail sales expected to reach €53.1 billion in 2025. The metropolitan area counts 7.2 million inhabitants, and average household disposable income stands at €67,300. Retail sales are forecast to grow by 3.7% annually (2025–2029). Prime rents on Calle de Serrano reached €3,132 per sq m per year in Q3 2025.
Notable store openings
Gran Vía has seen continued flagship activity from Nike and international fashion brands, while Salamanca attracts luxury expansion from Tiffany & Co., On Running and premium jewelry retailers.
Notable shopping centers & developments
Key schemes include Westfield Parquesur, Intu Xanadú and Galería Canalejas, with mixed-use developments reinforcing the city-center retail ecosystem.
BARCELONA
Market size & growth outlook
Barcelona is Europe’s fourth-largest retail market, with retail sales projected to reach €39.0 billion in 2025. The metropolitan area has 6.0 million inhabitants, and household disposable income averages €60,000, 13% above the national average. Retail sales are forecast to grow by 3.3% annually (2025–2029). Prime rents on Passeig de Gràcia stand at €3,226 per sq m per year.
Notable store openings
Recent activity includes Hugo Boss, Max Mara, Mango Home and Aesop across Passeig de Gràcia, Portal de l’Àngel and Avinguda Diagonal, reflecting both luxury and lifestyle demand.
Notable shopping centers & developments
Westfield Glòries, L’Illa Diagonal and Maremagnum have undergone major repositioning, with a strong focus on sustainability, gastronomy and experiential retail.
Affluent Anchors and Gateway Cities: Antwerp, Brussels, Düsseldorf, and Frankfurt
Smaller in scale but no less strategic are Western Europe’s affluent regional and gateway cities
Antwerp
Antwerp demonstrates how cultural identity can translate into retail resilience. Belgium’s second-largest retail market benefits from high household incomes, strong cross-border visitation, and a compact, walkable city center. Retail spending is expected to exceed €11 billion in 2025, with one of the highest growth outlooks in the country. Streets such as Meir, Huidevettersstraat, and Schuttershofstraat form a dense retail loop where mainstream, premium, and luxury brands coexist. Antwerp’s fashion heritage and ongoing mixed-use redevelopment underline how authenticity, rather than size, can drive placemaking success.
Brussels
Brussels, Belgium’s largest retail market, plays a distinct role as both political capital and retail test market. Its diverse population and flexible leasing structures encourage brand experimentation. Retail spending is projected to exceed €12 billion in 2025, supported by strong tourism recovery. The contrast between the luxury-led Uptown area and the high-footfall downtown district around Rue Neuve illustrates how different retail formats can coexist within a single city center, each serving a clearly defined role.
Düsseldorf + Frankfurt
Düsseldorf and Frankfurt highlight the importance of regional catchments. Düsseldorf’s Königsallee remains one of Europe’s most elegant luxury streets, supported by exceptional purchasing power and limited supply. Frankfurt, drawing daily from the wider Rhine-Main region, benefits from a unique mix of affluent residents, business travelers, and international tourists. In both cities, retail performance is closely linked to accessibility, mixed-use development and the integration of retail into broader urban functions.
ANTWERP
Market size & growth outlook
Antwerp is Belgium’s second-largest retail market, with retail spending expected to exceed €11 billion in 2025. The metropolitan area counts 1.2 million inhabitants, and average household disposable income reaches €71,800. Retail sales are forecast to grow by 4.2% annually (2025–2029). Prime rents on Meir stand at €1,700 per sq m per year.
Notable store openings
Lululemon’s first Belgian store, continued luxury expansion on Schuttershofstraat, and an upcoming large Zara flagship underline Antwerp’s fashion-led positioning.
Notable shopping centers & developments
Shopping Stadsfeestzaal anchors the city-center retail loop, while Wijnegem Shop Eat Enjoy serves as the region’s dominant out-of-town destination.
BRUSSELS
Market size & growth outlook
Brussels is Belgium’s largest retail market, with retail spending expected to exceed €12 billion in 2025. The city has 1.3 million inhabitants, while the wider metropolitan area surpasses 2.5 million people. Average household disposable income stands at €59,700, broadly in line with the Eurozone average. Retail sales are forecast to grow by 3.6% annually between 2025 and 2029, with stronger momentum expected from 2026 onwards. Prime rents on Rue Neuve reached €1,650 per sq m per year in Q3 2025.
Notable store openings
Recent openings reflect renewed confidence across both Up-Town and Down-Town. Luxury retailer Zimmermann has opened on Boulevard de Waterloo, while Lululemon expanded on Avenue de la Toison d’Or. In Down-Town, Skechers opened its first Brussels store on Rue Neuve, and HMV relaunched internationally with a new store in City 2.
Notable shopping centers & developments
Key schemes include City 2, Woluwe Shopping Center, Westland and Docks Bruxsel, each serving distinct catchments. City 2 remains the dominant inner-city destination following its repositioning and food-led enhancements.
DÜSSELDORF
Market size & growth outlook
Düsseldorf’s retail sales are expected to reach €8.3 billion in 2025, serving a city population of 658,200 and a metropolitan area of 2.9 million, with the wider Rhineland region extending the effective catchment to 8 million inhabitants. Average household disposable income stands at €70,100, among the highest in Germany. Retail sales are projected to grow by 3.8% annually from 2025 to 2029. Prime rents on Königsallee reached €3,360 per sq m per year in Q3 2025.
Notable store openings
Luxury and premium fashion brands remain highly active. Recent openings include Louis Vuitton, Rimowa, Diesel and Marc O’Polo on Königsallee, alongside Hugo Boss on Schadowstraße. Experiential and automotive concepts such as Aston Martin’s brand store have also entered central locations.
Notable shopping centers & developments
Kö-Galerie, Sevens and Schadow Arkaden anchor the city center’s retail offer, while mixed-use developments such as Le Coeur and the planned redevelopment of Trinkhaus Carrée will introduce new prime retail supply.
FRANKFURT
Market size & growth outlook
Frankfurt’s retail spending is projected to exceed €6 billion in 2025, supported by a city population of 753,000 and a metropolitan region of 5.9 million. Over one million people enter the city daily, significantly expanding the retail catchment. Average household disposable income reaches €62,300. Retail sales are forecast to grow by 3.6% annually between 2025 and 2029. Prime rents on Zeil reached €3,360 per sq m per year in Q3 2025.
Notable store openings
Recent highlights include Bershka’s largest global store on Zeil, new openings from Dr. Martens and DSquared2, and upcoming flagship stores from Uniqlo and Thalia. Sports and lifestyle brands such as Decathlon and Sportscheck have also expanded.
Notable shopping centers & developments
MyZeil remains the dominant inner-city scheme, attracting over 15 million visitors annually. The mixed-use FOUR Frankfurt development will further integrate retail into the city’s CBD, strengthening links between finance, residential and high-street retail.
A shared Direction for Western Europe
What emerges across these cities is not uniformity, but convergence. Western Europe’s urban retail markets are aligning around a common principle: retail works best when it is part of a broader urban experience. High streets, shopping centers, and mixed-use developments are no longer competing formats; they are complementary components of city life.
Placemaking has become the defining opportunity — and risk. Cities that invest in public realm, heritage, sustainability, and mixed-use integration are strengthening their retail fundamentals. Those that fail to adapt to risk polarization, even if headline market size remains impressive. The JLL European Retail City Profiles show that Western Europe’s retail future will not be driven by expansion alone, but by depth: depth of experience, depth of identity, and depth of integration into the urban fabric. In that sense, the next phase of European retail is not about building more space — it is about making cities work better as places.
