Europe's retail market shows strong resilience

Despite rising global instability and economic concerns, Europe continues to be the most appealing retail market worldwide.

Global Retail Attractiveness Index - Union Investment

This is confirmed by the latest Global Retail Attractiveness Index (GRAI) from Union Investment and NIQ-GfK. Even with a slight dip after a strong 2025, the EU-15 Retail Index still hit an impressive 115 points in early 2026, significantly outperforming North America (99 points) and Asia-Pacific (97 points).

While consumer and retailer confidence has somewhat softened recently due to factors like high energy costs and ongoing geopolitical tensions, actual retail spending remains robust. This steady retail activity across the EU-15 is a positive sign for the overall market. In fact, this stability is becoming Europe's key competitive advantage in today's unpredictable environment.

The GRAI, which considers factors like confidence levels, unemployment, and retail sales, revealed some interesting trends. The Czech Republic, for instance, saw a notable surge in consumer confidence (+16.2 points) but a sharp drop in retailer confidence (-24.5 points). This suggests consumers are feeling more optimistic, even as retailers remain wary. Nevertheless, the Czech Republic, with 126 points, remains a top European retail market, ranking second only to Poland (136 points), with Portugal (123 points) in third.

France also demonstrates these uneven trends: weak consumer confidence and a worsening job market led to a two-point drop in its overall retail index to 109. Yet, retail sales themselves are still positive, further illustrating Europe's pattern of strong spending despite cautious sentiment.

Laura Roll, senior investment manager Retail @ Union Investment, said: “What makes Europe stand out is not explosive short-term growth, but balance and resilience. Retail trade remains healthy, consumers continue to spend, and many retailers maintain confidence despite difficult macroeconomic conditions.”

Roman Müller, head of Investment Management Retail @ Union Investment, added: “As a result, Europe’s retail market is showing signs of stabilisation rather than contraction. The combination of moderate confidence levels and healthy retail trade points toward a market that remains active, adaptive, and capable of absorbing external shocks.”