European retail sector achieves seven-year high

The European retail market is experiencing a significant resurgence, with the EU-15 region reaching its highest performance level since 2018. 

Global Retail Atractiveness - Union Investment

According to the latest Global Retail Attractiveness Index (GRAI) for the third quarter of 2025, compiled by Union Investment and NIQ-GfK, Europe continues to lead the global rankings, outperforming both North America and the Asia-Pacific regions.
The EU-15 Retail Index soared to 116.6 points, driven by rising consumer confidence and positive retail sentiment despite tight labour markets and diverse national economic conditions. 
Southern and Eastern European countries are experiencing particularly robust growth in consumer confidence. Spain leads this charge with an 18.2-point increase, signalling a strong recovery in household confidence and spending after a period of stagnation. Poland (+6.6 points) and Portugal have also emerged as new top performers within the EU-15 index, joining Spain at the forefront of the region's retail expansion. The Czech Republic (+6.8 points) also demonstrated strong growth.
In contrast, several countries are facing headwinds. Denmark (91.9 points), Finland (95.5 points), Austria (98.6 points), and Sweden (98.9 points) recorded the lowest scores among the 15 markets surveyed, falling significantly below the EU-15 average. Austria continues to grapple with high inflation, while the three Nordic nations are severely impacted by the ongoing Ukraine crisis.
Other significant shifts include France, which saw the sharpest decline in consumer confidence (-10.8 points) and an overall 4.1-point loss in its Retail Index compared to Q3/2024, reflecting persistent macroeconomic uncertainties. Germany and the Czech Republic also experienced slight declines in retailer confidence year-over-year.
Bucking some of the negative trends, the UK demonstrated the largest improvement among all European countries covered in the survey, with an 8.7-point increase in its current Retail Index. 
For active asset and investment managers, this heterogeneous market presents compelling opportunities. The divergence in national performance, characterised by thriving regions alongside those facing challenges, allows for targeted acquisitions and disposals of retail properties.
According to Union Investment, the latest GRAI confirms that European consumers remain engaged, retailer confidence is growing in key regions, and the retail sector is gaining momentum. This positions the European retail industry not only for stability but also for active growth in 2026, particularly for those with in-depth sector and country-specific expertise.