PMG Digital Made for Humans

PMG State of Commerce Report: The 2025 Retail Outlook for Europe

April 3, 2025 | 5 min read

WHAT'S TRENDING

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Erica Rix, Strategy Senior Principal

As a Strategy Senior Principal at PMG, Erica Rix is a strategic marketing leader specializing in solving complex business challenges through data-driven media and marketing strategies. She partners with top retail brands to navigate shifting consumer behaviors, optimize investment strategies, and drive measurable business impact across the full funnel. With 19 years of experience in marketing strategy, Erica blends deep industry expertise with a passion for insights and strategic problem-solving, ensuring brands stay ahead in an evolving marketplace.

The European retail landscape is navigating a complex but opportunity-rich environment defined by economic volatility, evolving consumer expectations, and rapid shifts in digital and physical commerce. While inflation is beginning to stabilise and real wages rise, uneven growth across the region and persistent global trade disruptions continue to shape consumer behaviours and market conditions.

PMG’s 2025 Retail Outlook for Europe report provides a comprehensive analysis of the macroeconomic forces, shifting demographics, and technology-led trends transforming the retail sector across the continent. From the rising influence of the Silver Generation and Gen Z to the growing dominance of social commerce and AI-driven personalisation, this edition offers data-backed insights to help brands thrive in a fragmented, fast-moving market.

  • Economic Trends & Regional Dynamics: Understand how inflation, interest rates, and geopolitical tensions are impacting consumer confidence across the region.

  • Consumer Shifts in Behaviour: Discover how price sensitivity, sustainability, and the rise of resale are influencing buying decisions in key markets like Germany, the UK, and France.

  • Retail Sector Growth & Challenges: Explore where growth is accelerating - such as in physical retail and off-price fashion - and which segments face mounting cost and trade pressures.

  • Digital Media & Technology Innovation: Uncover how short-form video, creator-led advertising, and retail media networks are shaping the next wave of consumer engagement.

  • Generative AI & the Future of Discovery: Learn how leading retailers across Europe are using AI to personalise, automate, and enhance both customer experiences and operational efficiency.

Download your copy today.