- Fashion remains the largest retail occupier in Europe
- Mixed goods retailers expanded in H1 2025, with a 55% increase in leased space and a 33% jump in leasing transactions year-over-year
- High street retail led rental growth, while retail parks reached new record rents
- Home and DIY retailers leased 65% more space compared to 2024
In its latest European Retail Radar report, the market-leading company analyzed leasing transactions it was involved in across Europe to provide a representative view of the current retail landscape.
The mixed goods sector stood out as the second largest in terms of transaction volume, representing 24% of leased space and 17% of completed transactions in H1 2025. The food & beverage (F&B) and personal goods sectors jointly held third place, each accounting for 13% of total transactions during the same period (see Figures 1 and 2 below).
Fashion sector in focus
The mass market segment continued to dominate retail activity, representing around 70% of both leased area and number of deals between January and June 2025. Within this segment, fashion retailers stood out, responsible for over one-third of transactions. Among the most active brands in H1 were Mango, several Inditex group labels — such as Zara and Massimo Dutti — as well as Jack & Jones.
Meanwhile, the luxury segment saw significant growth, with lease numbers increasing by more than 50% compared to H1 2024. Luxury operators were particularly active in Italy and the UK, with several deals also signed in France and the Czech Republic.
This dynamism in the fashion industry may be partly linked to high levels of tourism across Europe, which are expected to reach record highs in 2025. It is estimated that long-haul travel will surpass, for the first time since pandemic restrictions were lifted, the arrival levels seen in 2019.
From Pop Mart to Poke Bowls: retail trends driving H1 2025
Mixed goods retailers formed the second largest group of occupiers by lease contracts (17%) and accounted for nearly a quarter (23%) of total leased area. This segment saw strong growth, with a 55% increase in leased space and a 33% rise in transactions compared to H1 2024. Brands like Normal and Miniso remained among the most active, while collectible retailer Pop Mart — known for its popular Labubu characters — completed several leases during the period.
The food & beverage sector ranked third in transaction volume, alongside personal goods, each representing 13% of total deals in H1 2025. F&B also accounted for 7% of total leased area. Casual dining continues to expand, with chicken-focused brands standing out: Wingstop maintains its growth in the UK, while American chain Popeyes is entering new European markets. At the same time, demand for healthy options is rising. Poke bowl brands like Hawaiian Poke and Poke House, as well as salad bars like Honest Greens and The Salad Project, are becoming popular choices for quick meals, reflecting consumers’ growing focus on wellness and balanced eating habits.
The home and DIY sector also performed strongly, with a nearly 20% increase in lease contracts, representing 7% of all transactions in H1. Leased area in this segment grew by 65% compared to the same period in 2024. Active retailers included Plum' Art, Søstrene Grene, and Thun.
Retail rent trends
Rental growth increased across all retail asset classes in Europe, with high street retail seeing the highest year-over-year rent growth (+4%) compared to retail parks (+3.5%) and shopping centers (+1.9%). Rent growth has been particularly strong on Europe’s most prestigious shopping streets, where foot traffic continues to improve and retailers compete for prime locations. Meanwhile, retail parks reached new record rents, and shopping center rents nearly returned to 2018 levels.
Outlook
Consumer confidence is expected to remain relatively stable through the end of 2025. Despite ongoing concerns, falling inflation and lower interest rates should ease some financial pressure on households. Nevertheless, consumer spending growth is likely to remain moderate in the short to medium term, reflecting the continued impact of living costs, geopolitical tensions, and broader economic uncertainties.
In response, retailers are adapting to a reality of constrained purchasing power by investing in flagship stores that offer memorable and differentiated experiences. Strategic property selection is becoming increasingly critical, with competition for prime locations intensifying due to limited availability of high-quality spaces.
João Esteves, Head of Retail at Cushman & Wakefield Portugal, stated: “Also in Portugal, real estate strategy remains a key element for success in the retail sector. High street retail continued to be the predominant format for new openings, with foodservice standing out by accounting for 47% of new units opened in H1 2025. The leisure and culture segment was responsible for 17% of openings, while fashion represented 9%, reflecting the growing diversity of commercial offerings. Nonetheless, the retail park format continues its strong growth trajectory, and shopping centers have shown solid consolidation over recent years.”
