- Fashion industry maintains position as the largest retail occupier across Europe
- Mixed Goods retailers expanded in H1 2025, with leased space up 55% and letting transactions jumping 33% YoY
- High streets led rental growth whilst retail parks recorded new record-high rents
- Home & DIY retailers leased 65% more space compared to 2024
London, 25 September 2025 – Fashion remains Europe’s dominant retail sector, accounting for 37% of all leased floorspace in H1 2025, according to new analysis by real estate services firm Cushman & Wakefield.
In its latest European Retail Radar report, the firm, a market leader in the sector, analysed real estate letting transactions across Europe in which the firm has played a part to provide a representative picture of the retail landscape.
Mixed Goods was the second largest sector by deals, accounting for 24% of floorspace leased and 17% of transactions concluded in H1 2025. The Food & Beverage (F&B) and Personal Goods sectors took joint third place by deal number, with each accounting for 13% of all deals completed throughout H1 2025.
Fashion sector in focus
The mass market once again represented the vast majority of activity across the retail sector, accounting for almost 70% of both floorspace leased and deals between January and June. Within the mass market retailers taking space in H1 2025, Fashion retailers account for over a third of all deals with the most active fashion brands in the first half of the year including Mango and Inditex-owned brands such as Zara and Massimo Dutti, as well as Jack & Jones.
Meanwhile, luxury brands saw an uptick in activity, with the number of lettings having increased by over 50% in H1 2025, compared to a year earlier. Luxury occupiers were particularly active in Italy and the UK, with multiple lettings also signed in France and the Czech Republic.
The fashion industry may in part have been supported by the strong levels of tourism across Europe which is expected to reach record highs in 2025. Long-haul travellers are also expected to exceed their 2019 arrival levels for the first time since the pandemic travel restrictions were lifted.
From Pop Mart to Poke Bowls: The Retail Trends Driving H1 2025
Mixed Goods retailers account for the second largest occupier group in terms of both number of letting deals (17%) and nearly a quarter (23%) of leased space. There has been a significant increase in activity, with 55% more space leased and 33% more letting transactions agreed compared to H1 2024. Brands such as Normal and Miniso remain the most active whilst collectibles retailer Pop Mart, which stocks the viral Labubu characters, recorded multiple lettings throughout the first half of 2025.
F&B was the joint third largest sector by transaction volume in H1 2025, alongside Personal Goods, with each accounting for 13% of all deals. F&B also represented 7% of total space leased. Casual dining continues to expand, with chicken-focused brands being active: Wingstop continues to grow its UK footprint and US chicken chain Popeyes entering new European markets. At the same time, demand for health-focused options is rising. Poke bowl brands like Hawaiian Poke and Poke House, along with salad bars such as Honest Greens and The Salad Project, are fast becoming lunchtime staples as consumers prioritise wellness and healthier eating habits.
The Home & DIY sector recorded strong growth, with a nearly 20% rise in lettings, accounting for 7% of all deals in the first half of the year and 65% more space leased compared to the same period a year ago. The most active Home & DIY retailers included Plum’ Art, Søstrene Grene and Thun.
Retail Rental Developments
Rental growth increased across all retail asset classes in Europe, high streets across Europe experienced the strongest rental growth YoY (+4%) compared to retail parks (+3.5%) and shopping centres (+1.9%). Rental growth has been particularly strong on the most prestigious European high streets where footfall has continued to improve and retailers compete to secure locations. Meanwhile, retail parks recorded new record-high rents and shopping centre rents almost returned to their 2018 levels.
Looking Ahead
Consumer confidence is expected to remain steady through the remainder of 2025; whilst consumer concerns linger, lower inflation and falling interest rates will ease household pressures. However, growth in consumer spending is likely to remain modest in the short to medium term due to persisting cost of living dynamics, geopolitical tensions and wider economic concerns.
Retailers are responding to more modest disposable spending from consumers by creating striking flagship stores that provide memorable spaces. Securing the right properties will continue to be even more essential, as shown by the availability in prime locations becoming even more competitive.
Rob Travers, Head of EMEA Retail at Cushman & Wakefield, said: “Retailers are leaning into evolving their retail space to establish standout and memorable experiences for customers that create a buzz and build connection between brands and their customers. Real estate strategy is now even more central to retail success.”
Read the full H1 2025 European Retail Radar report.
