Post-pandemic, the role of the physical store has been significantly elevated. Demographic shifts, particularly among younger cohorts who favour in-person experiences (even if the final transaction occurs online), combined with rising costs associated with online delivery and customer acquisition, have prompted a recalibration of online strategies. As a result, stores, or rather physical embodiments of the brand, are increasingly central to driving customer engagement, brand loyalty, and reducing online costs through services such as in-store click & collect and returns.

This shift is evident in the strategies of some of Europe’s largest retail brands. Inditex and H&M Group, for example, continue to expand their physical footprints and reinvest in existing stores with customer-centric refurbishments. Europe’s gateway cities remain key targets for global brands or those with global ambitions, with a growing emphasis on city-centred strategies as these markets can deliver in terms of scale, customer density, international visitor reach and affluence. And this is evident in the scale and breadth of international retailers, brands, F&B and leisure concepts making their debuts across Europe’s major cities. For example, as of early September, approximately 114 international brands have launched across 17 major European cities on the back of the 177 new entrants recorded in 2024.

Aspirational, premium fashion retains top spot

Fashion continues to lead as the most acquisitive segment in terms of new international entrants across Europe’s gateway cities, aligning with the capital deployment we’ve seen over the last four years (see figure 14). To date this year, there have been 47 store openings by fashion, footwear and sports & athleisure brands making their market debuts, equating to 41% of all new openings by new entrants. Swedish fashion brand Arket, part of the H&M group, has been one of the most expansive, not just in fashion terms but across all product categories. First stores were opened in Barcelona, Helsinki, Warsaw, Milan, Dublin and Zurich with additional new openings in existing markets such as London, as they look to deepen their relationship with local customers supported by H&M Group’s existing logistics and omnichannel infrastructure - further evidence of the elevated role physical stores are playing in retailer strategies.

The most expansive in regards to brand positioning has been aspirational, premium brands accounting for 53% of all new fashion brand store entries (see figure 9). Activity by premium brands this year has been relatively more subdued than seen in 2024 largely in response to availability challenges across prime retail destinations, the preferred target areas for these types of occupiers, across Europe’s major gateway cities. In particular, London, Paris and Milan combined, which have accounted for approximately half of these store openings by new entrants, saw a more pronounced reduction in share. More acute availability issues in these markets can be attributed to this slowing.

Sports & athleisure brands step up their pan-European expansion

One part of the fashion segment that has been more acquisitive has been sports & athleisure, particularly within the aspirational segment. Retailers and brands from this segment accounted for 11% of all new entrant store openings to date this year, up on the 5% share in 2024; even in count terms there was an increase from 9 to 12 to date this year. Amsterdam has proven a popular landing zone, welcoming American Alo Yoga on Wolvenstraat, British Gymshark on Kalverstraat 178, and Spanish Oysho, which debuted with a four-floor flagship, at 42 Kalverstraat. Looking to global capital deployment trends, explored in figure 14, this activity is set to continue into 2026 driven by existing players expanding their international reach across Europe and new names coming to the fore.

Luxury new entrants continue to be acquisitive, with wider market headwinds focusing attentions on key Global cities

The headwinds facing the luxury segment globally has been reflected in a reduced number of luxury brands making market debuts across Europe in 2025, albeit in percentage terms within the fashion segment its share is on a par with last year. There was a slight shift in the share of new openings towards the major luxury cities of Paris, London and Milan; increasing from 43% to 45% of all luxury new entrant store openings. While all cities saw a decline in luxury new entrants in count terms in 2025, Milan was an outlier reporting a small increase in new openings. Its global positioning as one of the premier luxury cities, its international visitor appeal and more recently non-dom tax changes, which has resulted in an influx of HNWI, has cemented the city as a major target for expansive luxury brands. For example, Canadian label Ports 1961 secured space on Via della Spiga, while the American brand Amiri made its European debut on the same street, securing the former Canada Goose unit.

International F&B concepts to maintain expansion momentum in 2025

F&B has proven to be one of the most expansive product categories in real terms with new entrant openings, totalling 28 over the first nine months of 2025, just ahead of the 27 seen over the full year of 2024. In share terms it accounted for 25% of new entrants, up from 15% last year. London remains the epicentre of activity, with six confirmed openings to date in 2025. The sector is one that is largely immune to online, with growth to a certain extent being supported by the expansion in delivery services such as Deliveroo. The scale of funding into this space, particularly into US F&B concepts, has also been key to driving growth. Looking to future funding trends, which we explore later in the report, this is set to continue.

Trade tensions reshape global retail expansion

Proximity and the single market have underpinned significant cross border activity within Europe; 56% of new sites opened by new entrants across Europe’s key cities in 2025 were European origin brands, particularly those within the fashion segment. French, Italian, and Spanish brands have led this activity, a reflection of the fashion credentials of these markets.

While regionally Europe has driven new entrant activity, the biggest single origin market has been the US in 2025 continuing the trend seen the previous year. US retailers, brands and F&B concepts have rolled out 29 first entry stores/sites in major European cities to date this year; equating to 25% of all new openings and driven by businesses in the F&B and fashion categories.

The acceleration in US occupier expansion can, in part, be attributed to recent US trade tariff tensions and weakening consumer confidence at home leading a number to accelerate cross border expansion strategies. A trend that was observed in London in 2018/19 during Trump’s first term and his then tariff warnings. Funding into US brands and F&B concepts has also aided this. July’s EU-US trade deal will provide further confidence to US businesses suggesting that US expansion activity is set to continue into 2026.

US trade relations have also influenced cross border activity from other origin markets. Canadian brands, who historically would have focused on the US initially, have pivoted attentions to Europe amid strained trade and political tensions with its closest neighbour. Canadian new entrants, though fewer in number, are gaining a foothold in Europe, particularly in the sports & athleisure segment. Milan’s gravitational pull, a blend of fashion credibility and affluent footfall, has drawn Arc’teryx and Lululemon into its orbit, underscoring the city’s role as a hub for performance-led lifestyle brands.

China’s retail pivot westward reflects a more strategic recalibration. Historically concentrated in London and Paris, Chinese brands are now widening their European footprint in order to diversify revenue streams and reduce reliance on domestic consumers post-pandemic. Punitive US tariffs have intensified this trend. In 2025 alone, Pop Mart, MINISO, and BYD have launched in Berlin, Amsterdam, and Zurich, respectively. The Toys and Hobby segment has emerged as a standout export category for Chinese brands.

Market to watch: Prague

Prague has firmly positioned itself as one of Europe’s most desirable brand entry points, matching London in welcoming the highest number of new international brands last year - 38 in total. Among European nations, Czechia distinguishes itself with a strong macroeconomic and retail outlook, ranking among the top performers with a projected GDP growth of 2.2% and an anticipated 4.1% rise in real retail sales this year.

What truly sets Prague apart is the dynamic interplay between both domestic demand and a flourishing tourism sector. As illustrated in figure 4, Prague leads 96 major European cities in projected annual per capita consumer spending growth through to 2030: 5.1% for clothing and footwear, 6.7% for furniture, and 7.9% for telephone equipment. This cosmopolitan, experience-driven consumer market is drawing a diverse mix of fashion and F&B operators. Pařížská Street, in particular, continues to attract top global brands, with recent and upcoming openings from CHANEL, Ermanno Scervino, Damiani, Max Mara, and Pasquale Bruni.

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