European e-commerce sales volumes continued to grow through 2025 and now sit just 1% below the high reached in 2021, according to new research from CBRE, signalling that the market has entered a more stable and mature phase.
Across most major European markets, the share of retail spending captured online has realigned with long-term growth trends established pre-pandemic, reflecting a stabilisation in consumer behaviour. While further growth in online retail is anticipated, it is expected to be more moderate and consistent with a more advanced stage of market development.
The European e-commerce landscape remains highly concentrated, with the UK, Germany and France accounting for over 50% of total sales volumes in 2025. A small number of markets, including Spain, Poland and Ireland, continue to outperform and sit materially above historic trend levels. In Spain and Poland, growth has been supported by strong digital adoption and advanced delivery infrastructure. In Ireland, sustained government support for online retail, expansion of domestic logistics infrastructure, and continued digital transformation have helped maintain e-commerce penetration at around 19% since 2022.
E-commerce continues to underpin logistics demand across Europe, although take-up levels across the sector in 2024 and 2025 have moderated to 7% from earlier peaks of 18% in 2020 and 17% in 2021. Demand has increasingly shifted towards third-party logistics (3PL) providers, with occupiers prioritising modern, automation-ready warehouses as the focus moves from rapid expansion to operational efficiency.
Physical retail is playing an expanding role in omnichannel strategies. Retailers are allocating more space to in-store fulfilment, with stockroom space increasing from around 15% historically to up to 25% of total leased area in some cases. In parallel, particularly within the clothing and footwear segment, retailers are increasingly charging for postal returns while offering free in-store returns, encouraging greater in-store activity and reinforcing demand for prime retail locations.
Chris Gardener, head of European retail, said: “E-commerce growth may be more measured, but it is highlighting the importance of physical retail rather than diminishing it. Stores are increasingly central to omnichannel strategies, acting as fulfilment hubs as well as brand flagships. This is supporting demand for well-located, prime retail space, as retailers focus on both quality and customer experience.”
CBRE Press Release
Jack Cox, Head of European Industrial & Logistics, said: “Online retail remains a structural source of demand for logistics real estate, but the emphasis has clearly shifted toward efficiency and optimisation. Occupiers are prioritising modern, automation-ready warehouses and increasingly partnering with third-party logistics providers to build more flexible and resilient supply chains, rather than rapidly expanding footprints.”
