What Direction is European Retail Going in 2026
Europe’s e-commerce and retail market continues to expand rapidly, with both established and emerging regions driving record gross merchandise value (GMV) growth. Western Europe’s top five e-commerce markets, Germany, France, Belgium, the Netherlands, and Switzerland, account for 73% of total GMV. However, Central and Eastern Europe's GMV growth is accelerating even faster at 59%, while Nordic countries' GMV is growing at 37%.
Several smaller but high-potential European markets, including Luxembourg, Norway, Cyprus, Greece, and Portugal, have each achieved over 100% GMV growth, highlighting major opportunities for cross-border e-commerce, retail expansion, and private label product sourcing across the wider European market, not just traditional retail hubs.
Three high-growth e-commerce product categories are outperforming the wider retail sector. Underwear and intimate apparel have grown by 45%, making it the fastest-growing fashion sub-segment. Beauty and personal care products are up 16%, while sportswear and activewear have increased by 10%. While fashion remains the largest overall online retail category, demand is shifting toward value-driven, utility-focused, and performance products rather than trend-led items. Offering strong opportunities for private label, white label, and contract manufacturing brands to move into these markets.
Product discoverability in e-commerce is also evolving. Search algorithms, AI shopping tools, and social commerce platforms are now the primary drivers of product visibility. Customer demand is increasingly generated within digital retail ecosystems, AI search results, and social media platforms before shoppers ever reach a product page. This makes SEO for e-commerce, structured product data, marketplace optimisation, and social commerce presence critical for brand growth.
Retailers and online sellers with accurate real-time product data, inventory feeds, enriched product content, and consistent multi-channel pricing achieve stronger SEO rankings and better visibility across search engines and marketplaces. Strong product data infrastructure also supports upcoming European retail compliance requirements, including the Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passports, which will become increasingly important for European market access by 2027.
What Does This Mean for E-commerce Brands, Retailers, and Private Label Suppliers?
Fast-growing European retail markets are opening new opportunities for market entry, product sourcing, and brand expansion. With apparel, especially underwear and sportswear, being the leading category growth, these sectors present some of the strongest ROI opportunities for 2026 across European e-commerce and retail.
To maximise discoverability and product visibility, there are new avenues that must be addressed. E-commerce stores rely on website and product SEO, which is now generated from more places than ever before. Social media and AI presence are necessary in 2026, with accurate back-end data also proving invaluable.
Businesses looking to expand into European e-commerce, retail distribution, and private label markets can connect directly with qualified buyers and sourcing partners at White & Private Label Expo, where 16,000+ e-commerce and retail decision-makers from 80+ countries attend to discover new products, manufacturers, and suppliers.
