According to a report of Oxford Economics and JDM retail, Paris and London are the most attractive urban centers for the expansion of the retail sector in Europe. These cities offer broad markets, great economic dynamism, and a solid business environment, factors that place them at the top of the European Retail City Index.
With a score of 79 out of 100, Paris leads the classification by capturing more expense than London, which obtained 78 points. The French capital stands out for its high consumption growth potential, while London has a most favorable business environment. Both cities benefit from the presence of international brands and of an urban structure that drives consumption both in the center and in its surroundings.
Madrid and Barcelona: different positions in the ranking
In the Spanish context, Madrid positions itself well among the big European cities, while Barcelona faces challenges that limit their performance in the ranking. Madrid stands out as a relevant market for retail trade, benefiting from a significant volume of available spending and a relatively stable business structure. However, Barcelona, despite being one of the main purchasing centers in southern Europe, it occupies only the 20th position in the general index.
The Catalan city is affected by factors such as a less favorable business environment and less dynamic economic growth. Besides, the study indicates political instability related to the independence movement as an element of uncertainty for the retail sector. This situation could be affecting the investment decisions of large international brands, which seek more predictable and stable environments to expand their businesses.
Other European cities and the sector’s perspectives
Behind Paris and London, Berlin appears in third place, being considered a multifaceted city and well positioned in the three categories analyzed in the study. Copenhagen and Dublin surprise when presenting results greater than their market size, thanks to their rapid economic growth and a favorable business environment. On the other hand, Milan, although it is one of the main luxury poles in Europe, faces governance-related challenges and aging population.
The study also reveals a trend of contraction of prime commercial areas throughout Europe, with a growing division between the main urban centers and secondary commercial areas. However, analysts are optimistic about European economic recovery in the coming years, driven by the strengthening of consumption and stability of macroeconomic indicators.
In conclusion, Madrid remains a relevant destination for European retail trade, while Barcelona faces additional challenges that hinder their growth in the sector. Despite the obstacles, the expected economic recovery could offer new opportunities for both cities in the coming years.