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Physical Retail Stores Make a Comeback in Europe Amid Growing E-commerce Competition

European retailers are expanding physical stores to boost online sales, counteracting rising competition from e-commerce giants like Shein. Data shows that online sales can increase by 10–20% within 20 minutes of proximity to a store, making physical locations a valuable part of omnichannel strategies. Companies like Decathlon and Inditex are creating engaging, interactive spaces that bridge digital and physical shopping, drawing in customers.

Physical Retail’s Role in Supporting Digital Sales

Retail spaces across Europe are expected to grow by 2.7% by 2028. Decathlon added 80 stores this year and introduced hubs for equipment rentals, repairs, and in-store product testing. For example, Decathlon’s Rome store offers free ping-pong, enhancing the shopping experience. Italy’s Cisalfa plans to open or refurbish 10 stores, underscoring the importance of face-to-face customer interaction that e-commerce lacks. Meanwhile, Zalando, a digital-first retailer, has expanded its physical presence to 15 German locations, catering to the demand for omnichannel experiences.

Retailers See Physical Stores as a Multi-Channel Driver

Studies indicate that brick-and-mortar locations drive multi-channel engagement, with closures impacting revenue both online and offline. Inditex offers group-friendly fitting rooms with touchscreens for size requests, while Zalando combats fast-fashion competitors like Shein with pop-up stores across Europe.

Why Shoppers are Returning to Physical Stores

Consumers are gravitating back to in-person shopping, enjoying instant gratification and convenience. RBC analysts note that some people prefer the reliability and immediacy of physical stores, especially for last-minute purchases.

Cyprus Economy Outperforms EU Benchmarks With 4.5% Quarterly Growth

The Cypriot economy recorded an impressive 4.5% year-on-year growth in the fourth quarter of 2025, according to preliminary estimates from the Statistical Service. This performance represents a notable acceleration, with a seasonally adjusted quarterly increase of 1.4% compared to the previous period.

Quarterly Performance Surpasses Expectations

Based on Eurostat data, Cyprus has significantly outpaced its European counterparts. While the Eurozone achieved an average growth rate of 1.3% and the European Union registered 1.5%, Cyprus clearly outperformed both. Such robust quarterly performance underlines the nation’s strategic economic positioning amid global market uncertainties.

Full-Year Projections And Fiscal Discipline

For the entire year 2025, growth is forecasted at 3.75%, exceeding earlier predictions from the Ministry of Finance and several domestic and international agencies, which had estimated an increase between 2.9% and 3.5%. This optimistic projection is supported by a low inflation environment and conditions of near-full employment.

Sustainable Growth Amid Global Uncertainty

Despite increased international volatility, Cyprus continues to demonstrate a resilient economic dynamic. Experts assert that a commitment to prudent and disciplined fiscal policies will bolster the nation’s ability to maintain medium-term growth rates above 3%. This strategic approach offers a strong competitive edge, much like other success stories in high-growth markets where sound economic management has proven vital.

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