Growth rates in non-food retail are stabilizing, but the road to recovery remains uneven. McKinsey and EuroCommerce surveyed both retailers and consumers, identifying six core strategies for the future.
Unevenly distributed growth
The European non-food retail sector has undergone major transformations in the past four years. Faced with a volatile macroeconomic environment, supply chain disruptions, and shifting consumer behavior, the sector has had to adapt and restructure. Although growth appears to be stabilising just below pre-Covid levels, differences in recovery rates between categories and countries are significant.
Disparities between industries are also considerable. Pet care, for example, is outperforming 2019 levels in all markets surveyed, and demand for beauty and personal care products is expected to continue growing at 2% a year. However, other segments, such as furniture and DIY products, lag behind.
Disloyal consumers
The State of Retail 2024 report, which surveyed more than 15,000 Europeans, shows that consumer behaviour is increasingly reshaping the sector. Among the notable trends:
