The industry supports about 27 million jobs across the EU — amounting to one out of every eight people, according to the report, titled The Socio-Economic Impact of European Retail Real Estate. Sales of goods and services in the EU generated nearly €1.73 trillion in taxes in 2016, and the industry creates considerably more revenue when property taxes and income taxes are included.

“The European retail real estate industry represents a major sector of the economy and plays a vital role in society,” writes Bill Kistler, ICSC’s executive vice president and managing director for Europe, the Middle East and Africa.

Despite the media attention given to online retail, the vast majority (94 per cent) of retail sales across the EU were driven entirely or in part by physical stores in 2016, amounting to nearly €2.4 trillion, the report points out. In contrast, pure-play e-commerce sales that year amounted to €111.6 billion — just 4.4 per cent of total sales.

A sizable proportion of the EU’s merchandise, food-and-beverage and service sales took place in shopping centres in 2016, amounting to nearly €762 billion — 27 per cent of total retail turnover. Retail centres continue to evolve, increasing their leisure and food-and-beverage offerings — from 5 per cent a decade ago to between 10 and 15 per cent now in some markets, and that is anticipated to reach 20 per cent in some areas by 2025, the report says. Key data points may be viewed here.

Meanwhile, physical retail remains significantly more popular than online shopping across all age groups, according to the report.

Other indicators similarly pointed to bright outcomes for the industry.

“All the retailers we speak to and the research we do said that if the last five to ten years have been about investing in online, the next five to ten years will be about investing in-store,” said David Atkins, CEO of UK-based retail development firm Hammerson, as quoted in the report.

The full report can be accessed here.