European retail parks see strong returns amid shifting consumer demand

Retail parks emerged as the top-performing retail format in Europe in 2025, delivering a total return of 7.4%, according to a Savills report. Investment in the segment is projected to grow between 2% and 6% in 2026, potentially reaching between 8 billion and 8.3 billion euros.

Consumer demand is increasingly shifting toward value, discount, and variety categories. This trend is driven by higher household savings rates in the eurozone and increased consumer caution regarding high-value purchases. In the United Kingdom, the tenant mix has evolved, with discount food retail and variety stores gaining space previously held by bulky goods, home items, and electronics.

Modern retail parks are also diversifying their operator base to include health and beauty, fitness, leisure, and dining. Additionally, these locations are benefiting from omnichannel growth, serving as hubs for click-and-collect services, returns, and order fulfillment.