Store Expansion and AI Adoption Shape European Retailers’ Growth Plans, Finds CBRE

European retailers continue to prioritise physical expansion despite a more challenging economic backdrop and growing investment in AI and digital capabilities. Nearly two thirds (65%) still plan to expand their store portfolios in the near term, creating the potential for up to 8,000 net additional stores across Europe, according to CBRE's European Retail Occupier Survey 2026.

More than nine in ten (93%) retailers intend to maintain or increase the size of their stores, while 91% say physical retail will remain a core part of their business strategy. Retailers continue to view stores as a critical driver of performance, with 76% rating brick-and-mortar retail as more effective than online channels for consumer engagement and 56% as more effective for sales productivity.

The survey also shows sustained demand for high-quality retail destinations. Catchment and demographics, together with footfall, are reported as the most important factors when selecting new locations. Regional shopping centres are now retailers’ preferred location for expansion, cited by 72% of respondents, ahead of retail parks (53%) and city centre high streets (52%).

Alongside investment in physical stores, retailers are accelerating the adoption of AI. More than half of respondents (52%) report to have already implemented AI solutions, up from 25% in 2024, while a further 43% are actively exploring the technology. Product personalisation and recommendation tools (69%) and customer service chatbots (63%) are the most common use cases for AI.