The European retail landscape is in the midst of a profound transformation. As digital commerce accelerates, retailers across the continent are not only tasked with growing their e-commerce channels but also with making them sustainably profitable. This challenge is compounded by a complex regulatory environment, diverse consumer behaviors, and the increasing demand for seamless omnichannel experiences. At Publicis Sapient, we help European brands harness data-driven transformation to thrive in this dynamic environment—balancing growth, compliance, and customer-centricity.
Recent research with retail decision-makers across Europe reveals a clear consensus: the pandemic has permanently changed the nature of retail, with 96% expecting e-commerce to continue its upward trajectory. Yet, this growth brings new pressures. Nearly half of European retailers say their e-commerce business is less profitable than their in-store operations, and a quarter report that e-commerce is not profitable at all. The challenge is particularly acute for e-commerce-only retailers, who are twice as likely as their brick-and-mortar peers to struggle with profitability and investment.
What’s driving this gap? European retailers face a unique set of hurdles:
To address these challenges, European retailers are prioritizing investments in:
With third-party cookies disappearing and privacy expectations rising, first-party data has become the foundation for sustainable growth. European retailers are increasingly:
European consumers are not a monolith. Preferences, languages, and shopping habits differ significantly across markets. Leading retailers are:
European consumers are true omnichannel shoppers, seamlessly moving between online and offline experiences. Retailers are investing in:
European retailers are increasingly forming cross-functional teams—bringing together stakeholders from brand, merchandising, technology, analytics, and customer support to own KPIs and drive continuous improvement. By focusing on a small set of overarching metrics—such as quality traffic, conversion, and average order value—teams can act quickly and scale successful solutions. Rapid experimentation, real-time measurement, and iterative optimization are essential for adapting to changing consumer behaviors and market conditions.
A leading European retailer, Carrefour, undertook a sweeping digital transformation to address declining market share and outdated digital capabilities. By breaking down organizational silos, migrating to cloud infrastructure, and building advanced analytics and customer data platforms, Carrefour created a single digital entry point for customers and integrated web, mobile, and in-store experiences. The results: improved customer satisfaction, accelerated e-commerce growth, and a revitalized organizational culture—demonstrating that profitability is not just about cost-cutting, but about building the right capabilities and mindset for digital retail.
European retail is at a crossroads. The winners will be those who can turn data into insight, insight into action, and action into profitable growth—while respecting the privacy and preferences of every customer. By investing in the right capabilities, embracing cross-functional collaboration, and partnering with experts who understand the nuances of the European market, retailers can unlock the full potential of data-driven experience transformation.
At Publicis Sapient, we combine deep retail expertise with advanced data, technology, and experience design capabilities to help European brands:
Ready to accelerate your journey? Connect with Publicis Sapient to learn how we can help you build the data-driven, omnichannel retail experiences that European consumers demand—and that your business needs to thrive.