According to Cushman & Wakefield’s (C&W) European Retail Radar, which is based on an analysis of retail real estate leasing transactions across Europe, fashion remained the dominant retail sector in the first half of 2025, accounting for 37% of all space let. By number of transactions, the mixed-goods sector ranked second, representing 24% of the area let and 17% of transactions concluded between January and June. In third place by number of transactions, the food and beverage (F&B) and personal goods sectors share the podium, with 13% each.

According to João Esteves, retail director at Cushman & Wakefield in Portugal: “In Portugal too, real estate strategy remains central to success in the retail sector. High street retail continued to be the predominant format for new openings, with the foodservice segment standing out by accounting for 47% of new units opened in the first half of 2025,” he said in a statement.

“The leisure and culture segment accounted for 17% of openings, while fashion represented 9%, reflecting the growing diversity of the retail offer. Nevertheless, the retail parks format continues its strong growth trajectory, and shopping centres have shown strong consolidation over the last few years,” João Esteves said.

Over the last two years, Avenida da Liberdade, Lisbon’s pre-eminent luxury thoroughfare, has welcomed the Fashion Clinic and Paul & Shark flagships, and seen the reopening of the renovated Cartier and Longchamp boutiques, to name a few.

Across Europe, the fashion sector accounts for around 70% of the area let and of transactions concluded in the first half of the year, with fashion retailers responsible for more than a third of all transactions. For example, Mango, Jack & Jones, and several Inditex group brands — notably Zara and Massimo Dutti — were among the most active in the first six months of 2025.

Luxury-segment lettings rose by more than 50% year on year, particularly in Italy and the UK, with several contracts also signed in France and the Czech Republic.

The report also notes that the fashion industry’s momentum is underpinned by the high levels of tourism recorded across Europe, which are expected to reach historic highs in 2025, with the number of long-haul travellers estimated to exceed 2019 arrival levels for the first time since the lifting of COVID-19 restrictions, it concludes.