LONDON — U.S. retailers can’t get enough of the U.K. and continental Europe and are rapidly planting their flags in key cities, according to new research by Savills set to be published Monday.
U.S. retailers, including food and beverage concepts and fashion brands, now represent the single largest international origin market, responsible for 25 percent of all new openings across Europe in 2025, a 14 percent uptick compared with last year.
Savills said macroeconomic and geopolitical factors are fueling the wave of expansion, with U.S. businesses accelerating their European growth strategies due partly to trade and tariff drama, and “softening consumer confidence in the U.S. domestic market.”
Inside the Arc’teryx store in Milan.
Courtesy of Arc’teryx
The global real estate agency and adviser said the new EU-U.S. trade agreement has further bolstered sentiment among American retailers, paving the way for continued momentum into 2026.
As reported, the U.S. will apply a 15 percent tariff on most EU goods, lower than President Donald Trump’s original plan for 30 percent, but higher than in the past. In the U.K., the tariff is 10 percent on most goods landing in the U.S., higher than in past years.
Larry Brennan, head of European retail agency at Savills, said the company is seeing “a decisive shift in global retail strategy. For many U.S. brands, Europe is no longer just a growth market — it’s becoming a strategic priority.”
He added the combination of “favorable trade conditions, resilient consumer demand in key cities, and a hunger for differentiated retail experiences” has been driving the momentum.
Marie Hickey, director of commercial research at Savills, said the company expects the U.S. expansion trend to continue “considering the scale of recent funding activity into this space.”
Canadian retailers are also ramping up their openings in the U.K. and continental Europe. In 2025, they represented 4 percent of new international brands entering the region.
Savills pointed to the Canadian performance-led lifestyle brands such as Arc’teryx and Lululemon, both of which opened in Milan this year, attracted by the city’s “blend of fashion credibility and affluent footfall.”
Over the past two years, North American athleisure brands including Vuori, Alo Yoga, Lululemon and On Running have also flooded London’s Regent Street, opening shops and flagships.
The Savills report said French, Italian, Spanish and other European brands continue to dominate regionally, accounting for 56 percent of new entrant store openings across the region. Savills said those openings are “indicative of the strength of the fashion sector across those markets.”
Vuori’s store on Regent Street in London.
Courtesy.
Unlike their North American competitors, Chinese brands are “recalibrating” their European strategies. The Chinese represented 6 percent of new international brand entrants in 2025, slightly down on 7 percent in 2024.
Historically concentrated in London and Paris, Chinese brands are now expanding into cities such as Berlin, Amsterdam and Zurich in a bid to diversify revenue streams and reduce reliance on domestic consumers post-pandemic, according to Savills.
In 2025 alone, Pop Mart, Miniso and BYD have launched in these cities, with the toys and hobby segment emerging as a “standout” export category.
A scene from Pop Mart’s opening in Berlin.
dpa/picture alliance via Getty I
In a bid to take advantage of the surge in U.S. interest in Europe, Savills has launched a U.S. retail advisory services platform. In a separate statement on Friday, the company said the new service line will be led by Todd L. Siegel, who will serve as president, U.S. retail.
Siegel will collaborate with the global retail team, which is situated across key markets in Canada, Europe, the Middle East and Asia. Together they will offer “boutique consultancy services with an extensive international reach.”
Janet Woods, president, Savills North America, said “Our clients have been asking for more integrated, globally connected retail advisory, and this new service delivers that.”
