America’s leading retail giants are now treating Europe as the centerpiece of global expansion, not just a secondary market. The latest press release and research from Savills signals a dramatic pivot: U.S. retailers, including fashion and food brands—account for 25% of all new store openings in Europe this year, a surge that marks a 14% increase over 2024. For many American companies, this is more than just a trend, it’s a deliberate strategy driven by changing global demand, trade policy, and the search for long-term resilience.
Why Europe Became a Strategic Priority
The underlying reasons for this robust expansion are both economic and geopolitical. The cooling of consumption in the U.S. domestic market has forced retailers to seek more stable and dynamic growth environments. Europe, with its resilient urban centers and consumer base, is now seen as an attractive alternative.
Favorable new trade conditions further accelerate this trend, thanks to a recent agreement between the European Union and the United States. Now, tariffs for most European imports have been set at 15%, a significant drop from the 30% previously proposed. For the United Kingdom, import taxes into the U.S. currently stand at 10%, slightly up from past years, but maintaining stability is seen as a win for American companies.
Capital Cities Are the New Epicenter
The main targets for American investment include London, Milan, Paris, and Madrid. These cities have proven their vitality, with prominent shopping streets such as London’s Regent Street now hosting flagships from U.S. powerhouses like Alo Yoga, Lululemon, and On Running. Over the past two years, these brands have transformed the British capital’s retail landscape, while similar moves are underway in Milan’s fashion district and Paris’s legendary shopping corridor.
Savills’ Marie Hickey, director of commercial research, described the future outlook:
“The scale of recent investment in this segment indicates that American expansion into Europe is just beginning.”
Canada and China Add to the Mix, But Europe Still Dominates
While U.S. brands claim a quarter of new international openings, Canadian retailers have also exhibited strong growth, accounting for 4% this year. Lifestyle and performance brands such as Lululemon and Arc’teryx, both making major moves in Milan, are finding success pairing fashion credibility with European affluence.Yet European brands remain the dominant market force, responsible for 56% of all new international openings. This reflects the enduring strength and dynamism of the fashion sector in the region, particularly among French, Italian, and Spanish maisons.
By contrast, Chinese brands are recalibrating their strategies, dropping slightly from 7% in 2024 to 6% in 2025. With companies like Pop Mart and Miniso diversifying across cities such as Berlin, Amsterdam, and Zurich, the focus is shifting from traditional hubs (London and Paris) to secondary cities and new consumer groups.
Trade Policy’s Role in Boosting Confidence
Savills argues that the new EU-U.S. agreement, which lowered tariffs and stabilized trade barriers, has been fundamental in boosting the confidence of U.S. retailers. These regulatory changes follow years of uncertainty, enabling America’s largest brands to secure long-term retail visibility and profitability on the continent.
Larry Brennan explained, “The European market has gone from opportunity to strategic priority for U.S. companies.”
He and other Savills leaders point to favorable business climates, resilient consumer demand, and the growing appeal of differentiated physical shopping experiences.
The Long-Term Impact
Industry analysts now predict Europe will see continued dominance from European designers, with American brands sustaining a steady pace of new openings. The rise in Canadian presence is a development to watch, especially as performance and athleisure cross over with fashion in high-profile locations.
Europe’s major capitals, led by London, Milan, Paris, and Madrid, are cementing their roles as hotspot destinations for retail investment and flagship launches. Urban shopping districts, once threatened by online commerce, are being revitalized as global brands chase direct engagement and premium, memorable consumer experiences.
Looking Beyond 2025
Marie Hickey affirmed, “The scale of recent investment in this segment indicates that American expansion into Europe is just beginning.”
Chinese brands will likely introduce fresh concepts to broader regions in response to shifting market dynamics, while Canadian and American retailers focus on establishing sustainable European portfolios, regardless of changes to domestic consumer sentiment or international policy.
