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Local Retail, Global Trends -How Digital, Green and Skills Shifts in the EU are Reshaping SMEs in Towns and Cities
OECD
2026.02.11
The retail sector is undergoing rapid change. Digital and green transitions, demographic shifts and evolving consumer behaviour are reshaping how people shop and how businesses operate. These trends are particularly evident in towns and city centres, where retail plays a key role in economic and social life.

Small and medium-sized enterprises (SMEs) are at the core of this transformation. They represent the majority of retail businesses and jobs, but face increasing pressure from rising costs, technological change and shifting consumer and regulatory expectations. At the same time, SMEs are well positioned to adopt digital tools, pursue sustainable practices and contribute to local economic renewal, provided they have access to the right support and enabling conditions.

The report is structured in three main chapters. The first provides an overview of the EU retail ecosystem, analysing recent changes in the competitive environment for retail and wholesale SMEs and reviewing policy responses at both EU and national levels. The second examines employment trends in the sector, with a focus on evolving skill demands and workforce development. The third explores the role of urban policy in shaping vibrant retail spaces, particularly in supporting their adaptability and resilience amid ongoing structural shifts.