Italy Retail Market: Consumer Spending Trends, Omnichannel Expansion & Growth Outlook

According to IMARC Group's latest research publication, Italy retail market size reached USD 714.9 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 871.1 Billion by 2034, exhibiting a growth rate (CAGR) of 2.15% during 2026-2034.

How AI is Reshaping the Future of Italy Retail Market

• Italian retailers like Esselunga are rolling out AI-powered mobile apps that deliver personalized shopping recommendations and expand same-day delivery options in northern cities, making everyday grocery runs feel more tailored and convenient for busy customers.
• The country's overall AI market has surged to around €1.8 billion with nearly half tied to generative and hybrid tools, pushing retail players to adopt these technologies for better customer engagement and smarter operations across stores and online platforms.
• Major chains such as Coop and Esselunga dominate loyalty programs where AI analyzes purchase data to create customized offers, helping boost shopper retention and turn routine buys into more rewarding experiences.

Access the Latest 2026 Market Data & Forecasts

Italy Retail Market Trends & Drivers:

The Italian retail market continues to experience a pronounced shift toward digital channels, with e-commerce expanding rapidly as consumers embrace online convenience, mobile shopping, and seamless payment options. Traditional brick-and-mortar stores adapt by integrating omnichannel strategies that combine in-store experiences with digital touchpoints, allowing retailers to meet evolving preferences for flexibility and personalization. This trend strengthens particularly in fashion, electronics, and grocery sectors, where online platforms offer broader product access and faster delivery. Physical retail maintains relevance through experiential formats in prime locations, but overall growth increasingly relies on hybrid models that bridge online and offline worlds to retain customer loyalty and drive engagement across demographics.

Sustainability and ethical considerations increasingly shape consumer decisions in Italy's retail landscape, prompting retailers to prioritize eco-friendly products, responsible sourcing, and reduced environmental impact. Shoppers show growing preference for brands demonstrating transparency in packaging, supply chains, and social practices, influencing choices in food, fashion, and personal care categories. This driver encourages the rise of organic, locally sourced, and circular economy offerings, while private-label alternatives gain traction by aligning with value-conscious yet principled buying. Retailers respond by adopting greener operations and certifications, fostering trust and differentiation in a competitive environment where awareness of climate and ethical issues continues to rise among Italian consumers.

Experiential and premium retail formats thrive in key urban and tourist areas, attracting lifestyle-oriented brands focused on immersive shopping environments. High-street locations in cities like Milan and Rome draw sportswear, beauty, and luxury segments emphasizing innovation and customer interaction. Out-of-town retail parks and outlets benefit from renewed investor interest, supporting brand expansions and diverse concepts that enhance footfall. This driver stems from recovering confidence in physical presence combined with demand for unique, social shopping experiences that digital channels cannot fully replicate, enabling retailers to create memorable engagements and strengthen community ties in a maturing market.

Italy Retail Industry Segmentation:

The report has segmented the market into the following categories:

Product Insights:

• Food and Beverages
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture, Toys and Hobby
• Electronic and Household Appliances
• Others

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others

Regional Insights:

• Northwest
• Northeast
• Central
• South
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Italy Retail Market

• February 2026: AI integration scales as operational infrastructure in retail operations, enabling automated markdowns, enhanced supply chain visibility, and demand-driven inventory allocation across channels for improved efficiency and results-focused implementation.
• February 2026: Non-food vending machines experience a boom with innovative applications, including automated retail for cosmetics, electronics, and other categories, blending physical automation with digital experiences at events like Venditalia.
• January 2026: Retail loyalty programs expand significantly, with the market evolving through embedded schemes in routine shopping and payments, led by major players like Coop Italia and Esselunga in proprietary models to boost customer retention.
• 2025: Record investment inflows revitalize the sector, with retail capturing about 25% of total real estate transaction volumes at €3.1 billion (+20% year-on-year), highlighted by major shopping center acquisitions and yield compression signaling renewed institutional confidence and sector revaluation.
• 2025: Omnichannel models driven by AI and mobile dominance blur physical-digital boundaries, particularly in Food & Grocery, Fashion & Beauty sectors, with 60% of purchases now via smartphones and e-commerce contributing to broader value commerce shifts toward data sharing, automation, and sustainability levers.

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