European Ecommerce Trends: JD.com Enters Europe, Retailers Must Adapt to Market Shifts and Gen Z Shoppers
UK eCommerce growth is slowing, but new opportunities are emerging. Sales growth is forecast to drop to around 3.6% in 2025 as consumer spending tightens and the market matures. Yet at the same time, eCommerce remains part of a $6 trillion global industry, and one demographic continues to reshape its future: Generation Z.
With more than 2.7 billion people shopping online, Europe’s eCommerce market is entering a new phase where mobile commerce, beauty, and tech dominate and Gen Z drives demand. These digital-native consumers shop across multiple devices, switch between apps and websites, and often remain anonymous during their research. For retailers, this means traditional growth strategies are no longer enough.
Meanwhile, competition is heating up. Chinese eCommerce giants such as JD.com are expanding into European markets, raising the stakes for retailers across the UK, France, Spain, and Italy. The winners will be those who can understand Gen Z’s shopping behaviours and use advanced tools to connect with them at the right time. This is where SaleCycle’s solutions become invaluable for merchants looking to stay ahead.
Ecommerce Growth vs Physical Retail in Europe and the UK
Ecommerce is set to far outpace physical retail in Europe over the next five years. According to Forrester research forecasts, online sales across the five largest European economies will grow at a compound annual growth rate (CAGR) of 7.8%, rising from €389 billion in 2024 to €565 billion by 2029. In contrast, offline retail is expected to expand by just 1.7% CAGR over the same period.
The United Kingdom is leading this digital shift. By 2029, eCommerce will account for 32% of total retail sales, up from 27% in 2024. Germany is also seeing strong momentum, with digital’s share of retail increasing from 16% to 21%, while France will grow from 14% to 17%.
Driving much of this growth is mobile commerce. In the UK, nearly 60% of online purchases are made via mobile devices, creating a mobile-first environment that challenges retailers to engage customers seamlessly across multiple channels.
For merchants, the message is clear: while eCommerce growth is accelerating, successful retailers are those who blend digital and physical touchpoints into integrated omnichannel strategies. This hybrid approach ensures shoppers get the convenience of online while still benefiting from in-store experiences.
European Ecommerce Growth Cooling: What Retailers Need to Know
After years of rapid expansion, European eCommerce growth is slowing as markets mature. Online penetration has levelled off in many regions, creating fresh challenges for retailers that had grown used to double-digit increases.
In the UK, eCommerce sales growth is forecast to fall to just 3.6% in 2025, as discretionary spending is squeezed and the market stabilises. Across Europe, several forces are contributing to this cooling effect, from economic uncertainty and persistent inflation to cautious consumer sentiment. According to recent McKinsey research, shoppers remain wary of rising prices and fragile economic conditions.
Another key factor is market saturation. With online shopping already well established in leading European markets, the focus is shifting from expanding the pie to winning a bigger slice. Retailers now face tougher competition for the same customers, driving up acquisition costs.
To stay competitive, merchants are turning to advanced solutions such as anonymous website visitor tracking and identity resolution. These technologies help identify intent signals earlier in the customer journey, allowing retailers to re-engage shoppers who would otherwise remain invisible. In a cooling market, this type of precision targeting is fast becoming a critical advantage.
Gen Z: Driving Ecommerce Growth in a Cooling Market
While overall eCommerce growth is slowing, Generation Z is emerging as the sector’s strongest growth engine. By 2029, nearly 95% of Gen Z will be digital buyers, bringing unprecedented levels of digital fluency into retail.
This generation’s spending power is expanding as older Gen Z members advance in their careers. Already, 27% have purchased new or second-hand products via mobile in the past week, while 32% regularly shop or browse on their phones. Their complex, mobile-centric journeys challenge traditional tracking methods but offer rich opportunities for retailers who adapt.
Social commerce is another defining trait. More than a quarter of Gen Z say that they discover products through social platforms, turning Instagram, TikTok, and other apps into essential shopping channels. In fact, Gen Z in North America and Europe is 16% more likely than the average consumer to buy products through Instagram.
Payment preferences also set this group apart. Buy Now, Pay Later (BNPL) services such as Klarna and Afterpay are surging, with UK adoption jumping 16% since 2021. Flexible options are becoming a baseline expectation for younger shoppers.
Perhaps most critically, Gen Z is value-driven consumers. Nearly 45% of Gen Z adults participated in boycotting a brand between October 2024 and April 2025, while almost 60% of US Gen Z prefer brands that align with their personal values. For retailers, this highlights the need to integrate ethical practices, transparency, and brand purpose into every stage of the customer experience.
How Gen Z Shops: Anonymous and Cross-Platform
For retailers, understanding Gen Z’s shopping behaviour means moving beyond the idea of a simple, linear purchase path. This generation navigates complex, multi-touchpoint journeys that span devices, platforms, and time, often while remaining anonymous.
Anonymous browsing is a defining trait. Unlike older shoppers who tend to create accounts early, Gen Z consumers often research products across multiple apps and websites without revealing their identity. They compare prices, read reviews, and seek social proof while staying invisible to traditional tracking methods.
Cross-device journeys add another layer of complexity. A typical Gen Z path might start with discovery on social media, continue with product research on desktop, involve peer consultations on messaging apps, and finish with a purchase through a mobile app. Each stage can occur on different devices, at different times, and in different contexts.
Mobile-first shopping is expanding into new categories. Mobile grocery shopping has grown by 40% since 2021, reflecting Gen Z’s willingness to buy traditionally offline categories online. This signals a comprehensive digital-first mindset that applies across product segments.
Finally, Gen Z’s research-intensive habits create both opportunities and challenges. They place high value on peer recommendations, influencer input, authentic reviews, and brand transparency. However, because this research happens across fragmented channels, delivering consistent and personalised experiences during their extended consideration phase remains a significant challenge for retailers.
Solving Gen Z’s Ecommerce Challenges: From Anonymous Visitors to Omnichannel Marketing
Engaging Gen Z shoppers requires more than traditional eCommerce tactics. Their anonymous browsing, cross-device journeys, and high cart abandonment rate mean retailers need advanced tools to connect effectively with this audience.
One critical capability is anonymous website visitor tracking. With Gen Z often researching products without logging in or creating accounts, solutions such as identity resolution can help identify up to 70% of otherwise anonymous traffic. This transforms unknown visitors into actionable insights, allowing retailers to recognise returning shoppers across devices and sessions.
Equally important is AI customer segmentation. Rather than treating Gen Z as a single group, AI-driven algorithms create micro-segments based on behaviour, preferences, and engagement patterns. This enables highly personalised experiences that resonate with different subgroups, from values-driven buyers to mobile-first bargain hunters.
Addressing the cart abandonment rate is another key challenge. Gen Z are research-heavy shoppers who often leave baskets while comparing alternatives. Advanced abandoned cart recovery strategies use smart timing, personalised messaging, and multi-channel outreach to bring them back. Within this, abandoned basket emails can play a powerful role, especially when they incorporate dynamic content, social proof, and real-time inventory updates that speak directly to Gen Z’s decision drivers.
Finally, consistent engagement requires a seamless omnichannel marketing approach. Coordinating email, SMS, social retargeting, and on-site personalisation ensures that Gen Z customers experience coherent messaging wherever they shop. Increasingly, WhatsApp marketing is also vital, as younger consumers prefer messaging platforms over traditional email for updates, recommendations, and exclusive offers.
Chinese Ecommerce Giants Expand into Europe: JD.com Raises the Stakes
Europe’s eCommerce market is facing unprecedented disruption as Chinese online giants accelerate their expansion. Companies such as JD.com are bringing global expertise, advanced logistics, and substantial investment into the region, signalling that eCommerce is not just the future of retail, but a battleground for international competition.
JD.com has already begun piloting its Joybuy platform in the UK, marking a significant step into direct competition with established European retailers. Far more than just another marketplace, Joybuy brings with it sophisticated data analytics, strong logistics capabilities, and deep financial backing.
The company’s ambitions are further underscored by its acquisition strategy. JD.com has announced its intention to acquire shares in CECONOMY, the parent company of MediaMarkt and Saturn, at €4.60 per share, representing a €2.2 billion investment. If completed, this deal would instantly provide JD.com with access to more than 1,000 physical stores across 11 European countries, combining strong eCommerce channels with established retail infrastructure.
JD.com’s European push is not limited to acquisitions. On 23 August 2025, Joybuy officially launched in Germany as a broad marketplace covering groceries, consumer electronics, and general merchandise. This comprehensive approach puts pressure on European incumbents across multiple categories at once.
Supporting this is JD Logistics, which plans to double overseas warehouse capacity by 2025. With nearly 100 bonded, direct-mail, and overseas facilities spanning more than 10 million square feet, JD.com is building delivery standards that many European competitors will struggle to match.
Yet expansion has not been without challenges. Negotiations with Sainsbury’s over a potential Argos deal collapsed after disagreements on revised terms, and JD.com confirmed it would not buy Currys, highlighting that even with deep resources, navigating Europe’s retail landscape requires more than capital alone.
E-commerce as the Future: Strategic Lessons for European Retailers
European retailers now face a unique strategic environment. Slowing growth, the rising influence of Gen Z, and increasing competition from Chinese eCommerce giants are converging to redefine the rules of success. In this landscape, e-commerce is clearly the future of retail, and technological capabilities are becoming more critical than traditional approaches.
Market maturation, combined with Gen Z’s complex shopping behaviours, means broad-based marketing is no longer enough. Retailers must identify individual customers across anonymous browsing sessions, understand their preferences, and deliver personalised experiences that build authentic connections.
Competing effectively requires more than basic eCommerce platforms. Advanced capabilities such as identity resolution, AI customer segmentation, omnichannel marketing, and abandoned cart recovery systems are now essential. Retailers who invest in these technologies early can establish sustainable competitive advantages in increasingly crowded markets.
Chinese competitors raise the stakes further, driving higher expectations for delivery speed, product selection, and digital experience quality. European retailers must meet these standards while maintaining profitability and differentiating their brand. This challenge calls for strategic investments in technology, logistics, and customer experience.
Long-term success will come to those who can adapt to evolving consumer preferences, technological innovation, and competitive pressures. Flexible technology platforms, data-driven decision-making, and customer-centric organisational cultures are the foundations for sustained growth in Europe’s rapidly changing eCommerce landscape.
Preparing for the Future of European Ecommerce
Europe’s eCommerce landscape is at a pivotal moment. Traditional growth patterns are moderating, but Generation Z’s digital-first behaviour and increasing spending power offer unprecedented opportunities for retailers that can engage this demographic effectively.
Meeting Gen Z’s expectations requires more than conventional eCommerce platforms. Sophisticated solutions such as anonymous website visitor tracking, identity resolution, AI customer segmentation, abandoned cart recovery, and omnichannel marketing, as offered by platforms like SaleCycle, provide retailers with the tools to understand and respond to multi-device, research-intensive shopping journeys.
At the same time, the arrival of Chinese eCommerce giants like JD.com into European markets is raising competitive stakes. Their technological capabilities, logistics infrastructure, and marketplace scale highlight the importance of advanced systems and seamless customer experiences. Retailers who invest strategically in these areas will be better positioned to protect market share and capture growth in an evolving landscape.
Ultimately, success in tomorrow’s European eCommerce market will belong to those who combine technological sophistication with authentic brand values, creating experiences that resonate with Gen Z while appealing to broader audiences. Retailers who embrace complexity, leverage advanced solutions, and prioritise customer-centric strategies will transform challenges into competitive advantages.
The transformation of European eCommerce has only just begun. The question for retailers is no longer if change will continue, but who will lead in shaping the future of digital commerce.
FAQ: European Ecommerce, Gen Z and Competitive Trends
How fast is UK eCommerce growing in 2025?
UK eCommerce growth is slowing to around 3.6% in 2025 due to market maturity and reduced discretionary spending, though opportunities remain in mobile commerce and Gen Z-focused sectors.
Which European countries are leading in eCommerce growth?
The UK, Germany, and France lead Europe, with ecommerce expected to reach 32%, 21%, and 17% of retail sales respectively by 2029, driven by mobile, tech, and Gen Z adoption.
What role does Generation Z play in European eCommerce?
Gen Z drives growth with mobile-first, social-savvy shopping habits, research-intensive journeys, and a preference for flexible payments and values-driven brands.
How do Gen Z shoppers behave online?
They browse anonymously across multiple devices, compare prices, check reviews, and value peer recommendations, creating complex journeys that challenge traditional tracking.
What technologies help retailers engage Gen Z?
Tools like anonymous visitor tracking, identity resolution, AI segmentation, abandoned cart recovery, omnichannel marketing, and WhatsApp marketing help retailers personalise and convert Gen Z shoppers.
Why is JD.com entering European markets important?
JD.com’s expansion via Joybuy and acquisitions like CECONOMY raise competition, bringing advanced logistics, marketplace scale, and digital experience expectations that challenge local retailers.
How is mobile commerce affecting European retail?
Nearly 60% of UK online purchases are mobile. Mobile-first behaviour is expanding into groceries, tech, and lifestyle categories, creating new opportunities for retailers.
How can retailers reduce cart abandonment with Gen Z?
Strategies include abandoned cart recovery, personalised messaging, social proof, mobile optimisation, and omnichannel outreach to re-engage research-focused Gen Z shoppers.
What is the impact of Chinese eCommerce competition in Europe?
Chinese giants like JD.com raise consumer expectations for delivery speed, product selection, and digital experiences, forcing European retailers to innovate and invest in tech and logistics.
What strategies will help retailers succeed in Europe’s evolving eCommerce market?
Retailers should combine advanced technology, data-driven insights, omnichannel experiences, and brand values to capture Gen Z and broader audiences while staying competitive.
