CBRE’s research suggests that retailers are accelerating their use of AI without pulling back from physical stores, showing investment in technology and store expansion increasingly happening in parallel.
CBRE’s 2026 European Retail Occupier Survey, which includes responses from more than 70 pan-European and global retailers representing around 150,000 stores worldwide, suggests more than half (52%) of retailers have already implemented AI, up from 25% in 2024, while another 43% are actively exploring the technology. At the same time, 65% plan to expand their store portfolios in the near term, which CBRE says could create up to 8,000 net additional stores across Europe.
Some 91% of respondents said stores remain core to their business strategy, while 93% intend to maintain or increase the size of their stores. Stores are also still seen as particularly important for customer engagement. More than three quarters (76%) rated physical retail as more effective than online channels for engaging consumers, while 56% said stores were more effective for sales productivity.
AI investment is meanwhile moving beyond experimentation. Among retailers already using the technology, product personalisation and recommendation tools are the most common use case, cited by 69%, followed by customer-service chatbots at 63%.
Alex Ozga, Associate Director, European Retail and I&L Research, Europe at CBRE, said: “The pace of AI adoption among retailers has increased significantly over the past two years.” He said the shift is moving retailers from experimentation towards deployment, with businesses combining digital capabilities with investment in store fit-outs and technology rather than reducing the role of physical retail.
Regional shopping centres were the preferred destination for expansion among 72% of respondents, ahead of retail parks at 53% and city-centre high streets at 52%.
Tom Dancer, Head of Retail Occupier, Europe at CBRE, said: “Physical stores are a key part of that strategy, helping retailers strengthen their market presence.” He added that demand for physical retail space remains resilient.
