The European retail sector, encompassing 3.6 million businesses and contributing significantly to employment and economic value, is undergoing a profound transformation driven by digitalisation and shifting consumer behaviours. This Communication by the European Commission addresses how to make the retail sector fit for the 21st century by enhancing its competitiveness and removing structural and regulatory barriers across Member States.

The document identifies persistent restrictions that hinder retail performance—ranging from complex establishment procedures to disproportionate operational constraints—and outlines best practices to streamline regulation, foster multi-channel retail, and promote fairer access to the Single Market. Special attention is given to modernising the legal environment, ensuring proportionality of regulations, reducing administrative burdens, and supporting small retailers in adapting to e-commerce.

Furthermore, the Commission introduces the Retail Restrictiveness Indicator to monitor Member States’ regulatory environments and encourages reforms aligned with public policy objectives. It underscores the importance of coordinated efforts at EU, national, regional, and local levels to ensure a thriving, dynamic retail sector capable of driving innovation and providing consumers with better access, choice, and prices.