
Local Retail, Global Trends How Digital, Green and Skills Shifts in the EU are Reshaping SMEsinTowns and Cities OECD Studies on SMEs and Entrepreneurship Local Retail, Global Trends HOW DIGITAL, GREEN AND SKILLS SHIFTS IN THE EUARE RESHAPING SMES IN TOWNS AND CITIES This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed andarguments employed herein do not necessarily reflect the official views of the Member countries of the OECD. This document was produced with the financial assistance of the European Union. The views expressed herein can inno way be taken to reflect the official opinion of the European Union. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use ofsuch data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements inthe West Bank under the terms of international law. Note by the Republic of Türkiye The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no singleauthority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic ofNorthern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiyeshall preserve its position concerning the “Cyprus issue”. Note by all the European Union Member States of the OECD and the European UnionThe Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. Theinformation in this document relates to the area under the effective control of the Government of the Republic of Cyprus. Please cite this publication as: OECD (2026),Local Retail, Global Trends: How Digital, Green and Skills Shifts in the EU are Reshaping SMEs in Towns andCities, OECD Studies on SMEs and Entrepreneurship, OECD Publishing, Paris, https://doi.org/10.1787/55e2edec-en. ISBN 978-92-64-94872-3 (print)ISBN 978-92-64-81681-7 (PDF)ISBN 978-92-64-54229-7 (HTML) OECD Studies on SMEs and EntrepreneurshipISSN 2078-0982 (print)ISSN 2078-0990 (online) Photo credits:Cover © Kmatta/Getty Images Plus. Corrigenda to OECD publications may be found at: https://www.oecd.org/en/publications/support/corrigenda.html.© OECD 2026 Attribution 4.0 International (CC BY 4.0) This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/). Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of the original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword Retail is one of Europe’s most visible and vital economic sectors.It not only connects producers andconsumers, butalso shapes daily life in towns and cities. Today, the sector stands at a crossroads. Globaltrends such as digitalisation, e-commerce, evolving consumer behaviour and regulatory shifts aimed atgreening SME activity are reshaping how retail businesses operate, the skills they require, where theylocate and what they need to succeed. Smalland medium-sized enterprises(SMEs)are at the heart of this retail transformation.Representing the vast majority of retail businesses and jobs in the EU, they face growing pressure to adoptnew digital tools, implement sustainability practices and respond to changing local demand. The twintransition holds significant potential to revitalise the retail landscape, but it also risks leaving smaller,independent businesses behind. This report provides an in-depth analysis of how retail SMEs are navigating the twin tr