Asia Pacific is leading the charge in global retail innovation, according to Colliers’ latest report, “Global Retail: 2025 Trends & 2026 Outlook”. Despite geopolitical uncertainties and tariff risks, the region is at the forefront of omnichannel, social commerce, and tech-enabled retail, driven by Gen Z and a burgeoning middle class. The report reveals a 5% real retail spending growth in Asia Pacific, outpacing Europe, the US, and Canada, which show gains of 2–3%.
The report underscores the region’s dominance in integrating digital and physical retail, with store-based sales projected to grow by 20.4% and non-store sales by 43.4% by 2028. Kathy Lee, Head of Research and Retail Consultancy, noted, “Hong Kong’s retail market is showing cautious optimism as consumer confidence stabilises and tourism recovers.”
Key findings include the significant influence of Gen Z, which constitutes 47% of the global population in this demographic, driving mobile-first and influencer-led retail. The social commerce boom is particularly notable in countries like Indonesia, Thailand, Vietnam, and Malaysia, with platforms like TikTok Shop thriving.
The report also highlights the expansion of the middle class, with over 332 million new households added in the past decade and 352 million more expected by 2034. Retail real estate remains stable, attracting renewed investor interest, with retail accounting for 40% of Asia Pacific cross-border capital flows.
Looking ahead, retail sales in Asia Pacific are expected to remain steady into 2026, supported by stimulus measures in China, increased tourist spending in Japan and Singapore, and population growth in Australia. Despite challenges, the region’s retail sector is poised for continued momentum.
