Luxembourg has experienced significant recent growth, driven by a tech-savvy population, high internet use, and strong purchasing power. The market, a major part of the retail sector, has grown exponentially, reaching over 912 million USD in the last four years, with expectations of surpassing 1,493 million USD by 2025 (Ecommerce News, 2023). Both domestic and international e-commerce have thrived, especially post-pandemic, leading to an 81 percent increase in online shopping users in 2021 (Statista, 2022). Luxembourg has made significant strides in broader technological advancements, particularly in finance and information technology. Initiatives like Technoport and Luxembourg City Incubator underscore the commitment to nurturing a thriving tech ecosystem, attracting startups and entrepreneurs. With a proactive stance on research and development, Luxembourg positions itself as a global player in space technology, fintech, artificial intelligence, blockchain, and cybersecurity (Mordorintelligence, 2023). As Luxembourg continues these advancements, it strengthens its position as a global tech innovator.
From traditional retail to the digital realm, Luxembourg residents have seamlessly transitioned to the contemporary lifestyle of online shopping. The convenience afforded by technology enables individuals to easily purchase groceries, medications, and a wide array of goods online. Despite approximately 70% of Luxembourg’s population still opting for Brick-and-Mortar stores (CBRE, 2019), a significant portion has embraced the ease and accessibility of online shopping. Notably, H&M, Coolblue, and HEMA stand out as the leading online clothing retailers in Luxembourg, responding to the surging demand for fashionable items (Glopal, 2021). Amazon serves as a prominent example of the pervasive growth of e-retailing, penetrating diverse market segments. Positioned as one of the largest e-commerce markets globally, Luxembourg holds the 79th spot in e-commerce rankings (ECDB, 2019), underscoring its rapid expansion. Technology continually evolves, and Luxembourg’s inclination towards embracing modern living aligns seamlessly with the growing prevalence of e-retailing. The integration of technology and modern consumer preferences has effectively propelled Luxembourg into the embrace of e-retailing.
