What: E-commerce in France is set to reach EUR 175.3 billion in turnover in 2024, a 9.6% increase from 2023, driven by a 6% rise in product sales after years of decline.

Why it is important: This growth signals a stabilisation in consumer spending after inflationary pressures and economic instability, marking a return to 2021 levels for product sales and offering renewed opportunities for retailers in an evolving e-commerce landscape.

French e-commerce is experiencing a revival, with product sales growing by 6% in 2024, marking a recovery after consecutive years of decline. The total e-commerce turnover, encompassing products and services, is projected to hit EUR 175.3 billion, reflecting a 9.6% year-on-year increase. While services dominate the market (62%) with 12% annual growth, product sales have returned to 2021 at EUR 66.9 billion. Consumer confidence has improved with inflation easing to 2%, sparking a 10% rise in transactions and annual online spending of EUR 4,216 per shopper. Categories like beauty (+4%) continue to thrive, driven by social media influence, while sectors such as fashion and high-tech have stabilised after periods of decline. However, furniture remains in negative territory (-6%) due to second-hand competition and a weak real estate market. This resurgence highlights the importance of adapting to evolving consumer behaviours and leveraging digital platforms to meet demand.

IADS Notes: The French e-commerce revival in 2024 builds upon several key developments from the past year. In December 2024, department stores demonstrated strong performance with 5.8% growth, while online fashion retailers faced challenges during summer. The market has shown increasing polarisation, with traditional retailers adapting through omnichannel strategies, as evidenced by Galeries Lafayette's 15% sales increase in autumn 2024. This transformation reflects broader changes in consumer behaviour, with both online and offline channels finding new equilibrium in the post-pandemic retail landscape.

French e-commerce hits EUR 175 billion in 2024 as product sales rebound