A new European Union initiative recognising cities that offer exceptional support for small retailers and vibrant city centres in defiance of digital competition and shifting customer habits, has announced its first winning cities and a call for new applications for the 2027 awards.
The European Capitals of Small Retail (ECoSR) aspire to become an award equivalent to the prestigious European Capital of Culture and European Capital of Innovation, and were created based on a citizens’ petition.
Launched in response to the evolving challenges facing urban retail environments, notably the rising competition from e-commerce, the ECoSR initiative identifies, acknowledges, awards and promotes cities which excel in revitalising small retail and fostering a thriving local environment.
Cities compete in three categories, depending on the volume of their population; Vanguard City for between 5000 and 50000 inhabitants, Vibrant City for between 50000 and 250000 inhabitants, and Visionary City for above 250000 inhabitants.
Why small retail matters in EU
Small retailers are at the heart of Europe’s cities and towns, as they create jobs, foster entrepreneurship and economic prosperity while preserving local identity, activating public spaces, and contributing to vibrant local communities.
In European retail, 99 percent of businesses fall in the Small and Medium sized Enterprise category (SMEs) and 90 percent of them employ fewer than five people. Nonetheless, SMEs account for a massive two-thirds of the jobs in the sector.
From traditional, family-owned businesses to independent retailers driving innovation, small retail helps cities remain attractive, resilient, and connected. Thus, the ECoSR initiative celebrates cities that actively invest in helping small retail thrive. Beyond that, the initiative is building a growing European community of cities committed to supporting and promoting small retail.
The first European Capitals of Small Retail to be awarded
9 cities were shortlisted in the first ECoSR awards in 2026, three of which were awarded the European Capital of Small Retail 2026 title in the three categories; Barcelona in Spain, Caldas da Rainha in Portugal and Silandro/Schlanders in Italy.
Applications for the 2027 awards are open until October 9, 2026.
Applicant cities are firstly judged on four criteria; sustainability, entrepreneurship support and community engagement, digitalisation, and city attractiveness and vitality. Secondly, shortlisted cities will be requested to prepare an outline of the programme of activities they would implement during 2027 if they won the title, showing how they would spread their good practices and become a role model for other cities across Europe in supporting small retail.
Exchange programs between the first year’s shortlisted and awarded cities will be starting in September with the aim to encourage the cross-border implementation of best practices in small retail in the EU.
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