Central and Eastern Europe roundup: Market exits, green initiatives and new formats

7-Eleven parent company fails to reach acquisition agreement with Zabka 

Only two weeks after it was reported that the two companies were in talks, Seven and i Holdings has announced that it will not be purchasing a share in Zabka. The Japanese retailer states that it failed to reach an agreement on the terms of the purchase, but will continue to pursue expansion into Europe. 

Analyst, Theo O’Flynn‘s view:

The deal, had it gone through, would have been a major benefit to 7-Eleven’s plans for European expansion. Zabka has found a great deal of success in bringing innovative convenience retail to Europe and its expertise would have benefitted 7-Eleven greatly. However, with both retailers planning to expand in Europe, Zabka may soon face a serious competitor which can rival its highly regarded offering.

Froo takes convenience retail beyond the store

Froo has launched its first food truck in Bucharest, bringing its convenience offer directly to consumers attending events. The mobile format debuted at the city's Fan Zone and offers hot food, snacks and drinks, as the retailer looks to expand its presence beyond its growing network of more than 230 stores in Romania.

Image source: Zabka

Insight Analyst, Bently Briggs' view:

This initiative highlights how Froo is evolving its convenience proposition as competition intensifies across Romania's proximity retail sector. By extending the brand into high-footfall events, Froo can build awareness, test new formats and engage shoppers in occasions where speed and convenience are most valued. The move also reflects a broader trend among convenience retailers to meet consumers wherever they are, rather than relying solely on store-based growth.

Tesco considers sale of its CEE store network

It has been reported that the British retailer is considering a sale of its 560-store network across Czechia, Hungary, and Slovakia. This follows increasing competition in these markets from discount retailers, which has hit the hypermarket channel particularly hard. Despite its CEE portfolio remaining profitable, Tesco’s strategy is increasingly focused on its domestic store network.

Image source: IGD research

Analyst, Theo O’Flynn‘s view:

The rise of discount retail in CEE has squeezed the margins of retailers in other channels. This has caused Tesco to struggle for market share against the likes of Lidl and Aldi. Whilst it has improved its value proposition recently, it is not enough to compete with those of true discounters. This has been compounded by shopper trends away from large stores and towards proximity formats.

Carrefour strengthens sustainability credentials in Romania 

Carrefour has unveiled new sustainability initiatives across its business, including plans to remove more than 5,000 tonnes of plastic from packaging through measures such as reducing overpackaging, expanding refill formats and increasing the use of reusable solutions. The retailer intends to reinvest the resulting savings into lower prices for shoppers. 

In Romania, Carrefour has also expanded its partnership with food waste reduction platform Bonapp to four additional cities following a successful pilot programme in Bucharest. The initiative has already helped save more than five tonnes of food from waste, with shoppers able to purchase discounted products nearing their expiry dates through the Bonapp app. 

Insight Analyst, Bently Briggs's view:

Carrefour continues to be one of Romania's leading retailers when it comes to sustainability. While many retailers focus on isolated environmental projects, Carrefour is taking a broader approach by tackling both packaging waste and food waste while also creating value for shoppers. The latest initiatives support changing consumer expectations around responsible retailing and demonstrate how sustainability can be integrated into core business operations. By linking environmental objectives with affordability and convenience, Carrefour is strengthening its competitive position and setting a benchmark for other retailers in Romania and across CEE.

CarrefourSA reopens Turkey’s pioneering hypermarket amid ownership shift

CarrefourSA confirmed that it reopened its hypermarket in Kozyatağı in Istanbel on 3 July, the store is widely regarded as Turkey’s first hypermarket and a landmark in the country’s modern grocery retail development. Its reopening brings renewed attention to CarrefourSA’s large-format heritage at a time of broader ownership change, following A101’s acquisition of CarrefourSA.

Image source: CarrefourSA.

Insight Analyst, Ziwei Huang ‘s view:

The reopening of the Kozyatağı store suggests that larger-format assets may still have strategic value, whether as flagship sites, brand heritage locations, or testing grounds for repositioning CarrefourSA under new ownership. If the deal is completed, A101 would not only expand its discount-led network but also gain CarrefourSA’s multi-format assets, potentially reshaping competition between discount, supermarket, and hypermarket formats in Turkey.