Central and Eastern Europe roundup: Expansion, growth, and new store formats

In this instalment, our analysts for Europe offer their take on some of the region’s latest developments and initiatives. Here’s what you need to know about:

• Zabka’s plans to expand into new markets.

• Lidl Romania’s investments in network expansion

• Migros’ strong growth reports

• Carrefour’s new store format

Zabka aims for further European expansion

The Polish convenience retailer will look to build on the success of its 2024 expansion into Romania, where it now operates over 200 stores, with entry into new markets. The retailer has not specified which countries are being targeted, but it is reasonable to assume that it will begin with nearby CEE markets. The region’s diverse retail markets and growing urbanisation create key opportunities for a new generation of convenience retail.

Analyst, Theo O’Flynn‘s view: Zabka’s lauded small format stores and foodservice proposition offer added value which is rare to find in European convenience retail. This has not only made it extremely popular in its home market, it is likely to resonate wherever the retailer operates. Zabka has the ability to disrupt any convenience market in CEE.

Lidl Romania reinvests all 2025 profit into expansion   

Lidl Romania reported a consolidated net turnover of 27.3 billion lei in 2025, representing a year-on-year increase of over 10%. The discounter generated a profit of 954 million lei, which it plans to fully reinvest in opening more than 40 new stores nationwide in 2026 (source: Economica). This expansion is expected to create around 1,000 jobs and increase volumes from local suppliers by approximately 10%. CEO Alberto Chueca stated that the company aims to protect customer purchasing power by absorbing cost increases.

Insight Analyst, Ziwei Huang‘s view:   Lidl’s decision to reinvest its entire 2025 profit into the Romanian market signals strong long-term confidence in the country’s retail growth potential. By prioritising physical expansion and local supplier partnerships over short-term returns, the discounter reinforces its market leadership. This capital-intensive approach also suggests Lidl expects sustained demand for value formats, even in an uncertain economic environment.

Migros Q1 2026 delivers strong growth amid headwinds

Migros increased first-quarter net sales by 40% in nominal terms (6.4% in real terms), reaching TRY 109 billion in 2026. Despite persistent high inflation, the retailer demonstrated resilient growth in a challenging consumer environment, supported by ongoing store network expansion and strong e-commerce performance. Looking ahead, Migros is prioritising operational efficiency through technology investments such as self-checkouts and electronic shelf labels. It also plans to focus on larger formats, including supermarkets and Macrocenter, while scaling hybrid stores that integrate physical and online channels, with strict cost control remaining a key priority.

Insight Analyst, Ziwei Huang ‘s view:   Migros’s focus on automation and hybrid formats reflects the growing importance of cost efficiency in Turkey’s high-inflation environment. Investment in technology and larger stores supports omnichannel development and operational resilience, particularly amid supply chain and energy cost pressures. This approach helps sustain its market position, while broader market conditions may constrain expansion.

Carrefour launches compact hypermarket 2.0 in Poland

The new 3,100 sq m format stocks a range of over 25,000 SKUs. Its mission-focused layout is designed to facilitate both quick top up and full stock up shopping trips. A standout of these mission-oriented zones is an area dedicated to spotlighting local suppliers and the best of Polish produce. The retailer has also invested in bringing technology and sustainability solutions to the new store, including lockable refrigeration and scan-and-go checkouts.

Analyst, Theo O’Flynn‘s view:   There has been much speculation that Carrefour would soon be exiting the Polish market, following its recent announcement of plans to sell its Romanian business. This move suggests that this may not be the case, as it is unlikely the retailer would invest in developing store formats for a market it plans to abandon. Moreover, the store’s design suggests carrefour may be aiming to compete with Poland’s discounters by offering a wider range while supporting quick shopping missions.

What to read next: How CEE retailers unlocked autonomous stores.

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