Riots cause disruption in France, REWE group and Carrefour acquire more stores, and Alcampo and Biedronka debut modernised formats.
At a Glance
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:
REWE given the green light for Tegut acquisition
The German retailer will be allowed to take on 38 stores, the competition authority has ruled. The REWE Group originally requested 40 stores of the circa 300 being sold by Switzerland’s Migros. Edeka was recently granted permission to take over 178 locations, but was denied 24 for at least four years.
Senior Insight Analyst, Michela Pearson’s view:
The landscape in Germany’s grocery retail continues to consolidate, with major retailers accounting for over 90% of sales. The REWE Group has declined to provide exact details about how the stores will be divided up between its supermarket (REWE) and discount (Penny) banners. New locations for REWE are likely to be independently-run as part of the ongoing privatisation strategy.
French supermarkets looted in the riots
Straight from the cyberattacks, which had an estimated 700 stores affected by the security breach with total costs still unknown at this time. The French market is now seeing rioting and looting across French cities starting on the 17th October, affecting around 1,500 businesses, with the FCD estimating hundreds of millions of euros in damage. The main reasons behind the riots include; cost of living pressures and deteriorating public services.
Senior Insight Analyst, Lucy Beaumont’s view:
The cost to the French market is yet to be seen, but according to LSA, the impact extended beyond directly damaged stores, with city-centre shopping footfall falling 31% and shopping centres overall down 12%, highlighting the wider cost to businesses from closures, restricted access and consumers avoiding affected areas. Retailers are facing millions of euros worth of damage due to stolen merchandise, damaged stores and equipment, temporary closures and lost sales, while employees and independent shopkeepers faced disruption and safety concerns.
Alcampo modernizing its hypermarket network
Alcampo has invested €7.9 million to modernise its Alcorcón hypermarket in Madrid, reducing the sales area from almost 14,000 sq m to 11,000 sq m. The refurbishment prioritises fresh food, service and convenience, with upgraded fresh-food markets, new assisted counters and an expanded prepared-food offer. Accessibility has been enhanced, including an adapted information desk, accessible fitting rooms and wider checkout lanes. Sustainability is central to the project. Solar panels will provide around 16.7% of the store’s energy needs, while wider efficiency measures are expected to reduce energy consumption by approximately 20%.
Senior Insight Analyst, Lucy Beaumont’s view:
The investment reflects Alcampo’s wider strategy to modernise its hypermarket estate, making large stores more efficient while placing greater emphasis on fresh food, prepared meals and customer service. Alcampo states Spanish shopping habits increasingly favour smaller and more convenient stores. The Alcorcón refurbishment suggests large stores can respond by incorporating convenience missions, particularly prepared food and easier-to-shop layouts.
Netto permanently adds Alnatura products to the range
Following a trial across stores in Berlin, Edeka’s discount banner is adding circa 80 Alnatura products to its assortment. Initially, these will be available in around 500 of the 4,400 strong network, predominantly in Bavaria and Baden-Württemberg. A nationwide rollout is expected in the future.
Insight Partner, Dan Butler’s view:
From Alnatura’s perspective, it signals the understanding that presence in the discount channel is becoming essential for brands, even when their price point is higher than the usual EDLP strategy. For Netto, it highlights the need to provide value beyond private label, and to differentiate to stay ahead in Germany’s ultra-competitive discount landscape.
Carrefour acquires Codifrance
Carrefour is looking to accelerate its growth in French convenience retail, agreeing to acquire Codifrance from Colruyt Group for €152 million. Codifrance brings a network of around 3,100 independent retail customers, three distribution centres and €307 million in annual revenue, extending Carrefour’s reach beyond its existing 1,500-plus Proxi stores.
Senior Insight Analyst, Lucy Beaumont’s view:
The acquisition supports its Carrefour 2030 growth strategy and is expected to complete in H1 2027, subject to regulatory approval. The deal will give the retailer greater scale, logistics capacity and access to independent operators, reinforcing convenience as a key growth channel.
The Polish market leader has revealed a new format. A Biedronka store in Siewierz has had its banner changed and now reads 7Biek. Whilst little is known about plans for the new banner, the retailer has confirmed it is testing a new store concept and layout. Biek is the name given to Biedronka’s express online grocery operation, which includes dark stores and a quick commerce partnership with Glovo.
Analyst, Theo O’Flynn’s view:
Much of Biedronka’s recent strategy has revolved around modernising its stores, mostly focusing on digitisation. This new banner may be the next step on this path. With a modernised store format and a potential connection to its online operations, Biedronka is building towards its own store of the future.