Europe roundup: Digital optimisations across the region

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:

• Albert Heijn’s AI-driven food waste solutions

• EDEKA’s expanded loyalty proposition

• Alcampo’s digital traceability for fresh produce

• Lidl’s new self-checkout operating system

• Kesko’s food waste reductions

Albert Heijn turns to AI to reduce bakery food waste

The Dutch market leader is introducing AI-driven ‘smart baking’ and dynamic pricing in its bread departments to better match supply with demand and reduce waste. The system predicts daily bread needs per store while automatically applying increasing discounts, up to 70%, on unsold items throughout the day, visible via the app and in-store labels. This initiative, supported by the in-house ‘Bak’ application, is expected to prevent over 2 million kilograms of food waste annually and builds on earlier success in reducing bread waste.

Insight Partner, Dan Butler’s view:

This will tackle a high-waste category with both operational efficiency and demand stimulation, delivering sustainability and cost benefits simultaneously. It demonstrates how AI can drive real-time inventory optimisation and pricing strategies, improving margins while reducing waste. It also sets a precedent for broader adoption of dynamic pricing and waste-reduction models across perishable categories, potentially reshaping shopper expectations around pricing transparency and sustainability.

EDEKA expands loyalty proposition through RTL+ partnership

EDEKA is extending the appeal of its loyalty proposition beyond grocery shopping through a strategic partnership with RTL Deutschland, offering customers integrated access to the RTL+ streaming service. The move reflects a broader shift in how retailers are evolving loyalty schemes, positioning them as part of customers’ everyday lifestyle rather than purely transactional tools tied to in-store spend.

Insight Analyst, Bently Briggs’ view:

This partnership highlights how loyalty programmes are moving well beyond traditional points-based mechanics, as retailers look to differentiate in an increasingly competitive landscape. This reflects a wider industry trend, where retailers are competing not just on price and promotions, but on the breadth and relevance of their ecosystems. As more grocers adopt similar strategies, loyalty will become a key battleground.

Alcampo improves traceability in fresh produce

In Spain, Alcampo has introduces Aliver, a digital traceability system designed to allow shoppers to access information about the selected products. The system allows access to a batch number, the origin, harvest date, distance travelled to point of sale. The initiative is developed by the Madrid Institute for Rural, Agricultural and Food Research and Development in collaboration with the Spanish National Research Council and the Union of Agricultural Cooperatives of Madrid. The system is only available in Alcampo hypermarket in Leganes, Madrid.

Senior Insight Analyst, Lucy Beaumont’s view:

Increasing the visibility and traceability of fresh products helps to showcase the quality of goods and helps boost local producers' platform in store. At the moment, the system is very manual for the Alcampo hypermarket, the store must register the product from Rural Madrid once they arrive at store, validate the receipt and automatically activate the integration of the data into the Aliver’s digital platform. I expect the initiative will be replicated across Auchan’s network if successful among Spanish shoppers.

Lidl optimises self-checkouts in Poland

The discounter states that over 50% of its Polish shoppers prefer self-checkouts to those operated by staff. Lidl is now bringing in a new operating system to optimise the terminals. They will now display the most popular loose items in store, such as bakery products and fruits and vegetables. This will significantly speed up the process of looking up these items. The update also includes value mechanics. Connection to the Lidl Plus loyalty scheme is simplified and total savings from promotions are displayed on screen.

Analyst, Theo O’Flynn‘s view:

This is a relatively easy-to-implement change with many positive outcomes. It will of course optimise store operations, allowing for more shoppers to check-out more quickly while reducing labour costs. By making the process smoother and displaying value more clearly, it will also improve the store experience. Shoppers will leave Lidl stores with a simple checkout experience and the money they have saved fresh in their minds.

Kesko achieves impressive food waste reduction in 2025 

Kesko reports that its K‑Food stores cut food waste by around one million kilograms in 2025, driven by more accurate demand forecasting and strong uptake of discounted red‑label products. The system analyses sales patterns, promotions, seasonality and even weather to optimise ordering, ensuring the right volumes at the right time. Sales of red‑label items rose more than 40% versus 2021, supported by dedicated in‑store shelving and high shopper engagement. Kesko remains on track to halve food waste from 2019 levels by 2030, with most stores also donating surplus edible goods to food‑aid partners.

Senior Insight Analyst, Rachel Sibson‘s view:

Kesko’s progress highlights how data-led inventory management and clear value messaging can materially shift waste outcomes while supporting shoppers’ budgets. The strong performance of its red-label products shows that well-executed markdown strategies can normalise waste-prevention behaviours without compromising availability or experience. Kesko provides an example that operational initiatives, transparent discounting and consistent surplus-donation partnerships can deliver both commercial and sustainability gains.

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