Europe roundup: loyalty, logistics, store formats, and partnerships

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:

• Biedronka’s loyalty app success

• Lidl’s sustainable logistics in the Netherlands

• Jumbo’s new store formats

• City Gross’ new bakery partnership

Biedronka’s loyalty app becomes Poland’s most used

Mediapanel’s May study placed the Moja Biedronka as the most popular loyalty app for a traditional retail chain in the market, with over 10.75m users. This means it has overtaken those of Lidl and Żabka, retailers known for their strong digital loyalty propositions. The app offers more than just loyalty discounts; gamification features, shopping list support, and integration with online payment platforms have all contributed to its popularity.

Analyst, Theo O’Flynn’s view:  The success of Biedronka’s loyalty app is surprising, despite its position as market leader. Both Lidl and Zabka are considered pioneers in this space, not only within Poland but across the European market. Biedronka, however, arrived relatively late to the digital loyalty space, launching its app in 2022. The app’s rapid growth is due to its excellent design and engaging features, as well as the discounter’s strong value proposition.

Lidl Netherlands accelerates fully electric logistics 

Lidl Netherlands will transition to 100% electric-powered deliveries to all its stores in the country by 2027, achieving its original target three years early. The retailer has already completed fully electric logistics in two regions, marked by a new 1,000 kW fast charger at its Almere distribution centre. The site operates gas-free, with a 1MWh battery and rooftop solar systems supporting a consistent energy supply. Leadership highlights early investments in electric infrastructure and transport reducing exposure to fuel costs while enabling more efficient and predictable energy use.

Supply Chain Analyst, Soline Duriez’s view: Electrification reduces exposure to fuel cost volatility and improves cost control over time, while reinforcing a credible sustainable proposition which will resonate with shoppers. Lidl’s strategy demonstrates how targeted infrastructure investment can reinforce both operational resilience and brand positioning.

Jumbo tests two new store formats

The Dutch retailer is testing two new supermarket formats tailored to local catchment areas, aiming to better align stores with local demand and improve operational efficiency. It has introduced an urban model with a stronger focus on convenience and ready-to-eat products, and a smaller-town format with a more streamlined assortment.

Insight Partner, Dan Butler’s view: This shift signals a deeper move toward localised retail strategies, increasing competition on convenience, especially in urban areas where time-poor shoppers are driving demand. Suppliers, particularly in ready meals, snacks, and private label, could see growth opportunities but also face tighter SKU rationalisation in smaller stores. The focus on differentiated formats may require suppliers to adapt pack sizes, product ranges and innovation to suit distinct urban versus rural shopper needs.

City Gross enters unique partnership with Lysings Konditori & Glutenfria Bageri

City Gross has unveiled a new partnership with Lysings Konditori & Glutenfria Bageri to introduce the latter’s extensive gluten-free products within stores in Östergötland, Sweden. The move highlights City Gross’s strategy to enhance its appeal among quality-focused shoppers, while supporting smaller producers and expanding its presence in the growing free-from category.

Insight Analyst, Linda Haden’s view: Post-acquisition by Axfood, City Gross is focused on strengthening its competitiveness through improvements to its proposition, including a broader, inclusive and more relevant product assortment. The Lysings partnership aligns with this direction, supporting greater localisation and reinforcing a more inclusive offer, particularly in allergen-adapted ranges. Given Sweden’s above-average coeliac prevalence, gluten-free also represents a clear opportunity for City Gross to build relevance within the burgeoning health and wellness space.

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