Kaufland, Tokmanni and Polonez lead this week's key developments across Europe's grocery and retail landscape.
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:
Kaufland expands organic sourcing through a new Naturland partnership.
Tokmanni extends SPAR collaboration with Swedish rollout.
Polonez closes in on €100m revenue as growth outpaces market.
Lidl Ireland invests in children's food education programme.
Carrefour supports communities affected by devastating wildfires in Spain.
Kaufland opens new organic sourcing routes with Naturland
Kaufland has partnered with organic farming association Naturland to expand its organic range and secure access to internationally sourced organic raw materials, with the first Naturland-certified own-label products expected to launch from early 2027. The partnership will complement, rather than replace, Kaufland's existing Bioland-certified products and enable expansion into categories such as coffee, cocoa and rice, as well as broader fruit and vegetable sourcing. Kaufland says the move supports its sustainability strategy, responds to growing consumer demand for organic products, and leverages Naturland's international network and strict environmental, social and animal welfare standards.
Insight Partner, Dan Butler’s view:
As domestic organic production struggles to keep pace with demand, Kaufland is strengthening supply security and supporting future growth through international sourcing. The move creates opportunities for Naturland-certified suppliers but may raise certification and compliance requirements for producers seeking to join its K-Bio range.
Tokmanni Group deepens its partnership with SPAR by offering SPAR-branded products to Dollarstore in Sweden
SPAR-branded products are set to arrive in Sweden’s Dollarstore stores later this year, marking the latest step in Tokmanni’s expanding partnership with SPAR as it drives growth across Europe. Since becoming SPAR’s exclusive licence holder in Finland in January 2025, Tokmanni has opened six SPAR supermarkets, with up to five more planned by the end of 2026. The move builds on the retailer’s access to the scale and sourcing capabilities of the global SPAR network. Tokmanni currently stocks around 200 SPAR own-brand products in Finland, with top sellers including sugar, hand soap, pasta, biscuits, canned tuna and chocolate.
Insight Analyst, Linda Haden‘s view:
With Swedish shoppers remaining highly price-conscious, SPAR-branded products should strengthen Dollarstore's value proposition. The range could also support Tokmanni's ambitions in Sweden, helping it compete more effectively with established discounters including Lidl and Willys.
Specialty Eastern European grocer in Ireland nears €100m in revenue
The company behind the Polonez chain of Eastern European supermarkets in Ireland, Tempside, saw a 14% uptick in revenue to €98.3m in 2025, driven by organic growth, new store openings and a stronger wholesale business. Wholesale accounted for 19.8% of total sales, up four percentage points year-on-year, while the remainder was generated through its retail estate. Polonez now operates 55 stores across the Republic of Ireland and Northern Ireland, offering more than 6,000 SKUs sourced from over 150 suppliers.
Insight Analyst, Linda Haden‘s view:
Based on IGD forecasts, Polonez is growing around five times faster than Ireland's grocery market. Its success demonstrates how a focused niche proposition and integrated retail-wholesale model can drive strong growth and profitability, while challenging perceptions of ethnic retail as a small-scale sector.
Lidl Ireland introduces free food education for kids
With an investment of €150,000, the discounter has launched Lidl Foodies, a free education programme to support children in building healthy and positive relationships with fruit and vegetables. Through engagement with schools, Lidl will provide resources to encourage tasting, growing, and understanding fresh produce, in line with the national primary school curriculum.
Senior Insight Analyst, Michela Pearson’s view:
Health is becoming an increasingly important pillar of retailers' sustainability strategies. Following the rollout of its Paw Patrol campaign across 30 countries, Lidl Foodies demonstrates Lidl's commitment to encouraging healthier habits among children while strengthening engagement with Irish families.
Carrefour Spain and the Red Cross supports 2,700 affected by wildfires
In the early hours of Thursday, 23 July, the Carrefour Foundation in Spain and the Red Cross activated their ‘Immediate Response Agreement in Emergency Situations’ to provide essential food support to more than 2,700 people evacuated as devastating wildfires swept through the Community of Madrid, Toledo and Ávila.
Senior Insight Analyst, Lucy Beaumont’s view:
Heatwaves continue across Europe, wildfires are forcing thousands of people from their homes in Spain. Through a long-standing partnership, Carrefour and the Red Cross are providing food, essential supplies and psychosocial support during what has become one of the country's most severe wildfire seasons.
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