Europe roundup: purchasing, logistics and accessible shopping

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:  

• Lidl’s purchasing overhaul 

• Carrefour’s mobile supermarket 

• REWE and Mars’ partnership for electric logistics 

• Lidl improving cross-border shopping 

• Penny’s new distribution centre in Hungary 

Lidl consolidates global food procurement in new purchasing overhaul 

Lidl has reorganised its international purchasing team, placing all food procurement under Patrick Jung, who now reports directly to purchasing chief Christoph Pohl. The discounter has merged its fresh/frozen food and dry goods buying functions into a single food division to speed up decision-making and create a more agile organisation. 

Insight Partner, Dan Butler’s view:

The new structure should simplify governance, reduce management layers and costs, and enable quicker execution of sourcing and category strategies across its international markets. For suppliers, the restructuring is likely to mean a more centralised buying organisation with fewer decision-makers, potentially resulting in faster decisions but also stronger negotiating leverage from Lidl. 

Carrefour Spain launches mobile supermarket  

Carrefour Spain has launched its first mobile supermarket in Galicia, bringing essential groceries to rural communities without local shops. Operating on scheduled routes across small villages from Monday to Friday, Carrefour Express offers the same prices as nearby physical stores, with the retailer absorbing travel costs. The initiative reinforces Carrefour’s commitment to accessibility and demonstrates the flexibility of its multi-format, omnichannel model in reaching underserved communities. 

Insight Analyst, Linda Haden’s view:

Spain arguably offers Carrefour greater long-term growth potential than its home market France. Recent trading supports this view, with like-for-like sales noticeably stronger in Spain than France in the last fiscal year and its latest interim update. This measured approach will enable Carrefour to build its presence and grow distribution with less capital investment and operational risk, especially since consumer spending patterns and regional market dynamics make it difficult to predict demand. On a separate note, Carrefour inevitably see this as an opportunity to gain share in a market where powerful regional players hold sway.  

REWE and Mars partner to scale electric logistics across borders 

REWE Group and Mars have launched a cross-border transport pilot to electrify an end-to-end corridor between production sites in the Netherlands and Germany and REWE’s retail network. The project involves a fleet of 47 battery-electric trucks to transport various food products to REWE’s warehouse in Oranienburg before onward delivery to more than 300 stores and online fulfilment operations. The fleet has already travelled more than 2.4 million kilometres, avoiding almost 2,600 tonnes of CO2 emissions. With this pilot, REWE and Mars are aiming to demonstrate how battery-electric trucks can cut emissions without compromising on operational efficiency.

Supply Chain Analyst, Soline Duriez’s view:

As businesses look to scale electric transport, collaboration across the supply chain will be critical. REWE and Mars are demonstrating how shared investment and coordinated planning can accelerate the transition while spreading both cost and operational risk across the chain. If successful, the model could provide a framework for manufacturers and retailers looking to electrify transport corridors across increasingly interconnected European supply chains. 

Lidl makes cross-border shopping easier for Swiss shoppers 

The discounter is the first food retailer to trial the new digital customs app dAKZ. Shoppers no longer need to stop at customs on the way back into Switzerland from Germany, and can apply for a VAT refund of 19% on purchases above €50. The app uses location tracking and automatically detects when shoppers have crossed the border, adding an element of convenience. The trial is currently available at 25 stores near the Swiss-German border. 

Michela Pearson, Senior Insight Analyst’s view:

Cross-border shopping is estimated to make up around 10% of total grocery spending in Switzerland; Lidl is leaning into this instead of attempting to fight it. For some shoppers, the closest Lidl store might be in Germany, and the added benefit of a convenient VAT refund will be a driver of footfall. The discounter is already seeing positive results after the first few weeks of the trial. 

Penny Hungary expands its largest distribution centre

Penny Hungary has announced a HUF 13.5 billion (€37 million) expansion of its logistics centre in Alsónémedi, the largest logistics investment in the retailer’s history in Hungary. The project will increase the facility’s footprint by 14,500 square metres, making it Penny’s largest logistics hub in the country. Driven by growing demand for fresh products and a more complex product range, the expansion will support 58 additional stores with double refrigerated storage capacity, allowing for more precise distribution of perishable products. The expansion project also includes the installation of energy-efficient cooling systems, solar panels and electric vehicle charging infrastructure. 

Supply Chain Analyst, Soline Duriez’s view:

Penny’s investment reflects a proactive response to changing customer demand. With fresh products requiring greater logistics flexibility, the investment strengthens the retailer’s ability to support future growth. Investments in energy-efficient infrastructure can help support growth in storage and throughput while reducing the incremental operating costs associated with handling more products.