Europe roundup: Results, acquisition, and sustainability initiatives

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: 

• Colruyt’s FY 2025/26 results

• Lidl’s milestone revenue in Austria

• Coop Norge’s bid to acquire MatvareExpressen

• Carrefour’s plastic reduction scheme

Competition in the Belgian market impacts Colruyt’s financial performance

Colruyt Group delivered modest top-line growth but weaker profitability, with revenue rising by +3.1% to €10.6 billion in its FY 2025/26. Operating profit and net income declined under intense price competition, wage inflation and promotional pressure. Margins softened reflecting higher costs and a more competitive Belgian retail market, alongside declining market share. The group continued to invest significantly in store networks, logistics, digitalisation and efficiency initiatives despite weaker earnings.

Insight Partner, Dan Butler’s view: Colruyt management expects broadly stable operating and net results in the near term, but acknowledges that market conditions will remain challenging due to macroeconomic pressure and structural shifts in food retail. Its strategy focuses on productivity gains, cost control and targeted growth, especially in food retail, omnichannel and efficiency improvements, to defend competitiveness. Longer term, Colruyt’s outlook depends on successfully navigating price competition, restoring margins and leveraging investments in automation, digital capabilities and portfolio optimisation following recent divestments.

Lidl hits milestone revenue in Austria

The discounter has reached 2 billion euros of revenue in the market in 2025, with growth of circa 7% from 2024 figures. Positive performance was attributed to the local organic private label “Ein Gutes Stuck Heimat” (a good piece of home), up 20% on the previous year, as well as Austrian products overall, which made up circa 60% of total sales. Private label Vemondo plant-based products also saw a positive increase of 13%.

Senior Insight Analyst, Michela Pearson’s view: Lidl has historically lagged behind other retailers in the Austrian market, and while the revenue still does not get it closer to overtaking rival Aldi (called Hofer in Austria), it signals how it is meeting shoppers need. Growth of 7% is significantly above the market, and highlights how discounters need to move past delivering value alone by tailoring the assortment to local demand. Lidl is continuing to focus on health and sustainability as key pillars of its strategy, guided by the Planetary Health Diet and investing heavily in electric logistics.

Coop Norge launches bid to acquire online grocery wholesaler MatvareExpressen

Coop Norge has launched a voluntary cash offer to acquire MatvareExpressemn, valuing the business at around NOK 325 million. The deal follows a strategic review that identified Coop as the preferred long-term owner. Coop aims to leverage its purchasing scale, national footprint and expertise to accelerate MatvareExpressen’s growth and strengthen its competitive position, while establishing a stronger presence in B2B e-commerce. Completion is subject to Coop securing at least 0% ownership and regulatory clearance, with a deadline of 30 September 2026.

Insight Analyst, Linda Haden ‘s view:  The acquisition is a smart, calculated move to bypass structural constraints in Norway’s heavily regulated B2C grocery market. By acquiring a pure-play B2B operator, Coop would be able to expand without incurring the ire of the Norwegian Competition Authority, while mitigating risks linked to ongoing antitrust measures and a projected market share decline. The deal also accelerates growth by giving Coop immediate access to a scaled digital logistics platform and a NOK 500 million revenue business. Synergies across procurement and distribution should lower per-unit costs and strengthen Coop’s competitive position against its oligopolistic rivals NorgesGruppen and Reitan (REMA 1000).

Carrefour is removing 5,000 tonnes of plastic from its packaging

Carrefour announced it is making new commitments to remove 5,000 tons of plastic to reduce its packaging costs. The retailer plans to reinvest all the savings from the plastic removal, in price reductions of up to nearly 10% on products. Carrefour claims, ‘high volatility of oil markets and the increase in eco-contributions associated with the price of packaging have led to a 50% increase in the tonnage of virgin plastic with a lasting impact on the cost of consumer packaging, which is still mainly made from plastic.’

Senior Insight Analyst, Lucy Beaumont’s view:  increasingly shoppers are trusting retailers to make sustainable changes, check out the latest global sustainability update: H1 2026. Carrefour continues to evolve its sustainability commitments with an aim of setting new market standards. The retailer is taking a strong lead in making positive changes in the industry, with the commercial benefit of reinvesting €5 million of potential cost savings from its five new initiatives.

What to read next: How Europe’s largest stores are responding to change.

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