European retail updates, including REWE and 7-Eleven’s acquisition bids, Axfood and Picnic’s results, and Carrefour’s new shared format.
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:
REWE group’s bid to acquire Feneberg
Axfood’s H1 2026 results
A potential partnership between 7-Eleven and Żabka
Picnic’s FY 2025 results
Carrefour and Match’s new joint format
REWE's Feneberg bid signals further consolidation in German food retail
REWE Group and the newly formed LEH Allgäu GmbH have formally notified Germany’s competition authority of their planned acquisition of the insolvent regional grocer Feneberg, marking the next step in the rescue and restructuring process. The deal would see REWE and LEH Allgäu split and independently operate major parts of Feneberg’s 72-store network, with the objective of preserving jobs, maintaining local food retail infrastructure and securing the future of the long-established Allgäu retailer. The transaction remains subject to approval and the completion of the insolvency process, although key stakeholders, including the creditors’ committee, have already supported the proposed solution.
Insight Partner, Dan Butler’s view: the move reinforces the ongoing consolidation of Germany’s grocery market, with large national players such as REWE using selective acquisitions to strengthen regional market positions and capture scale advantages. For the South German market in particular, the deal should improve continuity of supply and protect retail capacity, but it also highlights the increasing pressure on smaller regional supermarket operators that lack the scale to absorb rising costs and competitive intensity.
Axfood delivers mixed H1 2026 results amid a growth slowdown
Axfood delivered a resilient but uneven H1 2026, with net sales up 1.7% to SEK 44.8 billion and operating profit reaching SEK 1,770 million. The group’s net sales growth fared lower than the overall sector. Hemköp stood out, rising 8.6% as it gained undisclosed market share, while Willys continues to scale, surpassing four million loyalty members. Yet its momentum is clearly slowing, with like-for-like sales in the division (including Eurocash) up just 0.6% in H1 (versus 4.8% last year). Looking ahead, Axfood is pivoting from volume-led growth to productivity and execution, accelerating investment in logistics automation, AI and data to strengthen long-term competitiveness.
Insight Analyst, Linda Haden ‘s view: A shift from food price inflation to deflation is reshaping consumer behaviour and competitive dynamics within Sweden’s retail grocery market. This transition accounts for Axfood’s lacklustre performance in the first half of 2026. Price cuts driven by a VAT reduction and falling input costs have intensified competition, with market-leader ICA narrowing the price gap to discounters. This has had a direct impact on Willys, who has seen its low-price advantage being eroded in recent months. Performance was also weighed down by weaker e-commerce and the ongoing drag from City Gross integration.
7-Eleven parent company explores purchasing a stake in Żabka
Seven & I Holdings is reportedly in talks to buy a share of the Polish convenience store chain. Both retailers, which offer similar proximity formats with strong foodservice propositions, are working towards rapid expansion of their networks.
The Japanese holding company has aims to expand its 7-Eleven banner to up to 10 new markets by 2030, including entering Europe for the first time. Żabka, meanwhile, has been rapidly expanding within Poland and recently entered the Romanian market.
Analyst, Theo O’Flynn‘s view: This partnership could hold major benefits for 7-Eleven’s European expansion. Access to Żabka’s local knowledge and existing infrastructure would facilitate a smoother and more effective rollout. Additionally, access to Żabka’s pioneering digital and technology capabilities would be a benefit to any retailer. A partnership between the two most innovative retailers in the space has the potential to reshape convenience retail in Europe and beyond.
For a more detailed outlook: Read Strategic potential of 7-Eleven acquiring a stake in Żabka
Picnic sales grow, as continued investment eats into profits
Picnic reported FY2025 revenue of €1.9bn, up 24% year-on-year, with growth across all markets and a shopper base that expanded to 3.6 million shoppers. The Netherlands remained its largest market with around €1.0bn in sales, while Germany grew to €774m (+28%) and France reached around €133m (+40%), demonstrating strong international momentum. Despite the sales growth, Picnic recorded a net loss of €272m as it continued investing heavily in automated fulfilment, logistics infrastructure and expansion, particularly in Germany.
Insight Partner, Dan Butler’s view: the results show that Picnic’s model is becoming established, with the Netherlands reaching a positive underlying EBITDA while Germany has become the key engine of future scale and market share growth. Looking ahead, Picnic management expects revenue to exceed €2.3bn in 2026, and if Germany continues to scale while automation improves efficiency, it appears well positioned to narrow losses and move closer to group profitability over the medium term.
Carrefour leverages Match’s fresh expertise
Carrefour is trying to break into the fresh food market, leveraging Match’s expertise, by opening the first Match Frais store under the Carrefour banner in the outskirts of Lille. Carrefour has an objective to open 45 stores by 2030, bringing the total to 160 outlets. Alexandre Bompard, CEO of Carrefour France states it ‘going to further differentiate ourselves in the fresh food sector because a greater proportion of fresh products in stores triggers a better NPS (Net Promoter Score), the customer satisfaction index’. Carrefour has set this store target to achieve €10 million in revenue for the first year.
Senior Insight Analyst, Lucy Beaumont’s view: with the opening of this Carrefour Match concept, it is helping to test and learn with an assortment of over 9,000 items, with over 5,000 products dedicated to fresh. Carrefour will benefit on Match’s expertise especially in dishes prepared on site and traditional fresh products. Unlike Grand Frais supermarkets, this store is designed so shoppers can do a complete shop. An impressive standout feature is the store has a cost price discount offer on two products, visible at the store entrance, driving value messaging in a tough economic environment.
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