Europe roundup: store format evolution, value and growth

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 Czechia reveals new store format

• REMA 1000 kicks off the year with price cuts

• Conad’s announces strong 2025 results and new store format

• Polish drugstore concept meets changing needs of shoppers

Kaufland Czechia reveals new store format

It has launched its first ‘Kaufland XS’ format store in Veselí nad Lužnicí, Czechia, aiming to deliver convenience and quality closer to shoppers’ homes. The store spans 2,245 sq m and offers over 13,000 SKUs, including food, toiletries and household goods. Despite its smaller-than-usual size, the store is equipped with counters for meat, deli and cheese. It also places a strong emphasis on local assortment, featuring products from regional suppliers in South Bohemia, such as fresh cheese and dried meat from local farmers.

Insight Analyst, Sabrina Wong’s view: hypermarkets in Czechia is forecast to lose further market share to smaller formats and discounters. As Kaufland is predominantly a hypermarket retailer, this new format will help address its lack of smaller format while preserving its unique proposition of counters, which positions Kaufland strongly to compete with other supermarket retailers. If Kaufland can successfully showcase its value proposition in this new format, it will be a strong contender against other smaller format retailers in the market.

REMA 1000 kicks off the year with price cuts

The Norwegian discounter is reducing prices, recognising that shopping baskets change from December to January. In January, shoppers purchase more traditional everyday items, therefore the retailer is reducing prices on products such as cold cuts, bread and breakfast items, and simple dinner favourites including fish and chicken.

Senior Insight Analyst, Rachel Sibson‘s view: the discounter aims to provide shoppers with a strong start to the new year, a time when they are actively reviewing their spending. By shifting focus to everyday essentials, REMA 1000 is reinforcing its role as a reliable, low-price destination during a period of heightened budget consciousness.

Conad’s announces strong 2025 results and new store format

The Italian retailer grew 4.4% in the 12 months to December, reaching total sales of €21.8bn. The TuDay Conad urban format, launched in recent years, saw an impressive 27.1% increase. Private label products also performed well, reaching share of over 34% and generating sales of €6.5bn. Conad announced it would be launching Benessity Conad, a new health and wellness focused store format, this year. The offering will focus on longevity, weight loss, mental wellbeing and sports, with dedicated trained staff available to offer shoppers support and guidance. This is part of an investment plan of €2bn over the next two years, which will focus on the store network, supply chain improvement, digitisation, and sustainability.

Senior Insight Analyst, Michela Pearson’s view: Conad has seen significant success in recent years, with the diversification and streamlining of its portfolio, especially in the non-food space, helping drive growth. The investment plan will continue to support its channel growth and digitisation, while its private label strategy will continue to deliver results. The new health and wellness format taps into the Italian shopper focus on better-for-you products and will likely see success. For more details on Conad’s strategy, read the recently updated Italy Country presentation.

Polish drugstore concept meets changing needs of shoppers

Super-Pharm’s Skin & Beauty concept store has been positioned to meet changing shopper dynamics, providing experience and customer service. The store is divided into thematic zones to meet different shopper missions and provides services, such as skin examinations, dermatological consultations and hairdressing.

Insight Partner, Dan Butler‘s view: Super-Pharm has pivoted from a traditional high-volume retailer to a service-led destination that consolidates diagnostics, consultations and premium shopping into a single ‘one-stop’ experience. Premium brands are offered a new outlet and can collaborate with the retailer to become the preferred brand for recommendations as part of its services.

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