Global roundup: expansion plans, tech solutions and price-cuts

The retail round-up follows trends globally across the industry and brings you highlights for the week commencing 19 May.

Europe

Carrefour’s new franchise model, discounters chase growth and a new acquisition

Carrefour Poland launches new franchise model

Carrefour’s new franchise model differs from previous models as it does not require partners to buy in with a mandatory contribution. Instead, partners are offered a ready-made 50-100 sq m store in a popular location. The retailer is offering a training package, marketing and logistics, as well as support from a regional supervisor who helps the franchisee in current operations and is jointly responsible for the performance of the store. Carrefour plans to open 10 stores under this new model, starting with locations in Warsaw. There are plans to then expand into other Polish cities with populations of over 150,000 people.

Lucy Beaumont, Senior Insight Analyst’s view: As Poland has endured a difficult economic environment over the last three years with high inflation, the attractiveness of a franchise scheme continues to grow in the market. Carrefour’s offer of no-own contribution makes it more accessible for newer entrepreneurs who do not have financing to start a business and the franchisees will receive a guaranteed income of PLN 28,000. Franchise Director of Carrefour Poland, Wojciech Sypień, claims “the new franchise model will meet with a very good response from the market and will significantly accelerate the development of the Carrefour network in large Polish cities.”

Action’s net sales increased by 22% to €13.8bn in 2024

Attracting new shoppers and increasing visit frequency contributed to its performance, which also saw like-for-like sales increase by 10.3%. In 2024, Action opened 352 new stores, taking its store count to 2,918 locations. Recent market entries including Italy and Spain accounted for 65 and 40 of these new stores respectively. So far in 2025, Action has entered Switzerland and plans to enter Romania later in the year. Despite only opening in April this year, two Action stores in Switzerland are already ranked in the top ten performing stores.

Harriet Cohen, Senior Insight Analyst’s view: Action’s results continue to be impressive, with the retailer driving skill and scale across even more markets. It will be one of the fastest growing European retailers to 2028, propelled by its value proposition, brand awareness, operational efficiency and rapid expansion in line with its own criteria. Meanwhile, entry to Romania will give Action access to one of Europe’s fastest growing grocery markets.

Penny relaunches its brand in Austria

The discount arm of the REWE Group launched a new logo and brand identity in the Austrian market, changing to Penny (where it was previously Penny Markt).  It also has a new tagline, “Da schau her”, which largely translates to “will you look at that!”, and is embarking on a store modernisation programme. To celebrate, Penny offered shoppers daily prizes and €5 off in the app, and the opportunity to win one of 1,000 free shops.

Michela Pearson, Insight Analyst’s view: Penny’s rebranding comes at a good time, as the discounter aims to reposition itself in the market. Competitors Aldi (Hofer) and Lidl are performing well, and despite being forecast to grow slightly ahead of both, Penny sales still lag behind. To maintain long-term growth, it will need to continue to provide shoppers with great value and reasons to visit the stores. The discounter went through a similar rebrand in Italy in 2022 and has continued to enjoy success in the market ever since.

Approval for Colruyt to acquire convenience chain Delitrateur

This will see Colruyt acquire 40 Delitrateur stores from Cora-Louis Delhaize, which specialise in food-for-now and food-for-later shopper missions. Majority of the stores are operated by independent merchants and Colryut has no current plans to change the brand, concept or the franchise model, and as such they will continue to operate under the Delitrateur banner.

Harriet Cohen, Senior Insight Analyst’s view: the acquisition supports Colruyt’s strategy to enhance its city-based market share in Belgium from 20% to 30% as most Delitrateur stores are based in and around Brussels. Meanwhile it will see Cora-Louis Delhaize reduce its Belgian presence to a bare minimum, operating just seven Cora hypermarkets.

Asia-Pacific

Australian retailers focus on value, plus expansion plans

Australian retailers cutting prices

Woolworths in Australia cuts prices of 400 essential items in a longer-term campaign, which offers an average of 10% savings with prices locked in until at least the end of the year, and potentially till 2026. Coles has also highlighted its autumn price cuts with average savings of 21% on 680 products, and further savings will be announced for winter months at the end of May. Additionally, Aldi has announced a Limited-Time Only range which includes beef meatloaf, meal kits and desserts for the month of May.

Tan Soo Eng, Senior Insight Analyst’s view: Woolworths’ latest promotion to freeze prices longer term may signal a shift towards fewer promotions and more stable prices. This is a big undertaking as it will require time to shift consumers’ value perceptions of the retailer. It has also announced a AUD100m (US$64m) investment into private label for FY 2025. It will be interesting to see if Woolworths succeeds in moving towards an “everyday low price” strategy to deliver price stability for its shoppers amidst competitive responses from Coles and Aldi.

Aeon plans to expand eightfold in Vietnam by 2030

Japanese retailer Aeon has announced ambitious plans to increase its large format store count from 12 to 100 by 2030. Its expansion aims to help it become more competitive in the market against retailers such as Central Retail. Aeon also plans to expand its store count of small format grocery stores to 200.

Jarred Neubronner, Senior Insight Analyst’s view: Vietnam is considered one of Aeon’s most important international markets due to its high grocery growth potential and high margins. Whilst Aeon planning an expansion in Vietnam is not surprising, the scale of its expansion is. It will tap into growing opportunities from rising disposable incomes and increasing urbanisation, which will see shifts in grocery spending from traditional channels to modern channels.

North America

Walmart achieves ecommerce profitability for the first time

Walmart’s US net sales increase $3.2% to $112.2 bn in Q1

Q1 performance was supported by strong growth in health and wellness and grocery, while commerce sales grew by 21%, with strong gains in grocery. Walmart continued to reduce fulfilment costs and achieved ecommerce profitability for the first time in Q1. The convenience offered through its various delivery channels continues to appeal to, and grow share of, upper-income shoppers. Advertising revenue remains key to driving profitable growth, and its Walmart Connect business grew by 31% in the quarter. 

Oliver Butterworth, Senior Insight Analyst’s view: Walmart continues to enhance its ecommerce business, and reaching profitability is a significant milestone for the business. It is on track with its aim to offer same-day delivery to 95% of US households by the end of Fiscal ’26. It continues to expand its online assortment, growing its marketplace categories by more than 30% in the quarter. Walmart will not be able to absorb all tariff-related cost increases if they persist, suggesting these will be passed on to the customer; “we will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure” (Doug McMillon, Walmart CEO). However, considering two thirds of what Walmart sells in the US is made, assembled or grown domestically, the business is equipped to “manage this well, or better than, other retailers”.

Middle East

Majid Al Futtaim optimises retail media through sensored technology

Majid Al Futtaim to deliver tailored retail media solutions

The retailer’s retail media network, Precision Media, has partnered with Advertima which specialises in in-store retail media solutions. Majid has deployed Advertima’s Audience AI across its Carrefour hypermarkets. Advertima Audience AI helps identify who is shopping in-store using visual-spatial 3D sensors and can identify whether shoppers are families, young professionals, or bargain hunters, for example. It can then deliver tailored messages to shoppers in real-time through digital screens.

Rachel Sibson, Senior Insight Analyst’s view: the use of an AI-powered solution will enable Majid to enhance its campaigns by delivering highly targeted ads. By connecting in-store data with online audience profiles, the retailer says it can now offer brands a consistent and targeted way to reach the same customer across both digital and physical channels. It will enable it to improve content relevancy and increase the overall effectiveness of its retail media efforts. The retailer gave the example of how a customer browsing baby products online might later see a relevant promotion in-store at a later date.