Global round-up: expansions, M&A activity and financial results

Europe: online expansion, retail alliance growth and Boots spin-off

REWE expands e-commerce in Germany

After announcing it would not be reviving its online delivery service for discount banner Penny, the REWE Group is now planning to expand its ecommerce service across REWE supermarkets. The goal is to offer click and collect at over 2,200 stores versus the current 2,000 stores. Delivery areas will expand, while new features and improved processes will also entice more shoppers to use the service.

Michela Pearson, IGD Insight Analyst’s view:

One of the REWE Group’s strategic priorities is to perfect its online offering and this evolution will allow it to meet different shopper needs. The online landscape in Germany is changing rapidly, with intense competition from pureplay online retailers. The predicted additional sales in the online channel in Germany are over €1 billion between 2025-2029, making it an extremely attractive channel to invest in and expand.

EMD retail alliance welcomes new member

Finnish market leader S Group will become the latest member of EMD, and therefore the second largest alliance by members revenue in Europe. S Group will start benefiting from EMD’s negotiations on cross-border services and marketing concepts with international brand manufacturers from 2026.

Dan Butler, IGD Senior Insight Analyst’s view:

Continued consolidation in European markets is growing the appeal of retail alliances for retailers wanting to remain competitive. It is vital for suppliers wanting to succeed in the European market to understand the structure and functions of these alliances. Look out for our new European retail alliance report, which will be released later in September 2025.

Boots spins off from Walgreens Boots Alliance to form The Boots Group

The move follows a private equity takeover, positioning Boots to operate independently as The Boots Group. The new business will include Boots UK and Ireland, Boots opticians, No7 Beauty company, and pharmacy operations in Thailand, Mexico and Germany. Ornella Barra, formerly COO of Walgreens Boots Alliance’s international division, will lead the new group.

Stephanie Leung, IGD Insight Analyst’s view:

Boots’ independence may prompt other health and beauty retailers to reassess their strategic models, especially those balancing global scale with local relevance. As Boots sharpens its focus on category innovation and in-store experience, suppliers could see shifts in sourcing priorities and collaboration formats. This will likely influence competitive dynamics, encouraging rivals to accelerate transformation in pharmacy services, beauty retail, and other shopper engagement strategies.

Asia-Pacific: Woolworths results, AI theft prevention and store closures

Woolworths Group FY25 sales increase to AUD69.1 bn

This was a 3.6% rise on a normalised basis (adjusted to remove the impact of the 53rd week in FY24). Australian Food sales grew a normalised 3.5%, however EBIT declined by 10.5%. Performance was impacted by industrial action in H1 25, incremental supply chain commissioning and dual-running costs. Ecommerce sales grew by a normalised 17.4%, bringing penetration to a new record of 15.1%. Meanwhile, New Zealand Food sales grew a normalised 3.4%, with ecommerce growing 17.1%. EBIT was up a normalised 40.6% in FY25, after a 57.2% reduction in FY24.

Tan Soo Eng, IGD Senior Insight Analyst’s view:

Woolworths Food in Australia faced a tough year with modest growth and a double-digit profit decline, despite digital gains. High operating costs and disruptions weighed heavily, prompting aggressive turnaround measures including restructuring the Australian Food pillar, improving retail execution and recovery from industrial action. The retailer will need time to rebuild its momentum and improve its financial performance.

Sheng Siong improves shop theft detection through AI facial recognition

Supermarket retailer Sheng Siong is rolling out facial recognition CCTV across all its stores in Singapore to reduce shrinkage, in collaboration with the Singapore Police Force. The AI-driven technology alerts staff when a shoplifter returns to any store. Detection rates for shop theft have increased after software installation, increasing from 4.91 per store in 2023 to 8 in 2024, demonstrating the effectiveness of this technology.

Jarred Neubronner, IGD Senior Insight Analyst’s view:

Rising costs of living has driven increased theft across various global markets. Improved technology like this AI facial recognition system implemented by Sheng Siong can help retailers deter theft, reducing overall shrinkage. When retailers are considering the implementation of similar AI software, they should prioritise multifunctional technology; for example, those that have the functionality to detect and deter theft, identify customer demographics and assess stock levels all at once, as this will drive operational efficiency at scale.

Homeplus closing 15 stores by 2026 as part of its M&A strategy

The store closures have been driven by failure to successfully agree rent reductions. Some affected stores have 10 years remaining on their lease, although Homeplus stated that it can no longer afford to pay. The closure of stores will bring down the store number to 102 by 2027.

Sabrina Wong, IGD Analyst’s view:

Since Homeplus filed for bankruptcy in March 2025, it has focused on recovery by adopting a merger and acquisition strategy. Homeplus is moving to consolidate its business by closing stores with lower profitability. However, this has led to lawsuits and demonstrations in South Korea, and therefore we can expect this to be a difficult consolidation process which may deter the potential buyers.

North America: Aldi store openings, Dollarama enters Australia

Aldi on track to open over 200 US stores in 2025

The discounter has made over 100 new store announcements and has already opened around 70 since the start of the year. 46 of these were former Winn-Dixie location, which Aldi acquired from Southeastern Grocers in 2023. It plans to convert dozens more by the end of the year.

Oliver Butterworth, IGD Senior Insight Analyst’s view:

This marks the biggest single year of store openings since Aldi first entered the market in 1976. The acquisition of Winn-Dixie has enabled the retailer to accelerate its expansion and we are likely to see Aldi make similar acquisitions in the future. Aldi’s announced future sites and the location of the Winn-Dixie stores that it still owns (40% were sold) suggest that it aims to strengthen its position in Florida, which will be a concern for Florida-based Publix.

Dollarama completes acquisition of The Reject Shop, securing a 395-store footprint across Australia

The Canadian value retailer plans to rebrand all stores under the Dollarama brand by the end of 2027. The rebrand will include a simplified price structure that will lower the current pricing ceiling, new layouts, new merchandising strategies, and a broader product range. The move marks Dollarama’s first direct international expansion beyond Latin America and is expected to drive long-term growth.

Stewart Samuel, IGD Director of Retail Futures’ view:

Dollarama’s acquisition of The Reject Shop extends its proven value model into a new continent. It comes amid continued strength in Canada and Latin America, where operational discipline and price leadership remain key differentiators. The Australian market offers scale but also intense rivalry from Kmart and Big W. With a defined roadmap and a disciplined rollout strategy, Dollarama is well-positioned to reshape the Australian discount landscape and strengthen its global standing in value retail.