Global roundup: retail partnerships and network expansion

Europe

Ongoing investments in online operations and mixed retailer results

Lidl France to launch click & collect. The discount retailer will add collection lockers to around 1,000 stores from July 2025, allowing shoppers to collect online orders of non-grocery products. Home delivery fees for online orders will also be reimbursed in the form of Lidl Plus coupons that can only be redeemed in-store.

Dan Butler, Senior Insight Analyst’s view: two great initiatives aligned to its omnichannel aspirations that can help to drive footfall to its stores, either to collect orders or redeem coupons. Lidl is increasing its efforts to make its non-grocery assortment relevant, so expect more developments in the near future. Rethinking non-grocery is one of the key five trends in our Global discount trends 2025 report.

The REWE Group reports 4.6% growth in 2024. The retail segment in Germany grew 3.2% to €41 bn (US$48 bn), driven by REWE’s focus on opening a greater proportion of franchised / independently operated stores. Growth for discount banner Penny in Germany was almost entirely driven by increased volumes. Penny was successful in international markets as well, driving most of the 4.6% growth in the Retail International segment of the business and helping sales surpass the €20 bn (US$23 bn) mark.

Michela Pearson, Insight Analyst’s view: the REWE Group is continuing to grow by investing in its store estate and in technology. It is making significant investment in its international operations to continue its successful growth trajectory, with discount banner Penny a key part of its strategy. It will also be expanding into a new market of operation next year, bringing drugstore chain Bipa to Bulgaria. Read our latest report: How the REWE Group is adapting in Austria.

Ocado and Bon Preu expand partnership in Spain. Catalonian retailer Bon Preu plans to build a Customer Fulfilment Centre (CFC) in Parets del Vallès. The CFC will be powered by Ocado’s in-store fulfilment solution, enabling Bon Preu to benefit from an even broader range, greater freshness and higher perfect order rate.

Lucy Beaumont, Senior Insight Analyst’s view: since 2018 Bon Preu has partnered with Ocado to boost its online presence in Catalonia and has seen great success especially in customer satisfaction scores. The launch of the CFC will create significant cost efficiencies and showcases the retailer commitment to growing it presence in the online channel, while generating a best-in-class customer experience. Check out our Spain country presentation for more information on Spain’s online channel.

Colruyt 2024/25 revenue increases by just 1.1%. Sales hit €11.0bn (US$13 bn), while net profits fell 6.4%. The Belgian market leader highlighted that performance was negatively impacted by increased competition, lower inflation and unfavourable weather. However, acquiring Match and Smatch stores from Louis Delhaize positively impacted revenue. Looking ahead, Colruyt will focus on driving productivity and delivering return on investment. This will be supported by its membership of a recently launched buying alliance, Vasco International Trading.

Harriet Cohen, Senior Insight Analyst’s view: Colruyt has been particularly challenged by the fact that a growing number of Belgian independent retailers are operating on Sundays. In joining Vasco International Trading, Colruyt also hopes to benefit from more favourable prices on A-brand suppliers. Find out more about buying alliances in our recent insight report.

 

Asia-Pacific

Homeplus seeks new owner, the expansion of TikTok Shop, plus new partnerships and health services

Homeplus is approved by court for merger and acquisition. The sale will help Homeplus repays its debts to creditors, while safeguarding employee job security in South Korea. It will now work with a prospective buyer to draft a new rehabilitation plan aimed at stabilising the company’s operations.

Sabrina Wong, Analyst’s view: low profitability and stagnant sales in Homeplus’ grocery business are two major obstacles for potential buyers. Additionally, most of the retailer’s sales come from hypermarkets, a channel currently struggling in Korea. Hence, the new buyer must be strategic in navigating in this challenging internal and external environment.

7-Eleven and Daniel’s Donuts new partnership in Australia. Daniel’s Donuts is a beloved brand in Australia with a dedication to quality, creativity and a connection to the community. It is a significant milestone for the bakery to go from a single store to reaching more customers across the country. For 7-Eleven, the partnership reflects the brand’s focus on delivering for customers, securing its position as the destination for donuts and sweet treats.

Tan Soo Eng, Senior Insight Analyst’s view:  7-Eleven has worked with different donut brands in Australia. The partnership with Daniel’s Donut is a move towards building a business that elevates the food experience and deepens community connection. Check out our global convenience trends report to learn more about driving growth in this channel.

TikTok Shop to launch ecommerce platform in Japan. TikTok could launch its ecommerce service within the next few weeks. Shoppers will be able to make purchases directly from the social media app, with products often promoted in videos and livestreams to drive purchases.

Jarred Neubronner, Senior Insight Analyst’s view: while TikTok’s products are mainly non-grocery, its entry into the Japanese ecommerce market would put it in direct competition with major pure plays such as Amazon and Rakuten, which have delivery services for both grocery and non-grocery. However, should TikTok’s service succeed and drive greater online shopping behaviour among Japanese shoppers, this could have a positive knock on effect on online grocery spending. Check out our Japan country presentation for more information on the grocery retail market.

Amazon India launches at-home diagnostic services. The retailer has partnered with Orange Health Labs to rollout the Amazon Diagnostics services, allowing shoppers to book lab tests, schedule appointments and receive digital reports through the Amazon app. It was first trialled in six cities across India, offering access to over 800 diagnostic tests. Shoppers can request doorstep sample collection within one hour and receive digital reports for routine test in six hours.

Sabrina Wong, Analyst’s view: Amazon has provided an accessible, reliable and convenient solution to the rising demand for quick medical services in India. If the pricing of the services is competitive, this could gain great traction in the market and tap into a new customer base.  Understand India’s grocery market through our India country presentation.

North America

Kroger refocuses prioritises, while network expansion picks up in Canada

Kroger to close 60 stores by the end of 2026. In its Q1 2025 results, the grocer outlined plans to close 60 underperforming stores, to support its overall business performance. Despite this, Kroger will proceed to carry out the 30 major store projects that it previously earmarked for 2025, and it has plans for to accelerate new store expansion in 2026. Sales for the quarter exceeded its expectations, with identical-store sales (ex-fuel) up 3.2% led by the strong performance of fresh, ecommerce and pharmacy. Digital sales grew by an impressive 15%, helped by an increase in users and improved wait times for store pick up.

Oliver Butterworth, Senior Insight Analyst’s view: Kroger remains on the hunt for a permanent CEO, following the departure of former CEO and Chairman Rodney McMullen in March. Another key priority is to continue to reduce costs throughout the business and reinvest savings into lowering prices and improving the customer experience. It plans to continue expanding its private label assortment and to make promotions “more visible” and “easier to access”. COO (and interim CEO) Ronald Sargent says its ecommerce business remains unprofitable, and there is still a “lot of work to do” to get it in the black.

Sobeys switches focus to new stores. Sobeys is accelerating its store growth strategy, planning to open 24 new stores in its new fiscal year, triple its recent average of eight per year. The shift is backed by an increase in capital expenditure to CAD$850m (US$620m), with half allocated to store network growth.

Stewart Samuel, Director of Retail Futures’ view: this marks a strategic pivot from the retailer’s prior focus on remodels during the transformation of the business over recent years. Management cited improved real estate capabilities and confidence in ROI from new space as key enablers. Sobeys is not alone in shifting its focus in Canada, with Loblaw, Metro and Walmart moving to increase the space of new openings over the next few years. Read our Canada country presentation to find out the latest happenings in the Canada grocery retail market.

Middle East

Sustainability developments in reverse vending

Majid Al Futtaim partners with Coca-Cola for reverse vending. Coca-Cola Middle East will sponsor five reverse vending machines (RVMs) at Carrefour stores across UAE. Majid launched its RVM initiative in 2023. Users can earn points for each item recycled by using the Sparklo app, Majid’s technology partner for the initiative. Users can redeem points for rewards from participating partners including savings at Carrefour stores and discounted taxi rides. The partnership is predicted to collect more than 1.8m plastic bottles and aluminium cans per year, with an average of over 1,000 containers per day, helping to contribute to CO₂ emissions reduction.

Rachel Sibson, Senior Insight Analyst’s view: this partnership will help the UAE Circular Economy Policy 2031, which targets a 75% reduction of waste in landfills by 2030 through promoting recycling and reusing material. Using incentive tactics, such as a point reward system is an effective way of encouraging shoppers to participate in the scheme and adopt more sustainable behaviours. Find out more about the latest developments in the Middle East in our Africa and Middle East page.