Global round-up: sustainability initiatives, supply chains and financial results

Europe

Lidl launches new sustainability website in Switzerland

The German discounter has made its messaging around sustainability more transparent and accessible with a “Gesagt, Getan” (Said, Done) website. It features facts, figures and projects in a user-friendly interface, designed to make sustainability more tangible and to highlight Lidl’s commitment to the cause. The launch coincides with its latest sustainability report, and the launch of its new sustainability magazine.

Michela Pearson, Insight Analyst’s view:

Sustainability continues to be a key part of retailer strategies, particularly those initiatives that shoppers can see and engage with both in and out of store. Lidl’s initiative to go beyond publishing an annual sustainability report and launching a dedicated page and accompanying magazine will help it stand out from competitors and attract environmentally conscious shoppers. Keep an eye on IGD’s sustainability page next week where our global Q3 Sustainability Update will be going live.

Salling Group invests in resilience

Amidst the growing threat of cyberattacks, risks to security and extreme weather, the Danish market leader is preparing to ensure that 50 of its grocery stores can remain open for at least two days ‘even without power or connection to the outside world’. This will mean that by 2028, 80% of the local population can reach an emergency store within a 50-kilometre (31-mile) radius. These 50 stores will include all hypermarkets, the biggest Føtex supermarkets and select Netto discount stores.
 

Harriet Cohen, Senior Insight Analyst’s view:

This development demonstrates how Salling Group is investing in resilience. Earlier this year, the retailer created an emergency supply box to support shoppers with a stockpile of products in the event of a crisis; building resilience will be a global trend impacting the grocery industry in 2026 and beyond. A growing number of retailers will invest in strategies to future-proof their grocery retail operations against disruption, which may include geopolitical shocks, climate events, supply chain volatility and cyber threats.

Biedronka strengthens its supply chain

The discounter has announced the development of two new modern warehouses in Poland, located in the towns of Sokołów Małopolski and Opoczno. The move will bring greater resilience to its supply chain and facilitate further network growth.

Dan Butler, Senior Insight Analyst’s view:

Biedronka is desperate to maintain its market leadership position, with increased competition from the expansion of Dino and other discounters, such as Lidl and Aldi. This will put further pressure on hypermarket and convenience operators in Poland, with Biedronka increasing its accessibility to shoppers.

Asia-Pacific

Increased sustainability efforts through solar power and local sourcing 

Aldi Australia expands Aldi Solar to the east coast

Aldi Solar brings a simple, affordable solar and battery package solution to consumers seeking energy savings. Developed in partnership with trusted Aldi partner, Tempo, the roll-out builds on the success of a trial in Victoria. Simon Padovani-Ginies, Group Director at Aldi Australia, said,

With straightforward pricing, flexible battery options, installation by certified experts and an exceptional payback period, Aldi Solar puts power back in the hands of households ready to take control of their energy costs.

Tan Soo Eng, Senior Insight Analyst’s view:

Aldi Solar aligns with Aldi's values of affordability, simplicity, consistency, and responsibility. It will help Australia’s transition to renewable energy and homeowners to lower their cost-of-living long term. Aldi in Australia was the first Australian supermarket to commit to and achieve 100% renewable electricity, powering all its stores, offices, and warehouses with renewable energy by July 2021.

Nestle Malaysia innovates with locally sourced ice cream and coffee

Nestle has launched a variety of products locally sourced in Malaysia to support the local agricultural industry. Its KitKat Dark Borneo Chocolate Ice Cream contains single origin cocoa beans sourced from the Malaysian states of Sabah and Sarawak. Meanwhile, it has introduced NESCAFÉ 3-in-1 White Coffee made from coffee beans from the Malaysia state of Kedah.

Jarred Neubronner, Senior Insight Analyst’s view:

Nestle Malaysia’s local sourcing initiatives for its new products aligns with the ‘Making a positive impact’ quadrant of IGD’s Store of the Future framework. Through local sourcing, Nestle helps support local communities such as farmers, and contributes to greater sustainability efforts as locally sourced products will have a lower carbon footprint.

North America

Strong quarterly results, plus Loblaw’s South Asian online store

Kroger’s Q2 results beat expectations

Sales in the quarter grew 3.8%, with same-store sales (ex-fuel) up 3.4%. It has raised the outlook for same-store sales for the fiscal year, which are now in the range of 2.7% to 3.4%, up from 2.25% to 3.25%. Its results were driven by the strong performance of its ecommerce and pharmacy businesses, as well as the robust sales of its fresh category. Ecommerce sales were up 16% with gains seen in both new customers and increased spend from existing ones.

Oliver Butterworth, Senior Insight Analyst’s view:

This quarter, Kroger’s ecommerce delivery outpaced Pickup for the first time. This will be a cause of concern, given the high costs associated with home delivery. To improve profitability, Kroger is increasing its focus on store-fulfilled deliveries, and utilising retail media revenue to offset last mile costs. While Ocado in partnership with Kroger announced plans to open a further two automated fulfilment centres in fiscal 2026, Kroger is evaluating the viability of each of its existing ones, with further detail on the future of these locations to be announced in Q3.

Loblaw has launched an online one-stop shop designed to serve the South Asian community

Apni Dukaan, meaning “Your Store” in Hindi, is an online platform that brings together a curated range of South Asian brands, ingredients, and festive essentials, with the convenience of home delivery or store pickup in Canada.

Stewart Samuel, Director Retail Futures’ view:

This launch is a sign of the increasing importance of South Asian consumers in the Canadian grocery landscape. Representing over 7% of Canada’s population, this consumer segment brings strong demand for culturally specific, and personalised experiences. Launching just ahead of Diwali ensures the platform meets consumers when demand is highest. It also positions Loblaw to capture emotional and commercial value, especially through its positioning in the main navigation of PC Express.

Sobeys’ Q1 results revealed a standout 63bps gross margin expansion

These results mark 27 consecutive quarters of improvement. What’s notable is that this has been driven by improved execution, leveraging advanced analytics, promotional mix control and shrink reduction, rather than price increases. In the year ahead, the retailer plans to open around 20 new stores, renovate up to 25% of its network, and expand its private label ranges through increased distribution and product innovation.

Stewart Samuel, Director Retail Futures’ view:

These results reflect a business that’s developed the tools and capabilities to drive margin growth through operational excellence in a competitive trading environment. Sobeys is embedding predictive analytics into everyday decision-making, aligning with tighter planning cycles and cleaner execution. Investments in digital and data, including personalization via Scene+, promotional optimisation, and the national rollout of its SAP S/4HANA ERP platform, will further enhance execution and the customer experience.