Global roundup: sustainability, value, and agentic AI

Europe

Value, leadership changes, omnichannel developments and sustainability

Lidl Germany to unify prices. The discounter is set to standardise prices across its 39 regional subsidiaries in the German market. It had previously run differentiated pricing to compete with Aldi Nord and Süd, but it now aligns to its global strategy of ‘one market: one price’.

Dan Butler, Senior Insight Analyst’s view: Lidl is looking to simplify its value messaging and gain trust from shoppers in the battle for price leadership in the German market. This could reduce some complexity for suppliers but increase pressure on margins, limit regional flexibility, and shift more negotiating power to Lidl.

Aldi Nord has appointed new group and regional CEOs. Torsten Hufnagel, who has worked with the discounter since 1997 and took on the role as CEO in 2018, will be stepping down at the end of the year. He will be succeeded by Nicolás de Lope, who is a member of the executive board. Other areas of the business will also see new CEOs before the end of the year; Dirk Moyaert will take on leadership of Belgium, and Alexander Frech will be head of Portugal.

Michela Pearson, Senior Insight Analyst’s view: Aldi Nord is on a strong growth path and will seek to continue this with new leadership. For the group and Belgium CEO positions, Aldi has looked internally and is bringing several years of Aldi experience to the roles. In Portugal’s case, Frech has extensive discount experience in the market, having previously been CEO of Lidl. Portugal is one of Aldi Nord’s growth markets – read all about it in the latest update of the Strategic Outlook for Aldi, coming to Retail Analysis in early November.

dm launches click and collect lockers in Italy. The lockers are currently available in 16 stores across Italy, allowing shoppers to collect products in as little as two hours if they are available in store. A further rollout is planned to new and existing locations around the country. dm already has lockers in several other markets, including Germany.

Michela Pearson, Senior Insight Analyst’s view: while online does not have huge market share in Italy, it is growing rapidly and retailers across the country are investing in the channel. dm already has a strong digital presence in the channel with its app and reported an impressive 170% ecommerce growth in 2024. The addition of click and collect lockers to stores will help it achieve further growth in the channel, driving footfall to stores and creating a true phygital experience for its shoppers.

Arla Foods installs electric heat pump to cut emissions at Danish site. Arla Foods has introduced high-temperature electric heat pump technology at its milk powder facility in Svenstrup, Denmark, aiming to cut supply chain emissions. While heat pumps are already being used across several facilities, the technology is being scaled up for the first time to meet the demanding energy needs of spray drying. This new system, which uses CO2 for both heating and cooling, is expected to reduce annual emissions by over 1,500 tonnes. Arla Foods plans to explore broader deployment of this technology as part of its strategy to decarbonise operations and meet its 2030 climate targets.

Soline Duriez, Supply Chain Analyst’s view: with the electrification of spray drying, Arla Foods has successfully tackled a major technical hurdle. With this move, the manufacturer is not just reducing emissions across its supply chain, it’s also showing how food manufacturers can scale climate action without compromising performance. For more sustainability initiatives from retailers and manufacturers around the world, visit our sustainability hub.

Asia-Pacific

Focus on sustainability and health

CP Axtra aims for zero food waste by 2030. CP Axtra, operator of wholesale and retail banners under Makro and Lotus’s in Thailand, has reaffirmed its commitment to sustainability by implementing end-to-end food waste management. The Makro Samut Prakan branch is an example of a Zero Food Waste model store, achieving 100% reduction in waste sent to landfills. Food waste from store operations is supplied to farmers for use as animal feed, processed into compost and bio-liquid fertiliser. This has helped reduce farming costs by over 80% while promoting a circular economy that benefits farmers, communities, and the environment. All stores will gradually adopt this approach to enable CP Axtra to achieve zero food waste by 2030.

Tan Soo Eng, Senior Insight Analyst’s view: this sets a new benchmark for sustainability in Thailand. It may also lead to cost savings for waste disposal and stronger relationships with the farming community for CP Axtra. Achieving 100% food waste diversion at one model store is promising but scaling it successfully across 2,600 stores can be a substantial operational challenge. Nonetheless, this initiative aligns with global sustainability trends and competitors may be pressured to adopt similar waste management models to avoid lagging in sustainability.  

Indonesia’s food labelling rules to begin in two years. Indonesia has given food and beverage companies two years to confirm to new food labelling regulations for products high in salt, sugar and fat. This comes after lobbying by the US, regional food trade groups and domestic manufacturers to prevent an immediate implementation of the new ruling.

Jarred Neubronner, Senior Insight Analyst’s view: the new food labelling rules are reflective of the growing focus on health among various stakeholders in the food industry, ranging from governments to retailers, suppliers and increasingly health-conscious shoppers. Suppliers in Indonesia will need to ensure their products and packaging comply with the impending regulations. They should also consider innovating with healthier choices for their products, whose favourable labelling under the new regulations could make them more appealing to shoppers.

North America

Agentic AI and fulfilment

Walmart integrates ChatGPT for AI-first shopping experiences. The retailer is expanding its use of generative AI through a new partnership with OpenAI, enabling customers to shop directly within ChatGPT. This forms part of Walmart’s wider digital innovation strategy, using AI to simplify, personalise, and enhance the retail journey.

Stewart Samuel, Director of Retail Futures‘ view: Walmart’s integration of ChatGPT marks a significant step towards conversational commerce at scale. While many retailers are experimenting with AI assistants, few have taken the leap to embed transactional capability directly. By introducing personalised, contextual, and multi-media interactions that anticipate shopper needs, Walmart is redefining how AI can transform purchasing journeys from reactive to predictive.

Walmart Canada has opened its most advanced distribution centre. The 550,000 sq ft ambient distribution centre in Vaughan, Ontario, is equipped with advanced robotics, autonomous forklifts and automated storage and retrieval systems. It is designed to handle up to 70m cases per year while servicing 131 stores and two fulfilment centres throughout Ontario.

Stewart Samuel, Director of Retail Futures’ view: by automating high-volume logistics, the retailer can reduce lead times, improve inventory flow, and respond faster to demand shifts. That translates into improved availability, leaner operations, and stronger execution at the shelf. Crucially, it also lowers Walmart’s cost to serve, creating financial headroom to reinvest in pricing and reinforce its EDLP proposition in a highly competitive market.

Amazon opens same-day grocery delivery depot in Twin Cities, US. Amazon’s new same-day grocery depot spans 185,000 sq. ft. and enables it to complete fresh deliveries within hours. Quality checks remain critical in this rapid fulfilment and delivery model and the retailer has shared a six-point quality model that is essential to ensuring quality remains as speed increases. This facility strengthens Amazon’s supply chain agility, enabling rapid order processing and positioning the business to succeed through speed, scale, and operational precision.

James Rothwell, Head of Supply Chain Insights’ view: Amazon’s new same-day grocery depot accelerates fresh food delivery while streamlining operates within its network. This move reinforces Amazon’s speed advantage within the online grocery market. Over time we can expect to see more retailers making similar moves to keep up with customers increasing expectations for speed and flexibility.