Discover how Europe's retail trends are evolving, from AI and health to sustainability and retail media.
At the start of the year, we identified five trends set to shape European grocery retail in 2026. Nine months on, the trends remain highly relevant, but retailers are increasingly focused on execution rather than experimentation. From AI and health to sustainability and retail media, the emphasis is now on scaling initiatives that deliver measurable value for shoppers and businesses.
Value remains essential, but smarter value is emerging
Economic pressures have eased slightly in some markets, but consumers remain highly value conscious. Retailers continue to sharpen their price credentials, with EDEKA investing in entry-price ranges to improve its price perception and compete more effectively with discounters.
However, value has evolved beyond simple low prices. Retailers are increasingly helping shoppers maximise their budgets through meal solutions, personalised recommendations and affordable healthy eating initiatives. Lidl’s launch of £1 Planet Plate recipes with One Pound Meals creator Miguel Barclay is a good example of how retailers are focusing on helping shoppers get more from their food budget.
The result is a broader definition of value, one that combines affordability, convenience and relevance. Retailers that can clearly communicate this wider proposition are likely to strengthen shopper loyalty.
Retail media matures into a strategic growth engine
Retail media has continued its rapid expansion and is increasingly becoming a core part of retailers’ growth strategies.
Retailers are expanding their media capabilities beyond traditional digital advertising. Lidl is strengthening its online retail media proposition through a partnership with Criteo, enabling brands to target shoppers more effectively using retailer first-party data and helping Lidl monetise its growing digital ecosystem.
Coop Norway is scaling its in-store retail media network following a successful pilot in 32 hypermarkets. The retailer has partnered with ZetaDisplay to roll out digital screens across its Extra store network, giving brands greater opportunities to reach shoppers at the point of purchase and demonstrating growing retailer confidence in retail media as a new revenue stream.
The evolution of retail media is not simply about selling advertising space. Retailers are building more sophisticated ecosystems that combine loyalty data, digital engagement and in-store touchpoints to create measurable outcomes for brands.
As profitability pressures persist, retail media is becoming an increasingly important source of margin growth and a key capability in retailer-supplier partnerships.
AI moves from experimentation to everyday retail
AI is no longer a future capability. It is becoming part of both the shopper experience and retail operations. Carrefour Belgium’s launch of a ChatGPT-powered shopping assistant highlights how conversational commerce is moving into the mainstream, while Jumbo has introduced its own AI agent to support online shoppers.
Behind the scenes, retailers are also scaling AI to improve efficiency. Eurocash is using image recognition to monitor shelves and store standards, Tesco is trialling shelf-scanning robots to identify availability gaps, and Denmark’s Salling Group is testing robots to address labour shortages. AI is even being applied further up the supply chain, with REWE launching a project that uses AI to support animal welfare monitoring.
The shift is significant. Retailers are no longer asking whether to adopt AI, but where it can create the greatest value, whether through shopper engagement, productivity gains or operational resilience.
Health becomes a growth platform
Health and wellbeing has moved from a responsibility agenda to a strategic growth opportunity. Across Europe, retailers are expanding ranges, services and interventions that support healthier lifestyles.
Albert Heijn is taking a holistic approach to healthier eating. Alongside expanding its private label high-fibre range, the retailer has introduced AH HamsterChef, a digital tool designed to help families with young children plan meals and make healthier food choices more easily. Combined with broader efforts to improve nutritional guidance and product availability, the initiative reflects a shift away from simply offering healthier products towards actively helping shoppers build healthier habits.
Health is also becoming more personalised. EDEKA's partnership with the Longevity Forum Germany reflects growing interest in healthy ageing and preventative health, while retailers are beginning to respond to emerging trends such as the rise of GLP-1 weight-loss medications. Ocado's dedicated aisle for GLP-1 users is an example of how retailers are adapting ranges and merchandising to meet the changing dietary needs of consumers using GLP-1s, from smaller portions to nutrient-dense foods.
The trend has evolved from simply offering healthier products to actively helping consumers achieve their health goals. Whether through nutritional innovation, behavioural nudges or increasingly personalised solutions, health is becoming a more important source of differentiation and growth for retailers and suppliers.
Sustainability shifts from promise to proof
Sustainability remains important, but the focus is increasingly on measurable outcomes and regulatory compliance. The implementation of the EU Packaging and Packaging Waste Regulation, including restrictions on PFAS in food-contact packaging, is accelerating action across the sector.
Retailers are responding with practical initiatives. Carrefour has strengthened its ambitions around plastic reduction, while Aldi and Arla are trialling smart packaging that can track recycling behaviour and increase transparency.
Instead of broad sustainability commitments, retailers are prioritising initiatives that can demonstrate impact, whether through packaging reduction, recyclability, emissions reduction or improved traceability.
Where the opportunities lie
Across all five trends, the focus has shifted from strategy to implementation. Retailers are increasingly scaling initiatives in areas such as AI, health, sustainability and retail media, while suppliers are looking for ways to support these priorities through innovation and collaboration.
For retailers, the opportunity lies in turning these trends into stronger shopper engagement, improved efficiency and new revenue streams. For suppliers, the focus is increasingly on helping deliver against these objectives, whether through healthier product development, AI-enabled solutions, sustainability initiatives or retail media partnerships.