Three global hotspots driving hypermarket and supermarket growth

According to our latest research, large format grocery sales will reach $3.5trillion in revenue by 2029. Although large stores will remain the dominant grocery retail channel in value, they’re facing into rising competition from other formats.  

However, large stores are outperforming in a limited number of markets. In this article, we provide insight and inspiration on how select global markets are driving growth.

USA: remodelling and store openings at Walmart, Target, Kroger and elsewhere

Supermarkets will remain the dominant grocery channel in the USA to 2029, followed by hypermarkets. Combined, the two channels will account for almost 70% of the total grocery market.  

Walmart and Target are investing heavily in remodelling their hypermarket estates to elevate the in-store experience and drive relevancy. In Q1 2024, both retailers announced ambitious store opening plans. Walmart plans to open 150 new stores over a five-year period, while Target plans to launch 300 new stores over the next decade. In April 2025, Walmart opened its first ground-up Supercenter in four years. This forward thinking ‘next generation’ Supercenter, located in Cypress, Texas, will be the blueprint for future openings. Forthcoming new Supercenter openings are anticipated in Texas, Utah and California too. 

 IGD Retail Analysis subscribers can read more about how retailers are experimenting with concepts to drive sales and boost profitability in our new research, ‘Global large store trends 2025’.  

Elsewhere, while navigating the fall out of the failed merger with Albertsons, Kroger, North America’s leading supermarket retailer also plans to accelerate new store expansion in 2026. Meanwhile, there are numerous regional players that continue to innovate and expand within supermarkets. Publix, HEB, and The Fresh Market are among the most impressive.  

Our Walmart strategic outlook covers the retailer’s new store formats in more detail, while In-store excellence: USA 2025 demonstrates how retailers are aligning with our Store of the Future 2030 model.

New Zealand: Foodstuffs Pak N Save warehouse-style format is one to watch

Large stores over-index in market share penetration in New Zealand versus the regional average. The retail landscape is dominated by two key players, Foodstuffs and Woolworths New Zealand.  

Foodstuffs has been expanding its footprint in growing regions with Pak N Save, a unique warehouse-style format that emphasizes low prices. It will open a new 8,100 sq. m. store in Rolleston in October 2025, designed to meet local community’s long-term needs.  
 
This development demonstrates our ‘large store trends 2025’ report in practice, with a growing number of hybrid (B2B/B2C) wholesale/retail large format stores emerging globally. 

Pak N Save’s technological advances will allow it retailer to save on operational costs and reinvest to keep prices low. There will be 18 self-service checkouts, 60 hand-held scanners and eight staffed checkouts. There will also be a dedicated Click and Collect space.  

Meanwhile, sustainable store design will see the use of solar panels, EV chargers, natural refrigerants, LED lighting, and energy management systems. There is also extensive natural light and LED lighting, as well as a heat-reclaim unit for hot water to keep costs low.

Finland: one of the only European markets where large formats will gain share to 2029 

Large store formats remain key in Finland, accounting for around 60% of the grocery market. This channel allows the two leading retailers, S Group and Kesko, to showcase their breadth of range, counters, look and feel and unique product innovation. These elements help them differentiate with Lidl. 

Market leader, S Group attracts value-focused shoppers with its focus on everyday low prices. It has made significant investments in its private label, offering the right balance between affordable and high-quality products. It also excels in offering convenient meal solutions and inspiration, merchandising relevant products together. For example, its Chef’s Table concept brings all components together of two dinner solutions for shoppers to pick and customise their meals. One side of the fixture provides options for pizza while the other provides steak options. There’s also a selection of drinks and desserts at the end of the fixture. 

For Kesko, a key strength is the strategic emphasis on ‘store-specific business ideas’. Kesko retailers we’ve met are incredibly passionate and entrepreneurial, inspired and motivated to deliver truly stand-out innovation. Kesko stores continue to push the boundaries in enhancing the customer experience. Category designs and look and feel are carefully curated. The use of differentiated fixtures, signage, lighting and props creates appealing shop-in-shop zones. Creativity, attention to detail and an emphasis on quality combine to deliver outperforming stores to be famous for.