This edition of our roundup on Europe brings together:

• Auchan’s store transformation strategy

• Ahold Delhaize’s Belgian acquisition approved

• Kaufland’s refreshed loyalty scheme

• Edeka’s sustainable infrastructure

• Axfood’s 2025 financial results

Auchan rolls out supermarket transformation project

Auchan Retail is accelerating its supermarket transformation after a full review of its 266 supermarket stores. It is partnering with Groupement Mousquetaires, aiming to restore the supermarket format to its full performance. The retailer plans to shift 164 supermarkets into a new autonomous entity operated under Intermarché or Netto franchises, giving these stores access to a leaner operating model, a three‑year redesign programme and Groupement Mousquetaires’ specialised supply chain.11 supermarkets will stay within Auchan Retail France under alternative formats, while 91 sites, due to their economic or geographic profile, are up for potential sale to Groupement Mousquetaires, with member decisions expected in April. The move reflects Auchan’s broader strategy to become a more agile, multi‑format operator while continuing to invest in the evolution of its hypermarkets. The project is still subject to employee consultation and competition authority approval.

Senior Insight Analyst, Rachel Sibson’s view:  Auchan’s strategy reflects the wider pressure on supermarkets across Europe, where rising costs and strong discount competition are pushing retailers to rethink their networks. Partnering with Intermarché gives Auchan the opportunity to improve prices, modernise stores and simplify operations, while allowing it to focus more sharply on its hypermarket and omnichannel strategy. It’s a major shift, but one that aligns with a broader trend of retailers becoming more flexible, more collaborative and more focused on formats that can deliver value and efficiency in a competitive market.

Ahold Delhaize receives approval for Delfood acquisition

Ahold Delhaize has received approval from the Belgian Competition Authority to acquire Delfood, owner of the Louis Delhaize retail chain, but must meet several conditions. These include divesting seven convenience stores under its Proximity and Shop & Go banners and granting greater contractual freedom to non‑franchised stores to maintain fair competition. Around 303 convenience stores will be converted to the Delhaize banners

Insight Partner, Dan Butler’s view: the acquisition strengthens Ahold Delhaize’s position in Belgium’s convenience segment, increasing competitive pressure on other operators. However, the required store divestments and safeguards for independent retailers aim to preserve local market balance.

Kaufland launches futuristic loyalty programme for German Shoppers 

Kaufland Card Xtra will be available in Germany from Thursday 12 February, providing shoppers with a more personalised and omni-channel rewards experience than ever before. The improved mobile app will simplify the user experience; one Euro spent earns one point in the app. Points can then be redeemed across any of Kaufland’s retail channels, be that directly in store, on their online marketplace, within other loyalty schemes, or with the retailer’s partners. The app will also use previous purchasing data to create weekly personalised coupons for the user, giving shoppers targeted savings opportunities and a very good reason to choose Kaufland for their weekly shop.

Analyst, Theo O’Flynn‘s view:  With the launch of this scheme, Kaufland will become one of the first European retailers to fully embrace the future of technologically enhanced retail. We have long predicted the move towards more personalised shopping experiences and omni-channel integration; Kaufland have managed this with a single app update.

Edeka Minden-Hannover expands low-carbon infrastructure for 2026

Edeka Minden-Hannover is accelerating the shift towards low-carbon operations in 2026. To support its electric fleet, the German retailer plans to expand its network of renewable-powered charging stations, including fast-charging points. Additionally, Edeka Minden-Hannover plans to increase the use of bio-LNG across its logistics operations, with expected savings of around 45,000 tonnes of CO2 per year. The retailer also plans to introduce 30 additional photovoltaic systems, building on the 15 added in 2025. These will supply a significant share of the energy required for store operations, including refrigeration systems, forklifts, and administrative facilities.

Supply Chain Analyst, Soline Duriez’s: Edeka Minden-Hannover's plans show how decarbonisation is increasingly being driven through supply chain infrastructures. By investing in cleaner fuels, renewable-powered charging and on-site energy generation, the retailer is focusing its efforts on operational areas that deliver tangible impact.

Axfood reports strong Q4 and full year results

The Swedish retailer delivered growth ahead of the market for the 11^th year running in 2025. This was driven by increased shopper traffic and higher volumes. Retail sales across the year increased 16.4% to SEK 79.2 bn (€7.5 bn), and 5.9% excluding City Gross which the retailer acquired in 2024. In Q4, Axfood reported retail sales increased 8.7% to SEK 20.5 bn (€1.94 bn). The retailer’s discount banner, Willys, increased sales by 5.4% in Q4. Its supermarket banner, Hemköp, also performed well with a 5.3% sales increase during the quarter. City Gross continued progress with like-for-like sales growth. Axfood said it will continue its plan to strengthen the hypermarket chain and turn it into a long-term competitive hypermarket player.

Senior Insight Analyst, Rachel Sibson‘s view: Axfood’s results highlight the continued strength of value-focused retail in Sweden, with discounter Willys again driving outperformance through a clear price position. However, Hemköp’s growth shows the supermarket format can remain resilient when supported by targeted differentiation. City Gross’ like‑for‑like progress is encouraging, but the banner’s long‑term competitiveness will depend on sustained investment in price, range and experience. Axfood’s momentum reinforces the need for propositions that support value, efficiency and format relevance.

 

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