In this instalment, our EU analysts offer their take on some of the market’s latest developments and initiatives. Here’s what you need to know about:

• Lidl’s new European store format

• REWE group’s international investment

• Carrefour’s latest sustainable initiative

• Czechia’s first autonomous store

Lidl rolls out new store format to Europe

The German discounter is introducing a new store format across several European markets. With new stores in Germany, the Netherlands, and Italy, the shopper journey has been greatly improved with the introduction of wider aisles, better navigability, and efficiencies such as self-checkouts. Fresh and bakery are the standout categories of front of store, and private label products are prominently highlighted in the middle aisle.

Insight Partner, Dan Butler’s view: Lidl is taking over Europe’s discount channel, with operations in over 30 countries and sales of €140bn. The new FK2025 store model highlights its commitment to continuously improving the shopper experience and bringing the best of its private label with a convenient, quality-rich journey in store. Read all about how Lidl is activating its strategy in store in our newest report, coming to Retail Analysis on 9 March.

Penny increases Czechia expansion

The REWE Group’s discount banner has announced a €112m investment plan for the market, focusing on modernising its store estate. On top of 25 new store openings, Penny will upgrade or rebuild almost 40 stores, bringing efficiencies and   improved shopper experience to its Czech network.

Senior Insight Analyst, Michela Pearson’s view: REWE Group is bringing several new developments to its international estate; last year, it rebranded and launched a new store format in Austria, and earlier this year it opened its first Bipa drugstore in Romania. Eastern Europe is a region ripe with opportunity for growth across several channels, and the REWE Group’s international strategy to capitalise on this early will likely see it succeed in the medium term.

Carrefour expands environmental labelling across non‑food textiles

Carrefour France has begun rolling out environmental labelling on nearly 70 private‑label clothing items, becoming the first French food retailer to apply this level of transparency to non‑food products. Shoppers can scan barcodes through the Clear Fashion app to see a score out of 100, based on a government‑defined life‑cycle assessment that measures factors such as greenhouse gas emissions, biodiversity impact, resource use, and pollution. Carrefour aims to use learnings from this pilot to extend the labelling across its full textile range.

Insight Analyst, Bently Briggs’s view: Carrefour’s move positions environmental impact scores as a new benchmark for textile shopping, building on the success of Nutri‑Score in food. By adopting a rigorous, government‑backed methodology and making data easily accessible to shoppers, Carrefour is setting a precedent for large‑scale, transparent sustainability labelling in European retail.

Fully and semi-automated 24/7 stores expand in Czechia

Czechia’s first fully automated store, operated by Klikni & vezmi 24/7, opened this week in Brno – an area close to university dorms and army barracks. This comes on top of Coop now operating 100 semi-automated 24/7 stores across the country, four years after opening its first. These function as regular stores during the day but utilise technology to remain open without staff outside of usual hours and are mostly found in small rural towns or near airports, hospitals, and petrol stations.

Analyst, Theo O’Flynn‘s view:   Automated stores have seen some criticism recently, with even Amazon unable to establish theirs in the US market. Czech retailers, however, have identified the true strength of this format. Rather than launching in busy urban areas to create buzz, they have identified these stores as a solution to sparsely populated areas where 24-hour demand exists, but labour is hard to come by.

Looking for more insight?

Subscribers can find out more on our Europe hub.