Europe

New buying alliance, AI innovation and 2024 results

Carrefour and Coopérative U announce new buying alliance Concordis for purchasing. Concordis will start in 2026 and have an initial 6-year term, subject to approval from the French Competition Authority. The two retailers are reportedly already in talks with others to join the alliance, while Coopérative U is also due to join Unlimitail, Carrefour’s joint venture with Publicis, to further develop its Retail Media strategy.

Michela Pearson, Insight Analyst’s view: the European retail alliance landscape has seen quite a few shifts recently; EMD welcomed Lotte amid Kaufland’s departure, Coopérative U left Epic Partners and Everest, and this new alliance will likely be the catalyst for further movement. It will also allow Carrefour and Coopérative U to be more competitive on prices, passing savings onto their shoppers amid continuously high cost-of-living, with an estimated combined buying power of €104 bn in 2026.

Lidl Switzerland trials an AI-supported tool for managing climate data. The discounter will use AI to calculate and share products’ CO2 footprint in a consistent way through a partnership with climate technology company Mondra. Mondra’s AI-powered platform will enable Lidl to measure emissions at the product level and make data-driven decisions to reduce CO2 emissions. Mondra said the partnership will provide the necessary tools to work with suppliers and the agricultural sector to improve performance along the value chain.

Rachel Sibson, Senior Insight Analyst’s view: this new initiative supports Lidl’s climate goals of achieving net zero by 2050. In the future, AI will be key in making the food industry more sustainable through the value chain and we expect to see more development in this space with AI optimising energy consumption, streamlining logistics, and reducing waste. Read more about how AI is changing the food and grocery industry here, and how agentic AI could reshape the online shopping journey here.

Gruppo VéGé sees strong growth in 2024. The Italian retailing group saw turnover rise 4.6% to €15.3 bn. An ambitious target of €20 bn by 2030 was also shared, which will be supported by strong expansion. Investment in its new digital platform VéGé Data Sharing 3.0, which shares real-time data from over 2,200 stores with suppliers, will also help foster better collaboration and drive further growth.

Michela Pearson, Insight Analyst’s view: Gruppo VéGé has seen strong growth over the last few years, and the latest results show them growing slightly ahead of players like Selex and Italian market leader Conad. Further growth to €16 bn is on the cards for 2025, with an investment of €265m for 95 new store openings planned across its multi-channel estate. The Italian retailing landscape remains highly competitive, and with Carrefour’s stores up for sale, there will be opportunity for further growth.

Asia-Pacific

Online developments, operating profit success and new concept stores

Aldi Australia launches home delivery with DoorDash tie-up. Aldi Australia is teaming up with DoorDash to trial grocery delivery in Canberra. It includes 1,800 products like fresh fruit and vegetables, meat, seafood, dairy and household essentials. While Aldi’s availability on DoorDash is temporarily limited to Canberra, the partnership is expected to roll out across the country, bringing convenience to more Australians nationwide.

Tan Soo Eng, Senior Insight Analyst’s view: online penetration has reached 11.3% for Coles and 14.2% for Woolworths, therefore it is about time Aldi enters the online space. Partnering with DoorDash means Aldi does not have to build its own infrastructure, however there will be operational challenges it needs to consider. Its stores can get very busy at the weekends, so ensuring the shopper experience is not disrupted is key. Product availability will also be a challenge as Aldi stores are often quite empty after the peak weekend shopping hours. Read more about the Online channel in our latest trends report here.

Seven & i Holdings enjoys strong quarter in operating profits. The retailer’s Q1 revenue grew by 1.6% to JPY2,777 bn (US$18.8 bn), driven by revenue increases in its international convenience operations outside of Japan. Most notable was its operating profit of 9.7%, aided by greatly improved margins in its international convenience business and its Japan-based larger format banners like Ito Yokado.

Jarred Neubronner, Senior Insight Analyst’s view: Seven & i Holdings’ strong performance this quarter is timely amidst Couche-Tard’s attempted takeover as it will strengthen Seven & i’s negotiating power. The retailer will continue to strive for high margins through focusing on value-added elements such as its foodservice and Seven Café offering and products, while continuing to grow its high-margin private label range.

GS25 partners with Don Quijote on pop-up store. This collaboration brings private label products from Don Quijote, the Japanese leading discounter, into GS25’s retail space. The assortment includes both grocery and non-grocery products, such as homeware and cookware. The images of Don Quijote’s mascot and Japanese slogans are featured throughout to mimic the design of a Don Quijote store. This pop-up store will last until 1^st August in The Hyundai Seoul department store.

Sabrina Wong, Analyst’s view: one of GS Retail’s strategies is to roll out new concept stores in collaboration with brands across FMCG and other industries. Examples of previous concept stores include a collaboration with Coca Cola as well as various local baseball teams. This collaboration with Don Quijote brings new products to shoppers, helping the retailer to differentiate from competitors in terms of product range, and reach loyal shoppers of the partnering brand, that may be new to the retailer.

North America

Private label growth and acquisitions

Private label growth continues to outpace national brands. According to data from PLMA and Circana, private label sales were up by 4.4% in H1, versus national brand growth of 1.1%. Unit sales were up 0.4%, while national brands declined 0.6%. Private label saw gains across numerous categories, with the biggest uplifts in refrigerated foods (10.5%), beverages (4%) and pet (2%). The unit share for private label is now 23.2%, representing a 2.7% growth since 2023.

Oliver Butterworth, Senior Insight Analyst’s view: I have seen a continuation of private label innovation as grocers are exploring new ways to lure shoppers away from mainstream brands. Kroger turned its focus to “exciting, trendy items”, launching products with unique flavours, Target partnered with well-known chefs on a new range of entrees, Albertsons and Stop & Shop created limited time ranges to drive excitement, and CVS revamped its health-focused label with eye-catching packaging. We will see further innovation in H2, as retailers aim to broaden their appeal among price-conscious shoppers, while improving margins.  

Walgreens to become privately held for first time in its nearly 100-year history. The drugstore operator is set to be acquired by private equity firm Sycamore Partners for US$10 bn, and the transaction is expected to close in the second half of the year. Close to 96% of shareholders approved the deal and they will receive US$11.45 per share in cash. Tim Wentworth, Walgreens CEO, said “this acquisition aims to put the business in a “better position to accelerate [its] turnaround strategy”.

Oliver Butterworth, Senior Insight Analyst’s view: Walgreens’ front-of-store sales (drugstore, non-pharmacy revenue) have been on a downward trajectory, declining a further 5.3% in its Q3 2025 results. It attributed this to store closures and weakened sales in grocery, household, health & wellness, and beauty categories. In October 2024, Walgreens announced plans to close 1,200 underperforming stores over three-years.