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

• Żabka eyes further expansion in Europe.

• Intermarché enhances its loyalty proposition.

• Lidl Germany improves online retail media offering.

• Penny Austria launches price promotion.

• Albert Heijn invests in non-food private label range.

Incoming Żabka CEO targets European Expansion

Tomasz Blicharski, newly named as the convenience chain’s incoming CEO, is set to drive Żabka’s expansion into additional European markets. This follows the success of the Polish retailer’s 2024 expansion into Romania, where it now operates over 200 stores. New markets and locations will be selected with the help of Żabka’s AI site-selection tool. This has already shown effectiveness in processing data on over 9 million Polish addresses to select sites for new stores as the retailer aims to open around 1,300 per year.

Analyst, Theo O’Flynn‘s view: Żabka’s expansion has the potential to make the retailer a true regional powerhouse. The quality and value of its offering have made it extremely popular among shoppers. With well targeted expansion and investment, there is no reason to think it will not be successful in new markets. Alongside this, 7-Eleven's persistence in its plans to expand in Europe may begin a time of transformation in European convenience retail.

Intermarché improves its loyalty programme

Intermarché has adjusted its loyalty programme to better serve shoppers, the two main changes include the integration of its beauty brand Mäy alongside existing private label ranges. The second change is its improved the positioning for large families, meeting the growing demand for more benefits. The loyalty scheme has multiple benefits including but not limited to; 5% daily discount on products from the Pâturages, Paquito, Fiorini, Labell, and Mäy brands, starting with the purchase of three or more items. The more you shop the more you save with 10% discount starting with your fourth visit in a singular month.

Senior Insight Analyst, Lucy Beaumont’s view: with an unstable economic climate, Intermarché has improved its loyalty scheme to keep up with the increasing demand for more value, as shoppers face higher living costs. The retailer is stepping up its price investments to improve its value image and compete more effectively with Leclerc. Intermarché has a notable community element to its loyalty scheme, offering tailored discounts to large families, students, shoppers with babies and those with smaller budgets, going an extra mile to meet different shopper needs.  

Lidl Germany steps up its retail media push

Lidl is accelerating its retail media strategy by partnering with adtech firm Criteo to enhance advertising on its online platform, Lidl.de. The collaboration will expand Lidl’s retail media offering with new formats such as sponsored product ads and onsite display placements. This move follows a broader restructuring of Schwarz Group’s retail media operations, with Lidl taking more direct control of its advertising business to drive growth and improve the shopper experience.

Insight Partner, Dan Butler’s view: this strengthens Lidl’s ability to monetise its growing online traffic while offering more sophisticated, data-driven advertising solutions to brands. Suppliers will gain greater access to targeted digital placements and measurable campaigns but may also face increased pressure to invest in retail media to maintain visibility and competitiveness on Lidl’s platform.

Penny launches cost-of-living campaign in Austria

The REWE Group’s discounter has lowered prices on a wide range of products as part of its “prices like the old days” campaign. Following consumer research showing that around a quarter of Austrians are cutting back on spending due to the higher cost of living, the initiative provides an average discount of 38%.

Senior Insight Analyst, Michela Pearson’s view: the Austrian market is incredibly competitive when it comes to price and promotions, and Penny’s strategy to bring back historically low prices will help solidify its value credentials, although it will struggle against Aldi. This campaign is part of a wider investment in the offer and network, with widespread price reductions earlier in the year, and €90mto be invested in store modernisations over the next three years.

Albert Heijn improves non-food assortment

The Dutch retailer is investing in further developing its Blue Home private label range of home appliances. Since its 2024 launch, the range has been steadily expanded with new products and features, with around 60 products currently available. Alongside this, there is visibly more in-store activation, helping to build awareness and drive engagement with the range as it scales.

Insight Partner, Dan Butler’s view: Albert Heijn is looking to capitalise on the recent closure of household goods providers in the market, offering quality and affordable products to shoppers. Suppliers have an opportunity to partner with Albert Heijn as flexible manufacturing and innovation partners, supporting rapid private-label expansion while co-developing differentiated products and features. 

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