Migros, Salling, Axfood, Edeka and Kaufland reveal how European retailers are building resilience, growth and differentiation.
At a Glance
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:
Migros to merge into a single cooperative
The Swiss retailer is to undergo a major transformation, bringing its 10 regional cooperatives into a single entity (having previously considered merging them into three). The boards of the cooperatives voted unanimously in favour of the merger, and a vote for members is scheduled for mid-2027. Following the merger, CEO Mario Irminger and Migros Supermarkt AG CEO Peter Diethelm will leave their respective posts.
Senior Insight Analyst, Michela Pearson’s view:
Migros has undergone significant transformation in the last few years, shedding most of its non-core businesses to focus on its Swiss grocery retail offering. The decision to merge the cooperatives to streamline and unify processes is a good one; key competitor Coop Schweiz did the same in 2001. However, Migros must ensure it does not lose the regionality it has built over the last century, as shoppers will; continue to expect this.
Salling builds resilience into the store network
Salling Group is progressing plans to establish 51 emergency stores across Denmark, using its Netto, føtex and Bilka networks to maintain access to essential groceries during power cuts, communications failures and other national emergencies. The initiative embeds contingency capabilities across the store estate, helping protect Denmark’s food supply during major disruptions.
Insight Partner, Dan Butler’s view:
The programme signals that operational resilience is becoming a shopper-facing priority, rather than simply a supply-chain or IT responsibility. Other grocery retailers may need to assess whether selected stores can continue operating offline during cyberattacks, infrastructure failures and extreme weather events.
Axfood’s investments begin to deliver
Axfood’s Q3 performance demonstrated the growing strength of its retail portfolio. City Gross returned to profitability earlier than planned, while Hemköp achieved strong, market-leading growth following continued investment in its stores and proposition. At the same time, supply-chain automation supported margins and service levels, helping Axfood maintain profitable growth despite food price deflation.
Insight Analyst, Linda Haden’s view:
Axfood's Q3 performance suggests its strategy is reaping dividends. Strengthening the value proposition at discounter Willys through store enhancements and price leadership continues to resonate with cost-conscious shoppers, while investments in AI, automation and data are helping improve productivity, optimise operations and control costs. Enhanced loyalty personalisation should further strengthen customer engagement and support long-term growth. However, sustaining momentum will be critical as Axfood seeks to close the gap on market leader ICA. With both retailers pursuing similar priorities around value, efficiency and data-driven retailing, execution will be the key differentiator in the years ahead.
Edeka strengthens premium private label credentials
Edeka has launched a long-term partnership with Michelin-starred and TV chef Johann Lafer to support its private-label brand Herzstücke, with the first ‘Edeka Herzstücke Lafer Selection’ products arriving for the 2026 Christmas season. Lafer will be directly involved in tasting, recipe development, ingredient selection and quality assurance, as Edeka seeks to strengthen the appeal and prestige of its private label range while driving store traffic and differentiating itself from competitors.
Insight Partner, Dan Butler’s view:
Retailers are no longer treating private label solely as a value proposition but as a strategic tool for premiumisation and brand differentiation. As inflationary pressures ease, retailers are increasingly focusing on elevating mid-tier and premium private label ranges to offer shoppers higher perceived quality and exclusivity while maintaining stronger margins than many national brands. The move reflects a growing trend across European grocery retail where retailers are investing in quality cues, provenance, expert endorsements and distinctive product development to make private label a destination in its own right rather than simply a lower-cost alternative to branded products.
Kaufland turns beauty into a destination
Kaufland Romania has launched a dedicated Beauty Zone in its Bucharest flagship store, elevating beauty and personal care beyond a routine grocery purchase. The shop-in-shop concept features around 4,000 products, beauty services, AI-powered consultations and discovery-led merchandising, helping shoppers explore new trends and brands while increasing engagement with the category. The retailer has also introduced dedicated spaces for innovations, trending products and K-Beauty, positioning beauty as a destination in its own right.
Insight Analyst, Bently Briggs's view:
Kaufland's new Beauty Zone highlights how retailers can elevate private label by giving it greater visibility and a stronger brand identity. Rather than treating Bevola as a traditional private label, Kaufland has created a dedicated branded presence, supported by premium merchandising, interactive experiences and distinctive packaging. By allowing private label to shine alongside national brands, retailers can build trust, drive trade-up opportunities and strengthen differentiation within increasingly competitive health and beauty categories.