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:

• Lidl reports strong FY 2025 results.

• SPAR enters the Icelandic market.

• Lidl launches AI powered World Cup campaign.

• REWE introduces loyalty ice cream.

Lidl drives sales for the Schwarz Group

Schwarz Group delivered strong growth in FY2025, with total revenue rising 5.8% to €185.6 billon, reinforcing its market leadership despite a challenging economic backdrop. Retail remained the core growth engine, with Lidl revenue up 6.1% to €140.2 billion and Kaufland up 4.3% to €36.7 billon, supported by store expansion, customer growth and continued gains in core European markets. Growth was further supported by strong momentum in production (+23.9%), digital services (+15.8%), and circular economy activities, while online sales remained stable at €1.7 billon.

Insight Partner, Dan Butler’s view:

Lidl and Kaufland will continue expanding their physical store networks and investing in supply chain resilience to drive further market share gains. With increased group investment exceeding €10 billon, both banners are also likely to strengthen their competitive positioning through ecosystem integration, digital capabilities and continued focus on European market leadership.

SPAR enters Iceland with two stores under Drangar deal

SPAR has entered the Icelandic market following a licensing agreement between SPAR International and Drangar hf signed in early 2026, with the first two stores opening in the last two weeks. SPAR Hafnarfjörður spans over 300m² and offers more than 3,600 SKUs, with a strong focus on fresh produce, bakery, coffee and food-to-go. SPAR Barónsstígur in Reykjavik covers around 440m² and stocks over 4,000 products, targeting a mix of local shoppers, commuters and tourists with a similar convenience-led offer. Operated by Samkaup, Drangar hf’s grocery retail arm, the partnership blends SPAR’s global knowledge and capabilities with Drangar hf's local market expertise. The rollout will accelerate via the conversion of existing banners, including Krambúð and Kjörbúð, supporting broader ambitions to modernise Iceland’s convenience sector and to capture the burgeoning growth in inbound tourism.

Insight Analyst, Linda Haden's view:

Overall, SPAR’s approach highlights a shift towards internationally integrated yet locally executed retail models that can be deployed quickly across fragmented or underserved markets. Its entry into Iceland demonstrates how partnerships and store conversions can unlock rapid growth in smaller, high-value markets while minimising capital outlay. At the same time, it also signals increasing consolidation of buying power under global networks, raising pressure on pricing and brand differentiation for in-country retailers.

Lidl Germany launches AI-powered World Cup campaign

Lidl Germany is using AI-generated presenters to connect World Cup match highlights with timely product ideas. Around key games, different visual characters will respond to football moments and recommend relevant food, drinks and snacks. For example, Wily Würstchen offers ideas for audiences’ next barbecue. The campaign helps Lidl create fast, event-led content while turning football excitement into practical shopping inspiration for fans watching with family and friends.

Insight Analyst, Ziwei Huang ‘s view:

Lidl’s AI campaign with digital characters shows how retailers can turn live moments into immediate shopping triggers. By linking football excitement with relevant food and seasonal products, Lidl moves beyond generic promotions and creates more responsive, occasional marketing that feels timely, entertaining and closer to consumers’ real-life needs.

REWE introduces loyalty ice cream

The German retailer REWE has introduced a new ice cream under its private label range Beste Wahl. The “Cool Bo” ice cream, named after the new in-house loyalty scheme’s mascot, costs €1 and allows shoppers to collect €0.50 for their loyalty account.

Senior Insight Analyst, Michela Pearson’s view:

There’s a lot to like about this initiative. It’s seasonally relevant, launched just in time for summer, and showcases how retailers can leverage private label products that tie into their loyalty schemes. The added bonus of a permanent offer on additional points is another incentive for shoppers to sign up to the scheme.

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