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:

• Billa axes e-commerce in Austria and Czechia

• Arla Foods expands ingredient capacity with major investment

• Auchan to franchise its supermarkets under Netto and Intermarché banners

• Retailers in Poland reach store milestones

Billa axes ecommerce in Austria and Czechia

In a surprising move, the supermarket banner of the REWE group has announced it will be closing its in-house online grocery delivery operation. It will continue to offer delivery via third party operators and focus its internal efforts on its brick-and-mortar estate. Strong competition from pureplay Rohlik in both markets is placing more pressure on physical retailers.

Michela Pearson, Senior Insight Analyst’s view:  ecommerce profitability is a hot topic in the industry, and few retailers have managed to turn a profit in this area. Relying on existing third-party infrastructure will allow the REWE Group to reduce costs and focus on its physical store, while continuing to provide shoppers with a quick commerce offering.

Arla Foods expands ingredient capacity with major investment

Arla Foods is investing DKK 300 million (approximately £35.2 million) to retrofit a spray-drying tower at its Arinco facility in Videbæk, Denmark, shifting away from Early Life Nutrition. The move follows Arla’s decision to focus the site exclusively on ingredient manufacturing to meet rising demand for specialised dairy components. The project includes a new heat recovery system that will cut gas usage by nearly 5%, reducing CO2 emissions by almost 900 tonnes per year. Reconstruction will begin in July 2026, with test production expected in January 2027.

Supply Chain Analyst, Soline Duriez’s view: Arla’s investment highlights a strategic shift towards more specialised ingredients and marks another step in its sustainability journey. Building on the deployment of high-temperature electric heat pumps in its Svenstrup site earlier this year, this initiative further strengthens the company’s decarbonisation efforts.

Gain more sustainability inspirations from our quarterly reports.

Auchan to franchise its supermarkets under Netto and Intermarché banners

The French retailer will be moving all supermarkets in mainland France to Netto and Intermarché at the end of next year, subject to approval from competition authorities. This will allow shoppers access to the great value proposition and focus on fresh and local suppliers offered by the Les Mousquetaires banners.

Michela Pearson, Senior Insight Analyst’s view: there is a trend of ongoing consolidation taking place in Europe, with more and more banners changing hands and being merged. The move is said to bring more purchasing power to French shoppers thought a better proximity offering, and is part of Auchan’s wider strategy to turn around its performance following a few disappointing years.

For more details on development, read the France Country Presentation.

Retailers in Poland reach store milestones

Supermarket chain Dino has opened its 3,000^th store in the market, its 312^th addition in 2025, as it continues to expand at pace. Discounter Aldi Nord has also achieved a milestone, reaching 400 stores in its long-term plans to operate 1,300 stores by 2038.

Senior Insight Analyst, Dan Butler’s view: the Polish market continues to see accelerated competition and consolidation, with many of the top retailers still perusing ambitious store network expansion plans. This will lead to increased price pressures and make it harder for smaller and regional-based retailers to compete.

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