Sustainability is rising to the top of the retail agenda in Europe, driven by upcoming legislation and shifting shopper expectations. From cutting food waste to rethinking energy, packaging, and sourcing, retailers are investing in solutions and initiatives that meet targets and regulatory demands while strengthening shopper trust.

We highlight ‘visible sustainability’ as one of the five trends we expect to shape the European grocery retail market over the next five years and beyond. Here’s a closer look at some recent developments and initiatives in this space.

Cutting food waste through AI and shopper engagement

Food waste is a key area of investment in the region with retailers focusing on reducing food waste in the supply chain and in-store and helping shoppers reduce their own waste.

Albert Heijn has launched a ‘Last Chance Bargains’ initiative, where shoppers can use the retailer’s app to discover discounted products that are nearing their sell-by date at their local store in real time. The closer products get to reaching their expiry, the higher the discount, up to a maximum of 70%. By implementing this AI-powered tool, the retailer expects to sell 25% more discounted products.

In Spain, Alcampo trains employees on improving the process of handling and preserving fresh produce and has rolled out an AI-powered tool that identifies products close to expiry and suggests actions, such as price reductions or donations. This is implemented in all its stores, saving more than 4.4m products in the first half of the year. Alcampo also holds flash sales on its website, offering 30% discounts on close to expiry products in an automated and personalised way based on shopper purchasing habits. These initiatives, among others, mean that more than 100 of its stores have food waste rates below 1%. Three of its supermarkets in Madrid have food waste levels close to 0%.

Targeting emissions reduction

Reducing carbon emissions is a common goal for retailers and suppliers across Europe. Retailers continue to focus on store-based energy efficiency solutions, onsite power generation, and sourcing renewable energy. We’re also seeing retailers electrify their delivery fleets and trial new last-mile delivery solutions.

Coop Schweiz has opened a new railway logistics hub in Zurich to supply over 70 stores by freight train. The shift from road to rail aims to cut CO2 emissions by 80% and eliminate 58,000 truck journeys annually. Last-mile deliveries will still rely on trucks, but the retailer aims to introduce more environmentally friendly vehicles for this stage. Through this railway system, Coop Schweiz also plans to manage waste and container disposal. With two-thirds of national transport already rail-based, Coop claims to have saved 18 million kilometres of road transport in 2024.

Nine French retailers, including Lidl, Carrefour, and Auchan, have launched LESS (Low Emission Sustainable Sourcing), a shared platform to measure and reduce CO2 emissions across supply chains. Hosted by OpenClimat and approved by the French Competition Authority, LESS enables suppliers to report their carbon data in a standardised way, fostering transparency and collaboration. Participation is voluntary, with all farmers, manufacturers and suppliers across the chain able to join to begin dialogue with retailers. With Scope 3 emissions (linked to a product’s life before it reaches the store) representing over 96% of retail’s footprint, this initiative will help retailers refine strategies in line with Paris Agreement goals.

Packaging innovation

Packaging is another area of focus for retailers and suppliers across the region. They are increasingly collaborating to involve more stakeholders and experts in driving packaging innovation and adopting sustainable production methods.

Waitrose has become the first major UK supermarket to roll out invisible recycling tags on the plastic packaging of its own-brand fresh milk across the country. Developed by the firm Polytag, these tags, visible only under UV light, allow the retailer to track its packaging through the recycling stream to see exactly how much is being successfully processed. This initiative is designed to provide Waitrose with crucial, real-time data to help inform future packaging decisions and ultimately improve UK recycling rates.to meet evolving sustainability expectations.

Responsible and local sourcing in the supply chain

Retailers are reviewing all elements of the supply chain to ensure sustainable practices are embedded throughout. Additionally, local sourcing plays a key role in retailers’ sustainability strategies.

In the UK, Broccoli from Tesco’s low carbon concept farm in Lincolnshire hit the shelves in September. The farm, developed in partnership with some of Tesco’s long-standing vegetable suppliers, is exploring innovations such as low carbon fertilisers, alternative fuels, state-of-the-art cold storage, and carbon removal techniques.

Where is the sustainability trend most visible across Europe?

Sustainability is visible and presented differently across Europe. Western Europe and the Nordics are leading in sustainability, with a major focus on product and packaging innovation to combat food waste and reduce carbon footprints. Meanwhile, in Eastern Europe, the focus is on deposit return scheme (DRS) implementation and selling discounted fruit and vegetables to reduce food waste. Retailers are also offering reusable bags in bakery and produce departments to encourage shoppers to switch from using disposable plastic bags.

Looking for more insight on European retail trends?

Subscribers can explore our European retail trends 2026.