Amazon on top, but grocery giants dominate European retail rankings

Amazon has overtaken Schwarz Group to become Europe’s largest retailer by gross merchandise value (GMV), according to the latest European Top 50 ranking from Retail Cities. The report includes companies in the consumer goods, restaurant, specialty, fashion, and e-commerce sectors. However, the report underscores the continued dominance of grocery retailers, which occupy every position from second to twelfth place.

While Amazon’s rise reflects the growing influence of ecommerce and platform-based models, the rankings reveal that traditional food retail remains the backbone of European consumer spending. Schwarz Group, alongside other major grocers such as Aldi, Edeka and Tesco, continues to command significant scale, with the grocery sector benefiting from its essential role in household expenditure.

The 2026 report, based on Retail Cities’ business intelligence database, uses GMV to measure total ecosystem sales across physical stores, ecommerce and franchise operations. This methodology highlights the resilience of large supermarket groups, whose extensive store networks and increasing investment in digital capabilities have enabled them to maintain strong positions in the rankings.

European retail spending exceeded €4.5 trillion in 2025, growing by €162 billion, or 3.7%. The Top 50 retailers captured €103 billion of this increase—around 64% of total growth—raising their combined share of consumer spending to 41%.

Although ecommerce players recorded faster growth rates overall, no physical retail segment matched the scale and consistency of grocery. The concentration of grocers in the upper tier of the rankings illustrates the sector’s defensive strength, even amid subdued real-term growth and inflationary pressures.

According to the Retail Cities European Top 50 Report, the findings point to a dual dynamic in European retail: rapid innovation at the top, led by Amazon, alongside enduring market power among large grocery operators that continue to anchor the industry.

Grocery retailers expand in-store services that promote 'health'

Across Europe, grocery retailers are increasingly extending their role beyond food retail into health, wellbeing and lifestyle services. The move reflects both changing consumer expectations and mounting pressure on public healthcare systems, with prevention and everyday health management becoming more prominent.

In Belgium, Colruyt Group launched its Yoboo lifestyle pharmacies combining traditional pharmaceutical services with nutrition advice, diagnostics and curated healthy food ranges. The concept illustrates a broader ambition to build an integrated “food and health” ecosystem, linking retail, digital tools and personalised guidance.

Elsewhere, similar initiatives are emerging. In the Netherlands, Albert Heijn has expanded its in-store health proposition through partnerships with dieticians and digital personal training and coaching via its app, alongside a growing assortment of functional and health-focused products. The retailer positions itself as a facilitator of healthier living rather than solely a grocer.

In the UK, Tesco and Sainsbury's have both introduced health services ranging from pharmacy counters to opticians and, in some locations, GP-style clinics operated with third-party providers. Meanwhile, Boots, often co-located with grocery, continues to deepen its healthcare offer, piloting in-store weight-loss clinics in a dozen locations, highlighting the growing convergence between food, pharmacy and primary care.

France provides further examples. Carrefour has invested in in-store clinics and telemedicine solutions, enabling customers to consult healthcare professionals while shopping. The retailer has also emphasised preventive health through nutrition scoring and tailored product recommendations.

In Germany, dm-drogerie markt has expanded wellness services, including in-store consultations and a broad offer spanning nutrition, supplements and personal care, blurring the lines between drugstore and health hub.

These developments point to a structural shift: stores are evolving into local service centres where food, health advice and lifestyle support intersect. For retailers, this creates new revenue streams and deeper customer relationships. For consumers, it offers accessible, everyday touchpoints for managing health, often embedded within routine shopping journeys.

One scan, one score, big consequences: Why Yuka app matters to grocers

Launched in France in 2017, the Yuka app has evolved from a niche nutrition tool into a notable force shaping grocery retail and product formulation. Created by Julie Chapon and co-founders after concerns about hidden ingredients in everyday foods, the app allows shoppers to scan barcodes and receive a simple health score based on nutritional quality, additives and organic status. 

Yuka’s growth has been rapid. Today, it is available in around 12 countries, including key markets such as United Kingdom, Germany, Spain, Italy and France, as well as the United States, Canada and Australia. Its strongest penetration remains in Europe, where alignment with schemes such as Nutri-Score and heightened consumer scrutiny of ultra-processed foods have accelerated adoption.

For grocery businesses, the app’s influence is no longer theoretical. Yuka now counts tens of millions of users globally, and its scoring system is actively shaping purchasing decisions at shelf level. In France, manufacturers have already reformulated products to avoid poor ratings, particularly by reducing additives, sugar and salt. Domestic retailer Intermarché just announced that starting in spring, it will display Yuka ratings for all of its 6,000 private label products on its online ordering service. 

A notable recent development is its growing impact in the United States, now one of its fastest-growing markets, with tens of millions of users and rising influence on major brands. This transatlantic expansion is creating a feedback loop: European-style transparency expectations are increasingly affecting US product development, while multinational FMCG companies face consistent scrutiny across markets.

The broader trend is clear. Yuka and similar systems are effectively acting as informal regulators, simplifying complex nutritional science into a single score that can sway consumer choice instantly. For grocers and suppliers, this raises both risk and opportunity: poor scores can damage sales, while cleaner formulations and transparency can become a competitive advantage in an increasingly health-driven retail environment.

Carrefour plans to increase its worldwide footprint via franchises

Carrefour is pursuing an ambitious international growth strategy, aiming to expand its presence from 33 to 60 countries by 2030. Central to this plan is a master franchise model that allows the retailer to scale rapidly while keeping direct financial exposure low.

Under the leadership of Alexandre Bompard, Carrefour is shifting focus away from several European markets, including Italy, Romania, and Poland, while accelerating expansion across high-growth regions such as Africa, the Middle East, and India. The company will re-enter India in 2026 with a hypermarket in Noida, marking a strategic return after its 2014 exit.

Carrefour’s master franchise model relies on local retail operators to manage stores under the Carrefour brand. Partners gain access to store concepts, sourcing capabilities, and operational expertise, while Carrefour secures royalty-based income and strengthens its global footprint through local alliances.

The interest of franchisees lies in increasing sales and profit margins, which is facilitated by Carrefour’s private label products. Its own brand products currently account for a relatively small share of sales in emerging markets, approximately 5-6% in food and up to 10% including non food. However, these categories are expected to grow, particularly in non food segments such as textiles and home and household goods, where demand is strong.

Africa is a primary growth engine. Carrefour plans to operate in 22 African countries by 2030, up from 14 today, with rapid expansion in markets such as Morocco, Egypt, Ivory Coast, and Ethiopia. Recent partnerships in Guinea, Ghana, and Congo highlight the pace of rollout.

While the strategy offers scale and sourcing advantages, it is not without challenges. Success depends heavily on finding capable local partners and navigating geopolitical risks that can disrupt supply chains.

EU Commission issues guidance on 'Packaging' rules ahead of August rollout

The European Commission has released long `awaited guidance and a Q&A document on the Packaging and Packaging Waste Regulation (PPWR), offering additional clarity for businesses ahead of its entry into force on 12 August. While non-binding, the approximately 55-page documents are intended to support interpretation of the regulation, which aims to advance the circular economy and reduce packaging waste across the EU.

A key area of focus is the distinction between “producers” and “manufacturers,” a topic that has raised significant questions for private label manufacturers and retailers. The Commission’s guidance confirms that the definition of “manufacturer” is not based solely on who physically produces packaging. Instead, it depends on a company’s role in designing and specifying packaging, as well as whose brand or name appears on it.

For retailers with private label products, this interpretation has important implications. In many cases, retailers will be considered both producer and manufacturer under the PPWR. As a result, they will be subject to pay extended producer responsibility (EPR) contributions and issuing declarations of conformity.

Industry stakeholders have broadly welcomed the guidance as a step toward greater legal certainty, though some ambiguity remains. The clarification of roles across the value chain is seen as especially relevant for aligning responsibilities between brand owners, manufacturers, and retailers.

However, industry associations caution that the guidance does not resolve all operational and financial challenges posed by the PPWR. Companies newly classified as manufacturers from August 2026 onward are urged to fully comply with their obligations. For private label stakeholders, the message is clear: reassess roles, ensure compliance readiness, and prepare for increased accountability in packaging design and lifecycle management.

EU closing in on harmonised sorting labels for FMCG packaging

Brussels is progressing towards a unified system of sorting labels on consumer packaging across the European Union, with implications for manufacturers, retailers, designers and packaging producers. Under the Packaging and Packaging Waste Regulation (PPWR), the European Commission is obliged to adopt an implementing act establishing harmonised consumer sorting instructions by 12 August 2026. The aim is to simplify recycling and reduce fragmentation caused by divergent national systems.

In January 2026, the European Commission’s Joint Research Centre (JRC) published a detailed technical proposal outlining a harmonised waste sorting label system. This evidence‑based document proposes a common visual language designed to help consumers identify correct disposal streams and to align packaging labels with collection infrastructure.

The system combines pictograms, colours and text and sets out specifications for label dimensions, placement and accessibility. Under the proposal, each label would indicate one material category, meaning composite packaging might require multiple symbols. Alternatives such as QR codes are also discussed for packaging where physical labels are less feasible.

Industry reactions have been mixed. Some trade associations argue that extensive use of colour and language on labels could undermine harmonisation and reintroduce barriers to the internal market, contrary to PPWR objectives. They advocate simpler, pictogram‑centred systems to reduce compliance costs and cross‑border complexity.

For businesses planning packaging redesigns beyond 2026, early consideration of the forthcoming harmonised label is increasingly advised. With the visual system largely defined and a formal implementing act expected later this year, companies that defer preparation may find themselves at a disadvantage.

Chinese e-commerce challengers set sights on Europe

A new wave of Chinese e-commerce platforms is reshaping the competitive landscape for European retailers and manufacturers. Companies such as Temu, AliExpress, Shein, and JD.com’s European platform Joybuy are accelerating their push into the region, bringing new price dynamics, supply chain models and consumer expectations.

The first wave of entrants built their growth on ultra-low prices and direct shipping from Chinese factories to European consumers. By sending millions of small parcels directly to households, these platforms were able to cut out intermediaries in the retail supply chain and benefit from customs exemptions for low-value goods, helping them scale rapidly across Western markets.

However, the model is increasingly under regulatory scrutiny in Europe as authorities examine product safety, competition and the role of foreign subsidies. From 1 July 2026, parcels valued under €150 entering the EU will face a flat €3 customs duty. This measure is temporary (2026–2028) while the EU prepares a broader customs reform.

At the same time, Chinese platforms are adapting their strategies. While Temu and Shein continue to rely heavily on cross-border shipments, players like JD.com are pursuing a more localised approach. Its Joybuy platform, currently being piloted in several European markets including the UK, Germany and the Netherlands, aims to replicate JD’s domestic model with local warehousing, faster delivery and partnerships with established brands, including Dutch Superunie own brand G’woon, across categories such as groceries, beauty and household essentials.

This development also reflects changing dynamics in China’s own digital economy. As growth slows and the era of heavy platform subsidies fades, some Chinese e-commerce companies are seeking new international markets to sustain growth and improve profitability.

Finland’s private label proposal could have cross border impact

Recent policy deliberations in Finland are capturing attention across the European FMCG landscape, as Helsinki prepares to advance legislation that would limit supermarket private label products in a bid to protect smaller domestic food producers. Under a draft amendment to the Finnish Food Market Act, the government is considering capping the share of own brand products on shelves and restricting their unlimited expansion — aiming to secure more shelf space and stronger negotiating power for independent manufacturers. The draft is expected to be introduced to Parliament imminently, with possible implementation in 2026–27 after consultation and parliamentary review.

Market structure is central to the policy rationale. Finland’s grocery sector is highly concentrated: the domestic S Group and Kesko’s K Group together command over 80% of the national grocery retail market, making the sector effectively an oligopoly. S Group alone holds nearly half of all grocery sales, with K Group accounting for around one‑third. The German discount retailer Lidl trails with under 10 % of the market. This concentration amplifies the negotiating power of major retailers vis‑à‑vis food suppliers, a point highlighted by farmers and SME producers advocating for regulatory intervention.

Proponents of the Finnish proposal argue that curbing private label dominance could rebalance buying relationships and strengthen competition. However, critics like consumer associations and retail advocates warn such restrictions could have unintended consequences. Private label offerings are a key source of value for price‑sensitive consumers in an environment where food prices have risen sharply, and reducing their availability could further drive up the checkout receipt. These concerns are resonating in public debate, especially as Finland heads toward general elections, raising uncertainty about the proposal’s prospects.

Across the Gulf of Finland, Estonian industry voices are watching closely. While Estonia currently has no formal policy to restrict private label growth, the Estonian Food Industry Association has voiced concern over the expanding share of own brand goods, especially in certain categories, and the competitive pressures this creates for domestic producers. They caution that if Finland’s protectionist approach gains traction as a European trend, it could influence policy thinking in Estonia and other markets.

These developments underscore a broader tension between cost‑efficient own brand strategies and evolving policy debates around market concentration, fair trading practices and agricultural resilience. How regulators balance these interests, and how retailers respond, will be an important industry story to follow in the months ahead.

Can loyalty card data assist in early cancer detection?

Retail loyalty programmes may soon play an unexpected role in healthcare. Researchers in the UK are exploring whether everyday shopping data from major retailers could help identify early warning signs of cancer.

A new study led by Imperial College London is analysing purchase histories from participants who use the Tesco Clubcard and Boots Advantage Card programmes. By comparing the over-the-counter medication purchases of people later diagnosed with cancer against those of a healthy control group, researchers hope to uncover subtle shifts in buying behaviour that may precede diagnosis.

The research builds on earlier findings supported by Cancer Research UK, which identified differences in purchasing patterns for pain relief and indigestion remedies among women who were later diagnosed with ovarian cancer—sometimes as early as eight months before clinical detection.

The new phase expands the scope to ten cancer types, including colorectal, pancreatic, liver and ovarian cancers. Many of these conditions initially present with mild or non-specific symptoms such as bloating, fatigue or indigestion. As a result, individuals often turn to self-care products before seeking professional medical advice, creating a potential behavioural signal within retail data.

If the research proves successful, scientists hope to develop a system that monitors consenting shoppers’ purchasing patterns and flags potential health triggers, encouraging earlier medical consultation.

The initiative demonstrates how partnerships between retailers, healthcare researchers and charities could unlock new public health insights from everyday consumer behaviour, while raising important questions around privacy, ethics and data governance in the evolving data economy.

New purchasing alliance in Portugal

Connexio is a newly announced purchasing alliance formed by Auchan Retail Portugal and Grupo Mosqueteiros (the owner of the Intermarché banner in Portugal) to strengthen supplier negotiations and improve competitive positioning in the Portuguese grocery market. The initiative was revealed in early March 2026 as a central services platform focused on streamlining and jointly negotiating general terms with key suppliers.

Connexio’s core mandate is to generate scale and operational efficiencies by reducing transactional complexity and enhancing supplier engagement. While it will handle overarching negotiation frameworks, each partner retains full autonomy over pricing, assortment decisions, promotional strategies and individual ordering.

The alliance reflects broader market pressures in European food retail, where scale and supply chain optimisation increasingly influence competitiveness.