International Supermarket News

Verona, 12 June 2025

ALDI, part of the ALDI SÜD Group and a leading global player in the organised retail sector, enters a new strategic phase in Italy—seven years after launching its first store and approaching the 200-store milestone. With a firm commitment to offering the best quality at the lowest possible price through a streamlined yet complete product range, ALDI now sets an even more ambitious goal: not only to effectively combat the rising cost of living, but also to provide meaningful support to customers, communities, and local economies while building strong, long-term relationships with quality suppliers.

Since entering the Italian market in 2018, ALDI has strived to bring customers the best of Made in Italy at unbeatable value. This approach is deeply rooted in the continuous development of its workforce, support for local communities, and a growing focus on sustainability—all of which have shaped ALDI’s development strategy in the country. Over the years, the retail landscape has evolved significantly, with shifting consumption patterns and increasingly diverse market demands. Within this context, the discount retail model has shown the highest growth rates, and ALDI has established itself as a successful player.

The company has embraced a dynamic, customer-centric market approach, offering high-quality products at affordable prices while staying closely connected to people, resources, and local communities. ALDI aims to play a proactive role in supporting society—revitalising smaller communities and contributing to regional development.

This strategy is encapsulated in ALDI’s guiding principle: “Spend less, live better.” It reflects a business model tailored specifically for Italy, designed to provide a high-value shopping basket focused on quality and affordability. A standout feature of ALDI’s offer is its celebration of Italian excellence: approximately 80% of its food products come from partnerships with Italian suppliers, known as the “Custodians of Taste”, who are dedicated to enhancing the country’s gastronomic heritage and preserving its regional identity.

“In a time when Italy is facing significant economic and social challenges, ALDI reaffirms its commitment to being close to people—not only through expanding store proximity but also by making a meaningful social impact,” says Michael Gscheidlinger, Country Managing Director of ALDI Italy. “After seven years in Italy, we are ready to enter a new strategic chapter focused on consolidation. These years have allowed us to lay strong foundations and create the right conditions for long-term success. The response from customers and the market has been extremely positive. Now we look to the future with greater awareness, responsibility, and clarity, aligning more closely with our global strategy.”

ALDI’s stores are positioned as key players in revitalising both urban centres and smaller towns. The company has led major urban regeneration efforts in many locations, transforming neglected or underused areas into vibrant, sustainable spaces for the community. ALDI works closely with local authorities, adapting its store models to meet the unique needs of each region.

The retailer’s success in Italy is supported by a store concept specifically designed for the Italian market, ensuring a welcoming and rewarding shopping experience. This includes attention to design detail and increasingly effective in-store communication strategies, allowing customers to engage more meaningfully with the brand.

Sustainability remains a central pillar of ALDI’s operations. Aligned with the ALDI SÜD Group’s mission to make sustainability accessible to all, ALDI Italy not only offers quality products at consistently low prices but also commits to sustainable supply chains and environmentally conscious stores. Through a robust framework of Corporate Responsibility guidelines—regularly updated to reflect best practices—ALDI encourages responsible conduct towards both consumers and the environment. The company works closely with suppliers to continuously improve its supply chain and increase the share of sustainably sourced materials, thereby reducing the environmental and social impact of its products.

ALDI’s dedication to the Italian market also extends to employee development. With nearly 200 stores across six northern regions (Lombardy, Veneto, Emilia-Romagna, Piedmont, Friuli-Venezia Giulia, and Trentino-Alto Adige), the company employs over 3,800 staff. Notably, the average age of its management team is under 36, and more than 50% of managerial positions are held by women. ALDI is deeply committed to Diversity & Inclusion, with a workforce representing 64 different nationalities (excluding Italy).

In 2024 and 2025, ALDI’s efforts were recognised with several awards, including “Italy’s Best Employers 2024” by Corriere della Sera in partnership with Statista. The company also ranked in the top 10 at the Talent Communication Summit by Potential Park, standing out for its transparency and effectiveness in communicating via its Careers site and LinkedIn, and for providing a high-quality user experience throughout the online application process.

In the past year, ALDI also revamped its communications strategy to better showcase its offering and deepen its connection with local communities. Across all customer touchpoints, ALDI speaks directly to Italian consumers, highlighting values such as freshness, local sourcing, and affordability—core elements of its “Spend less, live better” philosophy.

Looking ahead, ALDI remains focused on actively listening to local communities, engaging with them through a variety of channels, and continuing to meet the diverse needs of today’s consumers and the challenges of modern living.

Southern California’s grocery industry is standing on a knife’s edge, as nearly 45,000 workers across Ralphs, Vons, Pavilions, and Albertsons have voted to authorise what could become one of the most significant supermarket strikes in recent memory. The tension, sparked by allegations of unfair labour practices and a deepening frustration over stalled contract negotiations, emerges amid mounting legal uncertainty surrounding the planned Kroger–Albertsons merger.

While no strike date has been officially declared, the decision by the union—UFCW Local 324—to mobilise its members sends a powerful signal: workers are prepared to halt operations if their concerns continue to be disregarded. Union leadership accuses both retailers of engaging in union-busting tactics, including surveillance, intimidation, and retaliation, actions they claim violate federal labour law. The companies, for their part, deny wrongdoing and point to ongoing investments in wages, healthcare, and pension schemes.

But beneath the surface lies a more complex legal battle. The Federal Trade Commission (FTC) has expressed strong opposition to the proposed merger, citing fears of reduced competition and harm to consumers. Yet, the companies remain determined to press ahead. This limbo has created uncertainty on all sides, with workers caught between corporate ambitions and regulatory scrutiny. It’s a legal grey zone where labour rights, antitrust law, and market dominance intersect—and tensions are beginning to boil over.

For four months, the union and company negotiators have been at the table, but workers say little progress has been made. UFCW leadership argues that their proposed solutions to staff shortages—issues that directly affect customer service and employee morale—have been met with indifference. The companies, they allege, have dismissed genuine concerns as merely “anecdotal.”

The result is a workforce that feels undervalued and disrespected. In a statement, the union voiced its exasperation: “We’re tired of asking these corporations to invest in their workers and customers, only to see no results. We’re tired of asking the companies to respect our labour rights and seeing our co-workers intimidated.”

Kroger, which owns Ralphs, maintains that its current offer provides “market-leading wage increases” and “industry-leading benefits,” arguing that it compares favourably with non-union competitors. But this reassurance hasn’t calmed unrest on the ground, especially as the broader merger conversation casts a long shadow over future labour dynamics.

The strike authorisation is not merely a reaction to pay and conditions—it is a response to a perceived erosion of labour rights during a pivotal moment for the grocery sector. With the FTC yet to issue a final ruling on the merger and negotiations set to resume on June 25, all eyes are on whether legal clarity will emerge—or if uncertainty will continue to exacerbate the growing divide between management and the shop floor.

For now, the threat of mass industrial action remains real, with the potential to disrupt supply chains, shutter stores, and reshape the national conversation around corporate consolidation and worker protections in retail.

Two of the UK’s largest supermarket chains, Sainsbury’s and Morrisons, have come under scrutiny from the government for allegedly promoting heated tobacco products in a manner that may breach advertising laws. The Department of Health and Social Care has formally written to both retailers, warning them to stop “advertising and promoting” these products, which officials claim is unlawful.

The controversy stems from a BBC investigation earlier this year, which uncovered promotional displays in-store — including posters and video screens — showcasing heated tobacco devices. These products, which use an electric current to heat tobacco and release nicotine-containing vapour, have become increasingly visible in retail spaces, marketed as alternatives to traditional smoking.

Both supermarkets initially defended the practice, insisting their in-store advertising was within legal bounds. However, the government has taken a different view, prompting the latest correspondence urging them to reconsider their approach.

In response, Sainsbury’s said it is in “close contact with the government” over the matter, suggesting it is actively reviewing its position. Morrisons confirmed it had received the letter and would reply “in due course.”

Legal Ambiguity

The legal status of heated tobacco advertising remains murky. Under the Tobacco Advertising and Promotion Act 2002, advertising tobacco products is largely prohibited in the UK. This includes bans across television, print, and in-store promotional displays. However, the law was drafted prior to the advent of heated tobacco technologies, and as such, these newer products exist in a legislative grey zone.

Unlike e-cigarettes, which are covered under separate regulations, heated tobacco products straddle the line between traditional tobacco and electronic delivery systems. This has left room for interpretation by retailers and regulators alike.

Anti-smoking campaigners argue that any public promotion of products containing tobacco undermines public health efforts and could risk normalising nicotine use, especially among younger demographics. Meanwhile, manufacturers and retailers argue that these alternatives offer harm reduction potential and should be allowed to be marketed responsibly.

Call for Clarity

This latest episode underscores the urgent need for clearer government guidance on how retailers should handle newer nicotine technologies. With the tobacco landscape evolving rapidly, many experts believe the UK regulatory framework must be updated to reflect current realities.

Until then, retailers are likely to continue treading carefully — balancing commercial interests with legal obligations and growing public health pressure.

In a retail landscape reshaped by shifting consumer priorities and economic headwinds, private label products are no longer the underdogs of the supermarket aisle. As part of the Anuga 2025 Trend Research, one trend is dominating boardroom conversations and buyer strategies alike: the powerful and continuing rise of retailer-owned brands.

From basic commodity goods to premium, organic, and niche market offerings, private label is redefining its role — not just as a cost-saving alternative, but as a symbol of trust, quality, and innovation.

🛒 The Evolution of Private Label

Once seen as the economical choice for budget-conscious consumers, private labels have undergone a transformation. Today’s consumers associate them with high standards, ethical sourcing, and increasingly, product innovation. Supermarkets and discounters alike are rapidly investing in their own brands, recognising the strategic value in controlling the narrative — and the margins.

According to Anuga’s latest market insights, retailers are actively expanding their private label portfolios to address four key drivers:

Value-for-money in an inflationary era
Increased consumer trust in retailers as quality guardians
Fast, flexible product development pipelines
Alignment with sustainability and clean label initiatives

🔍 Consumer Loyalty Meets Product Agility

What distinguishes today’s private label strategy is its agility. Retailers can rapidly test, launch, and adjust products based on real-time market feedback — a feat traditional brands often struggle to match. From plant-based innovations to sugar-reduced beverages and ethnic cuisine ranges, private label is often first to shelf with on-trend options.

At the same time, shoppers are rewarding these efforts with loyalty that transcends price. In a world where transparency and ethical sourcing matter more than ever, the ability to communicate values directly through owned brands is giving retailers a powerful edge.

🌍 Spotlight on Anuga 2025: The Global Private Label Showcase

This shift will take centre stage at Anuga 2025, the world’s leading food and beverage trade show, returning to Cologne from 4–8 October. With a dedicated focus on Private Label & Retail Solutions, the event will explore how the industry is embracing this evolution — from packaging innovations and supply chain strategies to sustainable sourcing and AI-driven category management.

Attendees can expect to meet global manufacturers, private label specialists, and retail leaders all aiming to capture new value in the competitive food landscape.

Private label is no longer just about affordability. It’s about identity, flexibility, and future-proofing retail. With value, trust, and innovation leading the charge, Anuga 2025 is poised to be the definitive stage where the next chapter of private label begins.

Amazon has unveiled three new artificial intelligence technologies aimed at enhancing its operations and improving services for customers, employees, and delivery partners. These innovations include a generative AI system called Wellspring, a time-sensitive AI forecasting model for supply chain optimisation, and agentic AI capabilities for robotics.

Wellspring is designed to improve the accuracy of package deliveries by using data from satellite imagery, road networks, building layouts, past delivery records, and even customer instructions. This system is particularly useful in navigating complex delivery areas such as apartment complexes and newly developed neighbourhoods not yet represented on conventional maps. By refining delivery precision, Wellspring contributes to faster and more reliable shipping experiences for Amazon customers.

The second AI innovation is a demand forecasting model that integrates time-sensitive variables such as weather patterns and holiday trends to more accurately predict customer preferences and product demand. This helps Amazon ensure that items are strategically positioned within its supply chain, thereby reducing delivery times and increasing product availability.

The third development comes from Amazon Robotics, where a new agentic AI team is working on robots capable of understanding and acting on natural language instructions. By leveraging vision-language models and robotic action policies, this AI enables robots like Amazon’s Proteus to operate more autonomously in complex environments. These robots can now handle heavier items and operate more efficiently in constrained spaces, allowing human staff to concentrate on higher-level tasks that require creativity and problem-solving.

These advancements reflect Amazon’s broader strategy of integrating AI deeply into its operations to deliver better value across the board. Wall Street analysts have responded positively to the company’s innovation push, maintaining a strong buy consensus on Amazon stock. Based on 46 buy ratings and one hold in the past three months, the stock carries an average price target of $241.64 per share, representing a potential upside of 13.3 percent.

Whole Foods Market, one of the largest grocery chains in the United States, is facing food shortage concerns following a significant cyberattack on its primary distributor, United Natural Foods Inc. (UNFI). The tech outage, which impacted UNFI’s internal systems, has disrupted the ability to select and ship products, creating ripple effects across the grocery chain’s more than 500 locations nationwide.

The cyber incident has triggered widespread delays in restocking shelves, with many stores across the country already reporting empty aisles. From San Diego, California to cities across Pennsylvania and Florida, customers have shared images online showing widespread product shortages. UNFI is responsible for distributing a vast range of goods to Whole Foods locations, and the disruption has affected both delivery schedules and overall product availability.

The situation underscores the vulnerability of retail food supply chains to cybersecurity threats, especially as major grocers increasingly depend on real-time logistics and digital infrastructure to manage inventory and distribution. With Whole Foods being owned by Amazon, expectations for operational efficiency are high, and any prolonged disruption could impact consumer confidence and sales.

As of now, Whole Foods is working to stabilise supply routes and replenish inventory but has warned that customers may continue to experience inconsistent product availability over the coming days. The incident highlights the growing importance of cyber resilience in the food retail sector, where supply chain continuity is critical to maintaining shelf stock and customer trust.

United Natural Foods Inc. is one of the largest wholesale distributors of natural and organic foods in North America. Its clients include major chains such as Whole Foods Market, making any operational issue within UNFI a major risk for grocery retailers reliant on timely deliveries and just-in-time inventory systems. As investigations into the unauthorised access continue, food security and digital infrastructure robustness remain top concerns for the grocery industry in the wake of this high-profile cyberattack.

Tesco has started the 2025/26 financial year with firm momentum, reporting a 4.6% rise in like-for-like sales. This performance reflects growing customer confidence, a sharper focus on value and quality, and continued investment in both physical and digital channels. As a result, the retailer has further expanded its lead in the UK grocery market, with its share rising to approximately 28%—the highest it has been in nearly a decade.

Delivering Value and Innovation

The latest growth comes as Tesco intensifies its effort to offer a balance between affordability and quality. This includes maintaining everyday low prices on essential products, matching competitors on key items, and expanding its premium ranges. The “Finest” line in particular has seen double-digit growth, with hundreds of new or reformulated products introduced in the past year alone. This strategy is paying off, as customers continue to respond positively to the balance of innovation, flavour, and price.

Beyond pricing, Tesco has continued to improve in-store availability and enhance the shopping experience. Feedback from consumers indicates improvements in overall satisfaction, value perception, and brand reputation—factors that are directly contributing to rising footfall and basket sizes.

Online Sales Gaining Traction

Tesco’s digital operations are also gaining pace, with strong online growth recorded in the first months of the financial year. Particularly in Ireland, where store refurbishments and expanded service offerings are being matched by rising digital penetration. Rapid delivery services such as Whoosh continue to extend their reach, now covering over 1,500 locations across the UK. Tesco’s online platform is also expanding its third-party marketplace, offering customers more choice while leveraging the retailer’s logistical scale.

Ireland and Central Europe: Consistent Growth

In Ireland, Tesco continues to strengthen its presence through new store openings, modernised layouts, and a growing online customer base. Market share has edged higher, supported by fresh food initiatives and improved convenience formats.

Elsewhere in Central Europe, performance has remained stable with growth in key categories such as bakery, chilled, and produce. Enhanced in-store execution and a refreshed private label offer have helped Tesco maintain competitiveness in the face of local and discounter challenges.

Operational Strength and Colleague Investment

Internally, Tesco is also reaping the benefits of operational discipline. Efficiencies across the business have released significant cost savings, which are being reinvested into colleague pay, store standards, and digital innovation. The company recently announced another uplift in hourly wages for UK-based staff, reinforcing its position as a leading employer in the sector.

Team satisfaction levels remain high, with Tesco reporting an improvement in colleague engagement and customer service delivery. This internal alignment is proving to be a key advantage in a market that remains under pressure from inflation, labour shortages, and shifting consumer expectations.

Looking Ahead

With a clear strategy in place and customer loyalty remaining strong, Tesco is well-positioned for the remainder of the financial year. While external cost pressures—such as increased labour costs, packaging levies, and energy prices—continue to shape the trading environment, Tesco’s scale, agility, and data-driven approach give it an edge in navigating the challenges ahead.

The company has reaffirmed its full-year outlook, expecting steady profit margins and healthy cash flow, allowing for further investment in growth areas, including digital, own-brand innovation, and store network development.

Tesco’s strong start to the year reinforces its standing as the UK’s leading grocer—not simply by size, but by its ability to evolve with the customer and outmanoeuvre competitors. As 2025 progresses, Tesco appears determined not just to hold ground, but to set the pace for the industry.

Amazon is making big moves in the grocery business in 2025. The company recently announced a major reorganisation to combine its grocery operations, including Whole Foods and Amazon Fresh, under one leadership to create a seamless shopping experience for customers. This new strategy aims to improve efficiency, product selection, pricing, and delivery options, helping Amazon compete more strongly with traditional retailers. Amazon Fresh stores are expanding rapidly across the United States, offering both in-store shopping and online delivery to meet customer demands. By integrating Whole Foods’ natural and organic products with Amazon’s advanced technology and logistics, Amazon is creating a powerful grocery platform. The company is also focusing on faster delivery by modifying fulfillment centres to include popular grocery items. With these innovations and a customer-first approach, Amazon is set to reshape the grocery market and challenge leaders like Walmart, Costco, and Target. As Amazon continues to grow its grocery business, shoppers can expect more convenience, better prices, and a wider selection of products both online and in stores. This bold strategy positions Amazon as a top competitor in the evolving grocery industry.

Costco Leads the Charge in Adapting to Rising Food Prices

As food prices continue their steady climb, Costco is emerging as a frontrunner in responding effectively to the changing needs of consumers and shoppers worldwide. With inflation pushing grocery costs higher, customers are increasingly seeking value without sacrificing quality—a demand that Costco’s Kirkland brand has successfully met. Kirkland has grown to become one of the largest consumer goods labels in the United States, outpacing even giants like Coca-Cola and Nike in revenue. Its success lies in offering trusted products at competitive prices, helping shoppers manage their budgets amid economic pressure.

Other major retailers are following suit. Target, known for its strong portfolio of owned brands such as Good & Gather, recently announced plans to introduce around 600 new products to this line, focusing on affordable options that maintain quality. This move is part of Target’s broader strategy to expand its owned brands, aiming to add 2,000 new items soon, with 90% priced under $20. Similarly, Walmart is enhancing its Bettergoods private label, promising customers improved quality and value.

However, while these retailers make strides to meet consumer demand, Aldi remains a noteworthy player in the value retail space. Renowned for its cost-efficient model and low prices, Aldi is an appealing alternative for shoppers. The limitation, however, lies in its relatively smaller store footprint. An expanded presence could position Aldi as a stronger competitor, particularly for price-sensitive consumers grappling with inflationary pressures.

Costco’s proactive approach underscores the importance of understanding evolving shopper behaviours and adapting product offerings accordingly. In a market where rising prices continue to challenge consumers, retailers that prioritise value, quality, and accessibility are set to gain a competitive edge.

Walmart’s top boss, Doug McMillon, has issued a stark warning: many Americans are struggling to make ends meet as food prices keep rising.

Speaking recently at the Economic Club of Chicago, McMillon said that more and more shoppers are cutting back by buying smaller items and switching to cheaper alternatives, especially near the end of the month.

“You can see the stress on people’s faces,” McMillon said. “The money runs out before the month is over.”

Walmart, the biggest grocery retailer in the U.S., has been trying to keep prices down. In 2024, the company pledged to roll back some food prices to pre-inflation levels. But with costs still rising, especially for basics like eggs, meat, and drinks, many shoppers feel like they’re falling behind.

Prices That Keep Climbing

According to recent government data, the cost of groceries has climbed steadily:

Meat, poultry, fish, and eggs jumped 6.1% in the past year.
Egg prices alone rose over 50%.
Dairy, cereals, and beverages also saw noticeable increases.

Even a modest rise in prices can hit lower-income families hard. “If you’re living paycheck to paycheck, every dollar counts,” McMillon said. “People are simply exhausted.”

Why This Matters

Shoppers are increasingly turning to discount chains like Walmart to stretch their budgets. But even with Walmart’s efforts, many are still cutting back.

The message from McMillon is clear: high food costs are more than just numbers on a receipt—they’re causing real pressure for families across the country.

As inflation continues to bite, Walmart and other retailers face a tough challenge: how to support customers without hurting their own bottom lines.