Europe Convenience takes centre stage

The market is evolving towards smaller formats, while traditional hypermarkets are losing market share to convenience stores and discounters. Hypermarkets' share of the European grocery market fell from 12 pct in 2019 to 10 pct in 2024, and forecasts indicate a further decline to 9 pct by 2029. The average grocery store size in Europe decreased by 2.6 pct between 2020 and 2024. Retail chains are planning to reduce the size of selected stores by up to 25 pct. The reclaimed space will be used for last-mile logistics or leased to other companies.

Changing consumer habits are forcing operators to redefine their real estate portfolios. Today's customers prioritize speed and proximity, which is why the strategic focus is shifting to dense urban networks and smaller formats that better fit into everyday shopping journeys. An example of this transformation is Carrefour's plans to open 1,750 new convenience stores in France and Spain by 2030.
Elżbieta Majdan, associate director of property & asset management retail, Savills Poland.

Market Liquidity Supported by Sale-and-Leaseback

The increase in investment volume to EUR 6.1 bln was driven primarily by large portfolio transactions, whose value increased by 35 pct. Sale-and-Leaseback (S&LB) transactions played a key role, accounting for a staggering 21 pct of the total market investment volume. This is the highest share of this type of transaction in 13 years. The report also notes a significant inflow of capital from North America – activity by US investors was 59 pct higher than the five-year average.

Faced with pressure on margins and the need to modernise energy systems, retailers are increasingly turning to sale-and-leaseback transactions to release capital tied up in real estate. For investors, food properties with long, index-linked leases represent an attractive investment product. Although average yields in Europe for top supermarkets remained at 5.8 pct in the fourth quarter of 2025, we expect them to compress in the coming months.
Wioleta Wojtczak, head of research, Savills Poland

Despite food price inflation slowing to 2.5 pct by the end of 2025, European households remain cautious about their spending. The savings rate in the eurozone reached 15.1 pct, significantly above the 2014-2019 average (12.6 pct). This situation favours the growth of private labels and discount stores, whose revenues have grown on average by 5.2 pct annually over the past decade—almost twice as fast as mass retailers (3.2 pct).

Digitalisation and Sustainability

The future of grocery retail will be based on an omnichannel model, in which brick-and-mortar stores serve as online fulfilment centres. The share of online sales in the grocery sector is expected to stabilise at 4.8 pct by 2028 (excluding the UK market). At the same time, capital requirements related to ESG regulations are increasing, including those related to replacing refrigeration systems and installing photovoltaic systems, which are becoming a regular part of retail chains' capital expenditure planning.

And how does Poland compare to Europe?

Poland confirms many of the trends outlined in the European report, while retaining its unique characteristics. Food, beverages, and tobacco products are the largest retail category in Poland, accounting for 25.7 pct of retail sales in 2025. At the same time, these products are the least likely to end up in online shopping carts – e-grocery's share last year averaged around 0.9 pct per month. This is significantly lower than the projected European average.

The local market, like the European market, is focusing on multiple formats. Chains such as Auchan and Carrefour operate in Poland on multiple levels: from hypermarkets, through supermarkets (1,000-2,000 square meters), and local stores (MojeAuchan, Globi, Express), to ultra-convenience formats at gas stations. data from Statistics Poland (GUS) confirms a shift away from large retail spaces: at the end of 2024, there were 545 hypermarkets in Poland (a decrease of one store compared to 2020) and 10,647 supermarkets, with the number increasing by 2,477 during the same period.

Interest in the food sector also remains high on the Polish investment market. An example of an active investor is Centerscape, which in 2026 announced the purchase of Lidl stores in Mszczonów and Biedronka in Lidzbark. Investors are increasingly seeking retail parks with a strong grocery operator. This is evidenced by recent major transactions, such as the acquisition of eight Auchan shopping centers by Shopper Park Plus and the planned purchase of the Intermarché and Bricomarché real estate portfolio by the American Ares Management Corporation.