Hypermarkets — large combined supermarket and department stores exceeding 2,500 sq m — continue to lose traction, with their share of Europe’s grocery market falling from 12% in 2019 to 10% in 2024 (Euromonitor forecasting 9% by 2029). At the same time, average grocery store footprints shrank by 2.6% between 2020 and 2024, even as total grocery floorspace rose by 2.6%, pointing to waning interest in the big‑box model. As such, operators are rethinking surplus floorplate. Auchan plans to reduce certain hypermarkets by up to 25%, publicly acknowledging a departure from its historic affinity with large retail spaces. Meanwhile, format pioneer Carrefour has opted to reinvent rather than downsize, partnering with Vusion to digitise all large French stores by 2030, improving online fulfilment efficiency.

One reason for the loss of momentum is the relocation of non‑food products toward channels better suited to their breadth and price. According to NielsenIQ, bazaar sales in French hypermarkets fell 14% between 2020 and 2024, with miscellaneous non‑food spend shifting to e‑commerce and discounters. As the demand for large in‑store non‑food ranges weakens, operators are releasing space for online picking, last‑mile logistics or third‑party uses. Consequently, large formats are increasingly being reconfigured rather than maintained in their original form.

Large generalist retailers are increasingly challenged by specialised, food-only operators. Prosol, owner of Grand Frais, delivered 20% turnover growth in FY2025, reflecting strong consumer resonance with a mid-market, quality-led proposition anchored in fresh, locally sourced produce and a market-style shopping experience.

Perhaps a more potent explanation is the rise of convenience as a customer priority, reflected by Tesco’s latest commitment to launch 70 new Express convenience stores and Carrefour’s plan to roll out 1,750 convenience‑led ‘Proxi’ formats across France (1,000) and Spain (750) by 2030. Today’s shoppers value speed, proximity and low-friction missions, pushing retailers to expand dense urban networks designed for top‑up trips, rapid replenishment and seamless click‑and‑collect. In Southern Europe, especially, grocery shopping remains a social, high‑frequency activity, and sprawling hypermarkets are increasingly at odds with those preferences. Spain’s market leaders are accelerating city centre formats with fresh counters, simplified layouts and dedicated pickup zones, while in Portugal, Continente has pivoted from hypermarket expansion in favour of smaller supermarkets and its Bom Dia convenience concept, opening new stores across Lisbon in January.

_{Read the articles within Spotlight: European Grocery Report – Q4 2025 below.}