Rewe to slow ‘Billa Box’ expansion in Austria

Date : 11 February 2013

According to reports in Wirtschaftsblatt, Rewe’s Austria-based Billa subsidiary is going to slow the pace of expansion for its ‘Billa Box’ brand in the country.

New stores to be added, when opportunities arise

The company had previously stated, in 2011, that it wanted to add 10 stores annually until 2015, with a target of operating at least 50 new outlets. However, as of February 2013 the company operates only five ‘Billa Box’ stores, and while it wants to maintain this presence and add to it where possible, this would not be at the rate previously stated.

Difficulties of finding locations limiting expansion

A spokesperson for Rewe, Corinna Tinkler, was quoted as saying that locations in city centres are difficult to find, especially given the existing density of convenience stores in such locations. The issue is exacerbated by the fact that such positions also come with a comparatively high rent, which is difficult to make work economically given the limited range made available at a ‘Billa Box’.