Rewe's Penny: 60 second round up

Date : 17 September 2015

Rewe's discount banner, Penny, exits Bulgaria as well as announcing a new customer engagement initiative in Germany and developments in private label. 

Penny to withdraw from Bulgaria

Penny, which currently operates in 6 European countries outside of Germany, has announced it will exit Bulgaria to focus on its operations in Austria, Czech Republic, Hungary, Italy and Romania. Billa, the full range international banner for Rewe, will continue to operate its 92 stores in Bulgaria. Where possible, it will take over some of the current 49 Penny outlets in the country. The move comes as Rewe struggles to grow Penny sales and looks to give more focus to Germany and its other markets, particularly Italy, where Penny is performing well.

Penny engages customers through 'local' initiative

Rewe has announced it will rename all its Penny Discount stores in Germany with unique names, chosen by its customers. Over a two week period, shoppers will be able to vote for a store name each time they visit Penny. This new initiative aims to make customers feel more involved and connected with their local store, something that is becoming increasingly important in Germany, and is demonstrated through numerous local products in store. Edeka, Rewe's largest competitor, already has different names for its stores, as they are each named after the individual owner. Rewe initially trialled this initiative in 2014, in Hamburg, renaming all 88 stores in the city with names voted for by shoppers, and due to the customer response, are rolling this out across the Penny estate.

Private label development

Penny has introduced a new design for its 'Orto Mio' private label brand. The redesign uses engaging and colourful new packaging to better reflect what the product stands for. The antipasti range has 45+ skus and the new packaging has been illustrated to reflect the fun and sociable nature of the product type. Pictures of real food are displayed, alongside witty captions such as 'oh la la olives' and 'we are the champignons.' By engaging customers with its brand in an innovative way, Rewe is building on its strong private label foundation.