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German retailer Edeka has released a new TV commercial promoting its latest marketing campaign. The commercial is based on the popular ‘Supergeil’ commercials and markets Edeka’s ‘Supergeile Preise’ (super-cool prices).

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Edeka has opened a food technology campus next to one of its supermarkets in the centre of Berlin. The campus is a space for start-ups to develop and test their products and technologies.

Shaping the ‘assortment of tomorrow’

Edeka hopes the campus will shape the ‘assortment of tomorrow’ by supporting start-ups. There is a coworking room, a kitchen studio and an event space on the campus. The retailer also provides start-ups with support from a network of experts and will allow them to test their products in-stores soon.

Lunar GmbH will run the campus

Lunar GmbH, a subsidiary of Edeka headquarters, will run the campus. Lunar GmbH was also responsible for Edeka’s ‘Foodstarter’ platform launch in July 2017. The online platform connects start-ups to food retailers. Since its launch, over 700 products from 200 start-ups have been introduced in stores.

Subscribers can view our strategic outlook for Edeka here.

Edeka has launched a new campaign to promote its health and wellness offer, following strong sales results for 2017.

'Simply beautiful- inside and out'

Announcing the launch of the new campaign, Edeka highlighted the importance of beauty from within, through a balanced diet, as well as on the outside through personal care. The retailer is working with TV presenter Annemarie Carpendale to promote a 'perfectly balanced mix' of diet and lifestyle, focused on overall health and wellness. The campaign will also use social media to engage with shoppers, including recipes and beauty tips being posted. This is the latest health focused move from Edeka, building on its recently announced partnership with Budnikowsky, a Hamburg based drugstore chain. The joint enterprise should help Edeka to expand in the drugstore channel and offers potential for growth in the high margin channel.

Strategic priorities

Along with health, other strategic areas of focus for Edeka include private label growth and online. It has been investing in its private label ranges, helping it to differentiate from its competitors. It has been flexible and fast in responding to trends, including an increased focus on nutrition and the expansion of its premium label, Edeka Selection. Online has also been growing successfully, with sales of €122m in 2017, far exceeding its target of €100m.

In 2017, overall sales for the retailer grew by 5.4% to €51.9bn, reflecting the strong progress it is making in a number of areas. It has rapidly integrated the 338 Tengelmann stores it acquired, modernising the estate, expanding the product ranges and improving the technology. So far this has been successful, with a number of stores reporting double digit growth since the takeover. Discount banner Netto also performed strongly, growing by 3.1% to €13.1bn.

2018 plans

After opening 245 new stores in 2017 (excluding the takeover of Tengelmann), and expanding 148 stores, Edeka plans to build on this further in 2018 by investing €2bn, up from €1.7bn in 2017. Online will continue to be a key area of focus, as it looks to strengthen and expand its services. We also expect to see new initiatives being launched in the strategic growth area of health and beauty, as Edeka continues to focus on responding to shoppers changing needs.

 

Edeka is partnering with Hamburg based Budnikowsky to expand in the drugstore channel.

Developing in the channel

Edeka has formed a joint enterprise with Budnikowsky to enter the drugstore market and is looking to roll out a new concept throughout its regional divisions. Under the same banner, Budnikowsky will also be expanding its footprint and moving outside of Hamburg, where its stores are currently located. Berlin is the first area planned for expansion.

Building efficiencies

For both partners, better buying conditions are expected to generate significant savings. Going forward, buying, marketing, communications, advertising, shopfitting and IT services will all be conducted by the new joint enterprise. As well as efficiencies, the partnership offers Edeka growth potential into the high margin drugstore channel.

 

Presentations

11/02/2019
An essential summary of trading priorities, latest developments, and other key commercial insights for Edeka.
08/11/2018
We review the outlook for Edeka across all its channels as it looks to bolster its health-focused offering and differentiate its offer through private label innovation. We also look at the retailer's evolving channel strategy and its five year growth prospects.
22/08/2018
In this insight presentation we look at the AgeCore buying group, its members and strategy.
View all presentations

Key Presentations

We review the outlook for Edeka across all its channels as it looks to bolster its health-focused offering and differentiate its offer through private label innovation. We also look at the retailer's evolving channel strategy and its five year growth prospects.

This in-depth guide to Germany explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

An essential summary of trading priorities, latest developments, and other key commercial insights for Edeka.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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