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Germany-based cooperative Edeka said group sales increased 3.2% to €53.6bn. The performance was driven by the organisation’s independent retailers, which saw sales improve by 4.9%.

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Germany-based Edeka has announced it will add greenhouses in some of its stores. The step will enable it to offer shoppers fresh, locally-grown herbs and salads.

Edeka to use Infarm solution

Edeka said it had added Infarm’s greenhouses at stores in Edeka Loddenheide and Edeka Gievenbeck, which are both in Münster. Discussing Infarm’s greenhouses, the store owner of Edeka Loddenheide said: “You can hardly buy your products more local. The special thing is that the customer can watch the herbs being grown.

Solution adds to theatre

We have been tracking solutions like that from Infarm for several years. In 2016 Infarm added a greenhouse in a Metro Cash & Carry in Berlin, while Albert Heijn added a growing wall in its Purmerend store and Colruyt has tested in-store vertical farming cultivation. Edeka said the greenhouses do not use pesticides, while the closed ecosystem enables it to limit negative inputs like heat, cold or lack of water, which means they are grown in a more consistent way.

The solutions help the retailers build their brands within the health and local areas, while by involving third parties many can roll them out comparatively quickly.

As Edeka and Rewe announce initiatives in their home market, we round up news from the retailers.

Edeka to expand organic focus

As shopper interest in organic products grows, Edeka has rumoured to be investigating opportunities to launch a format specifically aimed at such ranges. Trade publication Lebensmittel Zeitung said Edeka would use the Naturkind brand for both standalone stores and shop-in-shop outlets in some of the retailer’s hypermarkets. The concept would stock both the Edeka Bio private label range and branded alternatives. To support its growing focus on organic, Edeka could expand its private label range with up to 440 seasonal items.

Rewe trials faster checkouts…

Rewe, at a store in Cologne-Rodenkirchen, is testing a self-scanning solution to enable shoppers to scan their own products. The technology will allow shoppers to either use specific scanning devices, while in future the technology could be extended to their smartphones. To benefit from the service, shoppers will have to download the Smart Shopping app and register with their Payback account details.

…As it invests in prices…

Following the publication of its 2018 results, Rewe’s chief executive Lionel Souque said that the retailer will remain price competitive in the market. Souque was quoted as saying: “We track the prices of Aldi and Lidl every day and adjust our prices accordingly. We will not allow Aldi price leadership in branded goods.

…And its Billa operations in Bulgaria

Rewe is set to invest more than BGN34m (US$19.6m) in its Billa operations in Bulgaria in 2019. It said the money would be spent on opening at least two new stores in Paradise Center and The Mall shopping centres in Sofia and updating some of its existing 124 sites. The announcement comes after the retailer discussed its 2018 results, when it said sales rose 5.9% in Bulgaria in 2018.

Want to find more insight on the German market? Subscribers can read our country presentation that explores the key trends in and the growth strategies of the leading retailers in the country.

We look at how Germany-based Edeka and Rewe are evolving their strategies relating to their forecourts in the country.

Rewe slows down expansion at Aral petrol stations…

Rewe has said it will stop the expansion of its its Rewe To Go concept at Aral petrol stations. The companies have agreed to focus on the quality of the service before opening more sites. However, the goal to open 1,000 forecourts by 2021 remains, with the roll out expected to recommence from June 2019.

In a statement to German publication NZR, Rewe said, “So far, the focus has been on expanding the network. We now want to use the first half of 2019 to bring new insights and new knowledge to the shops and to optimise them accordingly”.

…Due to high costs and increased transcripts

Since the first Rewe To Go outlet was launched in 2016, Rewe has opened 465 stores at Aral’s petrol stations throughout Germany. The roll out has, however, caused problems for Rewe’s logistics, led to high purchase prices and generated further personnel expenses. Convenience formats are also suffering significantly due to the dominance of discounters in the Germany market.

Other retailers, such as Albert Heijn, have faced similar issues. At the end of 2017, the retailer was forced to close six convenience stores and five locations operated in cooperation with Shell due to their “insufficient growth potential”.

Edeka forms new forecourt partnership with PKN Orlen

Meanwhile, Edeka has announced it will be the food wholesaler for PKN Orlen’s Star forecourt stores across Germany. The Star banner, which operates nearly 600 outlets, was previously supplied by Lekkerland.

Deliveries will be made twice a week while the companies work jointly on new food concepts. Edeka currently supplies almost all the 800 Jet petrol stations, some of which operate under the Spar Express banner.

Presentations

03/06/2019
An essential summary of trading priorities, latest developments, and other key commercial insights for Edeka.
20/05/2019
Edeka Clausen spotlights how retailers can differentiate themselves to compete with price-focused rivals by celebrating their strengths in produce and counters and meeting the needs of local shoppers.
10/04/2019
This guide to Germany includes a summary of the country’s economic outlook, an overview of the grocery retail market, insight on the country’s leading retailers and the short-term developments that will drive the market.
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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