Edeka increases focus on health and wellness

Date : 07 June 2018

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.