Edeka Nord has developed a new approach to the online channel and is also strategically strengthening its position in the bio market.
Decentralised e-commerce concept
A new online model has been developed, which plays into the strength of Edeka's regional structure. As part of the decentralised model, individual retailers within Edeka will have the flexibility to choose to have their different products at different regional prices. The new website,Edekanord-shop.de, already offers 13,000 products, including fresh produce, with more range to be added soon. Customers can choose between delivery or pick up, giving them greater flexibility. If successful, this model could be used as a blueprint for the entire Edeka group.
Reacting to the growing online channel
Shoppers in Germany have been reluctant to adopt online grocery shopping, however retailers are starting to invest more in their online offers. Edeka has regularly been announcing new developments in this area, such as its trial ofonline grocery pick up at Munich airport, in partnership with Emmasbox. Despite no official confirmation, there are rumours of Amazon Fresh entering the market, which would cause considerable disruption, and it is prudent for retailers such as Edeka to prepare for this eventuality.
Edeka to partner with Alnatura
Alnatura, a specialist bio (organic) retailer, has signed a deal with Edeka to have its products listed in all Edeka stores. The organic goods company previously had a partnership with dm, the leading drugstore retailer in Germany. However, this partnership is no longer beneficial, as dm has launched its own range of private label bio products and has been decreasing the number of Alnatura products on the shelves. Bio is a growing trend in the German market and by partnering with Alnatura, Edeka is offering its customers a greater range of the products they are interested in. Markus Mosa, CEO of Edeka, said, "With Alnatura, we have in the future a strong brand in the product range that will differentiate us not only in the organic segment of the competition." To begin with, 200 Alnatura products will be stocked, increasing to 400 over time, although both partners say this could increase further.