Germany: 60 second round up

Keshia Beadle
Senior Retail Analyst
@RetailAnalysis

Date : 17 July 2020

We bring you the latest news from Germany.

Edeka Südwest improving fresh department

Edeka Südwest set a goal of increasing its fruit and vegetable sales by 10% in 2019 which it was successfully able to do. It has developed and rolled out new concepts to aid with this and other departments that have seen impressive returns include bakery and meat. The coronavirus pandemic has also boosted sales. Frequency of visits has decreased by around 5%, but sales in the region are up by around 30%. However, a VAT cut by the government has led to retailers in the market dropping their prices and triggering a price war - it is not yet clear what the longer term effects of this price war could be.

Kaufland working on acquisition of Real stores

Kaufland, who have registered interest in purchasing 101 Real stores, are looking to quickly integrate the stores into its organisation. It is looking to have around 20 stores converted to Kaufland stores as early as October 2020, with plans to complete the full integration by spring 2022. It is already in talks with existing suppliers and the competition for space is high, due to Kaufland stocking a smaller range than Real.

Aldi switching to central purchasing

Aldi Süd and Aldi Nord have been aligning some of their purchasing processes. This includes improving the conditions of its brand purchases. With the price war continuing to accelerate in Germany, being able to offer competitive prices has become even more important and by working together, the two Aldi companies are able to improve their position.

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