Germany: developments at Edeka and Rewe

Date : 10 April 2019

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.