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.