German market leader Edeka has reported 2% sales growth to €47.2 bn in 2014, driven by its independent retailers, which generated revenues of €23.4 bn, up 3.6%. Edeka was proud of how it had delivered this in a deflationary trading environment.
Sales grew at Netto
Netto Marken-Discount saw a 2.2% increase to €12.0 bn, operating 4,168 stores as of the end of 2014. There's been much work to strengthen the business under way, and this shows signs of progress, but the retailer will look for further progress in 2015, despite the tough trading conditions and challenging competitor set.
Edeka opened 330 stores and renovated others
More broadly, Edeka opened 330 stores in 2014, taking the retailer’s total store count to 11,492 stores and sales area of 10.64m square metres.
A number of other stores have also been renovated, with new store concepts introduced. CEO Markus Mosa said the results were also helped by the group’s investment of €1.7bn on its production plants, store network and logistics.
Focus is on private label product development
In 2015, Edeka plans a similar level of capex as in 2014. Private label has been a focus across several areas, including the value range Gut&Gunstig and its regional ranges. Looking ahead, the company will expand its regional and organic private label range, in addition to developing a vegan private label product range. Indeed, alongside reinforcing its strong credentials in quality food, private label is an important route to differentiation for Edeka. A great example of how these two are combining being the retailer's recent launch of its convenience, 'Edeka deli' range.