Rewe Group: developments across its operations

Jon Wright
Head of Insight - RA EMEA
@RetailAnalysis

Date : 23 September 2020

As Rewe Group commits to cutting greenhouse emissions, announces plans to exit Ukraine and appoints a new member to its International board, we round up news from the retailer.

Rewe Group looks to cut greenhouse emissions linked to its private labels

The retailer is aiming for a 15% reduction in greenhouse gas emissions across its Rewe and Penny private label supply chains. It is looking to meet this target by the end of 2030. It is benchmarking its reduction against figures from 2019. Rewe send it is ‘responding to the standards set out by the Science Based Targets initiative (SBTi), a partnership between the UN Global Compact (UNGC), the World Resources Institute (WRI) and WWF’.

Commenting on the target, Rewe Group’s divisional director, Hans-Jürgen Moog, said: “The 15% absolute reduction in greenhouse gas emissions compared to 2019 is an exceptionally ambitious target, given that the level of reduction will considerably greater if our private labels experience the increase in turnover that is forecast over the next ten years.

Rewe International appoints new board member

Rewe International has announced Espen B. Larsen will replace existing board member Janusz Kulik, who will leave the company at the end of March 2021. Larsen, who is currently managing director of Rewe’s Penny International division, will take on responsibility for the group’s operations more widely in central and Eastern Europe.

Rewe forms joint venture with Greenyard in Germany…

Rewe and Greenyard are to create a joint venture, which will be called Fresh Solutions, in Germany following the latter’s announcement it was going to work more closely with the retailer in its home market. The joint venture, if it is signed off by the German competition authority, will supply fresh fruit and vegetables to Rewe’s supermarkets. Greenyard will own the largest share in the joint venture.

…As it looks to exit Ukraine

Rewe has signed an agreement with locally based retailer Novus, which will see the latter wholly acquire its Billa chain in the Ukraine. The deal, which must be signed off by the Antimonopoly Committee of Ukraine, will lead to Rewe exiting a market it has been in for just over 20 years. During that period it has grown its presence to 35 stores in Kyiv and its surrounding region. Rewe has previously left countries where it does not believe it can become a leading player, with this step mirroring its historic ones. The money freed up by the exit will enable it to invest in other areas of its business, especially at a time when CAPEX investment is under pressure due to the COVID-19 pandemic.

Penny partners for home delivery in Romania

In Romania Rewe’s discount banner, Penny, has partnered with a local company, which will enable it to offer a home delivery service in Bucharest and Ilfov county. Shoppers will be able to choose from Penny’s full range of about 1,400 SKUs. The service’s development and launch has been accelerated by the COVID-19 pandemic and shoppers’ desire for solutions that help them minimise contact with others.