Saving customers: Rewe group relies on discounts and larger branches

Saving customers: Rewe group relies on discounts and larger branches

In a time when consumers are increasingly relying on discounts, the Rewe group, which includes supermarkets such as Billa, Penny and ADEG, shows a significant change in shopping behavior. The managing director Marcel Haraszti announced that an average of 38 percent of the goods at Billa and even 44 percent are sold at Billa Plus with discounts. These price adjustments and the increase in own brands to 33 percent compared to only 22 percent ten years ago show how strong inflation and the economic situation shape the purchase habits. According to Haraszti, the increased food prices seem to be exaggerated; In fact, these rose only by 0.8 percent in October. This is against the general trend of economy among consumers who act particularly carefully in crisis times, as the Krone reports.

expansion and increase in efficiency

To fix the cost pressure due to rising energy prices and wages that have risen by around 100 million euros this year, the REWE group plans to increase efficiency. Despite these challenges, the company remains optimistic and invested in new areas; The average market has increased from 770 to 821 square meters. However, the house delivery was restricted for cost reasons and is only offered in Vienna. Statista informs that the REWE group is also planning to introduce self-service boxes in communities without local suppliers, which would have to be implemented on the condition of expansion of the shop opening hours. Haraszti urges legal changes to be able to compete with online trading.

At the same time, Dirk Rossmann GmbH, Germany's leading drugstore chain, recorded a continuous increase in sales that reached almost 14 billion euros in 2023. The company now operates 2,288 branches in Germany, while it is also driving its expansion to Eastern European countries. The steadily growing number of customers, with over 1.8 million daily buyers, underline the popularity of Rossmann's own brands and their wide range of around 4,600 products. This development shows that despite the economic difficulties of retail in certain segments.

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OrtBurgwedel, Deutschland
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