Supermarkets in Germany

PROSPECTS

Price competition to erode value growth

The price war between discounters and supermarkets continued over the review period. Although grocery retailers was led by supermarkets Edeka and Rewe throughout the review period, discounters Aldi and Lidl continued to challenge their position.

Supermarkets to benefit from strong consumer sentiment

Supermarkets saw strong growth over the review period, despite intensifying competition. Over the forecast period, supermarkets is expected to continue to benefit from positive consumer sentiment and growing purchasing power, as the channel is seen to offer better quality and a superior shopping experience.

Impulse sales face the challenge of declining store traffic

Impulse shopping remains an important factor for supermarkets. Although many consumers come prepared with a shopping list, most end up adding to their basket once they are in the store.

COMPETITIVE LANDSCAPE

Rewe outperforms Edeka

In 2018, for the third year in a row, Rewe registered considerably higher value sales growth than Edeka, thereby taking over the leading position from Edeka for the first time. This can be attributed largely to Rewe’s successful integration of Kaiser’s and Sky supermarkets, and the successful optimisation of its product range, overall outlet modernisation and digital innovation.

Edeka continues to grow and invests strongly in Germany

In 2018, company-run Edeka outlets contributed to the company’s overall growth, due to the acquisition and successful integration of Kaiser’s stores. Independently run Edeka stores also remained a clear growth driver and continued to lead supermarkets in terms of both value sales and outlet number in 2018.

Stores promote the in-store shopping experience

As the competition between supermarkets and discounters is expected to intensify, supermarkets seeks to differentiate itself more strongly from discounters. To remain competitive, individual supermarkets are innovating with store formats that make shopping more enjoyable.

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