Variety Stores in Germany

PROSPECTS

The rise of discount variety stores continues

Discount variety stores such as Tedi, Ja Woll and Mäc-Geiz continued to grow in 2018 through rapid outlet expansion, a constantly changing product range, exceptional price competitiveness and high product turnover. Discount variety stores used to be regarded as dusty and unattractive, but they are increasingly becoming a local supplier for non-food products such as decorative articles, stationery, small electronics and DIY products.

Variety stores expected to trade up

The strategy of discount variety stores will continue to be strongly focused on price, but as the channel is growing it is expected that discount variety stores will start to trade up. The first signs of this development are there, as some players are already modernising their stores and introducing a higher-end look.

Outlet expansion of discount variety stores set to continue

As opposed to the general trend in retailing, variety stores is expected to continue to expand in terms of number of outlets. This will enable the channel to reach more consumers.

COMPETITIVE LANDSCAPE

Tchibo still leads variety stores but continues to decline

As competition from online retailing and discount variety stores increases, Tchibo’s non-food business is declining. Tchibo continued to lose share to its competitors in 2018 but still led variety stores through its long-standing tradition in the coffee business.

Tedi continues to rise

Discount variety store Tedi continued to expand aggressively in Germany in 2018. It holds, by far, the largest number of outlets among all variety store players.

Hema expands in Germany

Dutch retailer Hema wants to expand its presence in Germany’s city centres. The company aims to have 30-40 outlets open by 2019 (from 17 in 2018) and 150 outlets in the long term.

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